Russia Baltic Pork Invest AS Probably the most efficient large scale pig producer in the world

16th January 2014

Presentation

Thomas Norgaard, 41

• Farmer in Denmark since 1994

• Chairman of RBPI in the period 2006-2012

• CEO of RBPI since 2012

• Member of B2B Bonus

• Board member in B2B Bonus 2005-2010

• CEO of Bonus Baltic Invest AS who owns 682,211 shares in RBPI

• 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

Source: National Pig Breeders Union Note: The majority of the entities listed are sites at different pig producers

KALININGRAD SITE

RBPI – best in class in the best of markets

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.

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

• 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

Shareholders

Chairman of Board

CEO

Thomas Nørgaard

Niznhy Novgorod Pig Production

and Logistic David Nielsen

Grain Production and Service

Linne Fromm-Christiansen

Construction Per Holst

Group Finance Olga

Vereshchagina

Group Sales Olga Koroleva

Development

Anders Jakobsen

HR

Yaroslava Vaytekute

Personal assistent and Scand Finance

Berit Aagaard

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

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

Boar site (Quarantine) Sow site

5 km

Piglet site

Fattener site

Fodder

factory

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

Feed Factory

• State of the art equipment

• 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

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

• 82 boars

• 6200 sows, each producing 33 slaughter pigs per year (outperforming peers)

• Automated feeding, heating, ventilation, manure removal

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16 Live born/sow per birth cycle

• 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

Pig Production

Key Figures

Efficiency November 2013

October 2013

September2013

Weaned pr. year sow 33,5 32,4 31,3

Daily weight gain 7- 30 kg. 449 422 414

Daily weight gain 30 - 110 kg. 901 894 847

Year sows 6.348 6.373 6.410

Key Figures

Income statement, NOK thousand 2011 2012

Total revenues 143.579 265.409

Operating expenses -69.084 -149.235

EBITDA 74.495 51,9% 116.174 43,8%

EBIT 52.946 89.291

Net financial items -24.898 -23.854

Net profit 28.048 19,5% 65.437 24,7%

Balance sheet, NOK thousand 31.12.2011 31.12.2012

Total assets 750.180 786.385

Net debt 530.183 506.418

Total equity 219.997 279.967

Key figures 31.12.2011 31.12.2012

Number of shares 2.759.144 2.759.144

Total number of employees 295 249

Average number of sows 3.330 5.550

Total number of pigs sold 93.303 160.846

Sold pigs per yearsow 28,0 29,0

Land, hectares 7.645 7.645

Ratios 2011 2012

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%

Sales Department

• Russian meat/ poultry trading companies

• Meat processing plants

• Live pigs

• Half carcasses

• Slaughterhouses

• Retail chains

Farm Construction

Specialist in design and permissions • 8 persons

• Engineers

• Building with subcontractors

• Optaining permits

• Construction management

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

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1990 2000 2010 2012 2014 2016 2018 2020

Consumption (LHA) 1,000 tons Total Production (LHA) 1,000 tons Per capita (RHA) kg

Market drivers and competition • The market for pork production in Russia is highly fragmented

o No producer accounts for more than 10% of the total production volume

o 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

• Several factors contribute to the development of the pork market including growing demand, product development, resource pressures, industry modernisation and trade restrictions

Indicators for the Russian pork market

The Russian market is characterised

by a lack of local supply of fresh meat

relative to consumption

Market opportunities

A winning concept set to grow

Expansion strategy • 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

Nizhny Novgorod

Penza

The successful concept in Kaliningrad will be implemented in other locations, driving

growth

Shareholders

The shareholders in RBPI until the 9th 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 % - 223 minority shareholders

The founder of RBPI:

1,8 % - Knive Holding AS, Knut Langeteig

The shareholders in RBPI after transaction 9th December 2013:

69,7 % - CPF Investment Ltd.

19 % - Bonus Baltic Invest A/S

11,3 % - 94 minority shareholders