Sino Agro Food — Technical Presentation (March 2016)
21 slides from Sino Agro Food's technical presentation, Mar 7, 2016
Slide 1: The SIAF APRAS Model: A Paradigm Shift in 21st Century Aquaculture
The SIAF APRAS Model: A Paradigm Shift in 215t Century Aquaculture The Zhongshan MegaFarm Project by Anthony C. Ostrowski, Ph.D. Chief Scientific Officer, SIAF www.sinoagrofood.com
Slide 2: SIAF Overview
SIAF Overview Company History: USA, Nevada incorporated, 1974; China, corporate HQ, Guangzhou, since 2007 Business Model: Vertically integrated primary producer, processor, and distributor of natural & sustainably produced protein and plant foods, animal feeds, and value-added processing, Scalable,
Slide 3: Why Seafood?
Why Seafood? Status of World Fisheries & Aquaculture Aquaculture Is Expanding to Meet World Fish Demand 20 Aquaculture = (0% of world seafood production) Aquaculture production will need to double by 70MMT Wild (capture) fshertes 10 «1970 0 200 ar) 030 oo SD ‘Source: Historica data 1950-2010- FAO. 2
Slide 4: Why Aquaculture?
Why Aquaculture? Seafood as a Protein Producer Comparison of Feed Conversion Rate (FCR) between species FCR = dry feed fed/wet weight gain Cattle’ 6-8:1 Swine’ 3.5:1 Chickens’ 2:1 Salmon? 1.15-1.35:1 Aquaculture? —0.5:1 Wild fish* 4:1 *Shike. 2013. Beef cattle efficiency. U. IMlinois =Borjkli. 2002.
Slide 5: Why China?
Why China? Growth of Chinese Middle Class Middle-class consumers are poised to lead the 60 - Chinese consumption brigade 55.0 so 4 i, 42.5 3 37.5 Bo 50% rise in 10 years 3 “25 MMT more high 2 value seafood needed 20 z ~13 MMT total more a 21 seafood needed’ 7 + 3.4. § 0.3 +o 1996 2006 2016 (P) 2026
Slide 6: MegaFarm Overview
MegaFarm Overview + Description: — APRAS indoor aquaculture with aquaponic fruit & vegetable, aquatic feed, & value-added plant production + Location: Strategic prime agricultural land in Zhongshan, Guangdong Province + Land Area: 3,700 mu (600 acres) + Strategy: Sustainable production practices; gr
Slide 7: MegaFarm Competitive Advantage
MegaFarm Competitive Advantage * APRAS Technology * Focus on Live Seafood — Increased survival — Higher price vs. fresh/frozen seafood * Pathogen exclusion, stable — Pear! River delta is world’s largest live environment seafood market — Increased efficiency * 120,000,000 population * Increased densi
Slide 8: SIAF = 21st Century Aquaculture: The Paradigm Shift
SIAF = 21St Century Aquaculture THE PARADIGM SHIFT
Slide 9: World Aquaculture Production Methods
World Aquaculture Production Methods RAS represents only 0.04%! of world 66.6 MMT? seafood production peta) —— y "Inland & Ponds 0.04% = Racks (oysters) (0.025 MMT) = Net Pens/Cages = RAS Wino Agro Food
Slide 10: Advantages of RAS
Advantages of RAS Low water consumption — Recirculation (<5% loss/d) Minimal land use — Higher densities (50 vs. 15 kg/m? for salmon net pen) Better hygiene and disease management — Eliminates “excludable” diseases & controlled environment reduces stress on animals Reduces environmental effects — Co
Slide 11: So Why Not RAS Everywhere?
SIAF = 21St Century Aquaculture So Why Not RAS Everywhere?
Slide 12: Revenue, Income and Financial Ratios During Third Year of Operation
Revenue, Income and Financial Ratios During Third Year of x Operation — Salmon Net Pen vs. Salmon RAS* ino Agro Food Net Pen RAS Revenue Sales $10,478,750 $10,478,750 Cost of goods sold Fixed costs Mortality insurance $141,228 $141,625 Maintenance $300,043 $188,524 Waste disposal NA $125,000 ‘Others
Slide 13: The APRAS Paradigm Advantage
The APRAS Paradigm Advantage Bho agro Food Culture space 9,000 13,928 8,150 15,000 (m2) (1,250 MT/yr) (1,250 MT/yr) (1,000 MT/yr) (6,500+ MT/yr) Capital Costs (Capex) $2,000 $9,049 $1,830 $6,0004 - $7,0005 (USD/MT) Footprint density 0.11? -0.141 0.12 0.12 0.43 (MT/m?/yr) (25 kg/m?) (50 kg/m?) (50+ k
Slide 14: SIAF = 21st Century Aquaculture: The Key Elements
SIAF = 21St Century Aquaculture THE KEY ELEMENTS
Slide 15: 1) APRAS Production Cost Edge — Giant Prawn
1) APRAS Production Cost Edge — Giant Prawn (M. rosenbergii) SIAF Indoor APRAS SIAERAS seed FCR =0.9 seed —__., 60% ean Year-round, reliable, consistent “Gro ote production Asian Outdoor Open Ponds FCR = feed fed/weight gain openPonds _feee20 2.0 4A weet steed Kees Seasonal, unpredictable, variable
Slide 16: 2) SIAF APRAS Strategy — Yield Maximization
2) SIAF APRAS Strategy — Yield (MT/mu/yr) Maximization Indoor RAS (24 mu) $ $ $ (phased growout, partial harvest) 52 MT/; 216M seed/cycle 270K (x72 tanks) 272K (x48 tanks) (36tanks) AA M.rosenbergi 10% mortality 2% mortality 2% mortality 1% mortality 273 MT/mu/yr 105 day cycle | Outdoor Open Ponds (
Slide 17: APRAS & Strategy Footprint
APRAS & Strategy Footprint nc
Slide 18: MegaFarm Footprint
MegaFarm Footprint MegaFarm 2025 = 300,000 MT* Thailand 600 Kilometers Area is 0.2% of Tra Vinh Province Nearly all production is concentrated in the Mekong Delta Provinces 9,600,000 acres umn
Slide 19: 3) High Niche Market Price — Seafood City, Zhongshan (2016)
3) High Niche Market Price — Seafood City, Zhongshan (2016) Fee EIT ())| Giant prawn RUN bA3E sooeg)§ ™ rosenberait (72/7 = $22/ke) s 60°° eee! (¥60/7tiFF= $18.50/ke) || White shrimp L. vannamei King Crab (3-5 kg) (¥238/7HFt = $73/kg) Large Groupers (3-5 kg) (¥368/ 71 FT = $113/kg) Sr hr ct
Slide 20: SIAF = 21st Century Aquaculture: Thank You
SIAF = 21%t Century Aquaculture Sustainable Intelligent Aqua Farming THANK YOU!
Slide 21: Important Notice
Important Notice Information in this presentation may contain projections and forward looking statements that reflect the Company’s current views with respect to future events and financial performance. These views are based on current assumptions which are subject to various risks and which may cha