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Workshop 3 : Investing into Sustainable Agriculture and Food ProductionNovember 2013

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LA COMPAGNIE BENJAMIN DE ROTHSCHILD | ONF INTERNATIONAL | MORINGA 2

Moringa | in a nutshell Moringa is a sustainable agro-forestry fund with a target size of

€100m Geography: Latin America and Sub-Saharan Africa

Mission

Benefits

Key strengths

Profitability of 10-12% net for investors based on strong fundamentals and long term market trends

High positive environmental impact projects Strong social benefits for surrounding populations, including through

out-grower programs

Core team boosted by two complementary partners: La Compagnie Benjamin de Rothschild and ONF International

A strong field presence and network A well defined pipeline of over 40 replicable projects A TA facility to re-inforce the impact of the fund A first closing (51.4 M€ achieved in august 2013)

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LA COMPAGNIE BENJAMIN DE ROTHSCHILD | ONF INTERNATIONAL | MORINGA 3

Moringa | invest in agroforestry Sustainable production of agri and timber products is a key to

successfully combating deforestation and climate change

Agriculture is by far the main driver of deforestation

Deforestation has direct environmental impacts: climate change (17% of GHG emissions), droughts and flooding, soil erosion, biodiversity destruction

Monospecific plantations do not offer a sustainable alternative : biodiversity loss, eviction of local

communities, competition with agricultureConservation programs do not necessarily enable economic and social development for communities

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LA COMPAGNIE BENJAMIN DE ROTHSCHILD | ONF INTERNATIONAL | MORINGA 4

Agroforestry is the spatial or temporal combination of trees and crops or animals, with biological, social and economic synergies leading to higher productivity, reduced risks, a more stable income for local populations, and positive environmental impacts

<+Examples of biological interactions : Better use of sun light Better use of water Biological regulation of pests

Global profitabilitySocial benefits

Environmental impacts

Moringa | agroforestry: a logical approach

Coffee under shade Sylvopastoralism

Acacia intertwinned with cassava

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LA COMPAGNIE BENJAMIN DE ROTHSCHILD | ONF INTERNATIONAL | MORINGA 5

Moringa | working with outgrowers brings value

A small nucleus plantation

SH interested in increasing their revenues

A plant to process their products (sawmill, press…) and through adequate logistic a better access to provide:

No cumbersome land acquisition No land conflict No big capital investment Optimum cash flow profile But understanding the outgrowers or

their cooperative is essential

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LA COMPAGNIE BENJAMIN DE ROTHSCHILD | ONF INTERNATIONAL | MORINGA 6

Agroforestry provides a sustainable and profitable alternative to the unsustainable land use scenarios that drive deforestation

Compared to these scenarios, well designed and well managed agroforestry projects provide:

better risk mitigation in the short and long run

higher profitability in the long run

Moringa | invest in agroforestry

Mono culture

Timberplantation

Soy, etc. Eucalyptus, etc. Timber,

biomass… from mixed species

Food crops

Cash crops

Agroforestry synergiesEnvironmental services

Increased and diversifiedrevenues

Reduced risksTechnical risks

Environmental risks: soil exhaustion, fire, wind, pests

Social risks: food competition,eviction of communities

Market risks: Price volatility

Regulatory risks: Local & InternationalPr

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Profitable & sustainableagroforestry

Env. risks

Social risks

Market risks

Reg. risks

Tech. risks

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LA COMPAGNIE BENJAMIN DE ROTHSCHILD | ONF INTERNATIONAL | MORINGA 7

Moringa | embedding sustainability to bring value to the investors

Selecting markets with a strong growth potential

Creating long term

environmental value

Creating a “supportive

environment”

Generating more value for the investor through a sustainable approach,

bringing benefits to communities

Projects are embedded into

markets with high growth potential

and meet industries future needs

Adequate selection of trees and crops

brings back fertility to damaged lands

Outgrowers are given better genetic

selection, better logistics, financing,

better access to market

Exit is easier, the purchasing entity

can further expand its business

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LA COMPAGNIE BENJAMIN DE ROTHSCHILD | ONF INTERNATIONAL | MORINGA 8

Project located on the banks of the Magdalena river, 120 km from the harbor of Barranquilla (Caribbean sea)

Deforestation and unsustainable land use has taken its toll… large scale soil erosion, filling the river with sediments and causing floods

Land for pastures have shrunk and over grazing on the remaining part has diminished food access for the cattle

Project Magda | a project that meets these requirements

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LA COMPAGNIE BENJAMIN DE ROTHSCHILD | ONF INTERNATIONAL | MORINGA 9

Commercial reforestation in a sylvopastoralism environment, in close partnership with local ranchers via “contrato de participacion”

The project was initiated in 2000 by the public organization in charge of Magdalena river’s management, supported by ONFI

The project of reforestation consists of a commercial plantation of Teak and Melina, 2 well-known commercial timber species, and Ceiba, a local species, for commercialization in national and international markets

Farmers also receive technical support to improve the management of cattle, pastures and soils

Project Magda | a project that meets these requirements

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LA COMPAGNIE BENJAMIN DE ROTHSCHILD | ONF INTERNATIONAL | MORINGA 10

Project Magda | an excellent risk adjusted profitability

Project’s cash flows (30 years)4th investment phase

Carbon component (Greenfield*)

Cormagda-lena

Finagro

Faber Castell3rd investment

phase

2nd investment phase

1st investment phase 2 800 ha

800 ha

1 900 ha

3.800 ha

2000 2004 2008 2010 2012

Objective :

> 10.000 ha

-150 000

-100 000

-50 000

0

50 000

100 000

150 000

200 000

-15 000

-10 000

-5 000

0

5 000

10 000

15 000

20 000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

CF from investment CF from operations Cumulated cash flows - right axisRevenue (cum) - Right Axis Capex + Opex (cum) - Right Axis

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LA COMPAGNIE BENJAMIN DE ROTHSCHILD | ONF INTERNATIONAL | MORINGA 11

Problem: Cattle ranchers had land but were in

poverty trap Results:

Ranchers have learned a lot (planting trees, improving ranching techniques) and increased their revenues.

New standing planted forests which reduce soil erosion and improve water levels

Dramatic improvement in land prices due to improved fertility

Moringa investment would allow upscaling of project, leveraging positive pilot projects results

Project Magda | with strong environmental & social impacts

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LA COMPAGNIE BENJAMIN DE ROTHSCHILD | ONF INTERNATIONAL | MORINGA 12

Disclaimer

La Compagnie Benjamin de Rothschild and ONF International make no representation regarding the accuracy, reliability or legality of the information contained in this document. Past performance is not a guarantee of future returns. The value of investments may fall as well as rise. In addition, the contents of this document are not intended to constitute financial advice and readers thereof should consult their legal and/or financial advisers before concluding any transaction on the basis of the information contained herein.

The project information presented in this document are based on the documentation given by the project operator to ONFI. It has thus not yet been tested and analyzed by the Investment Advisor. The numbers presented are based on an average scenario.

This document does not constitute an offer or solicitation for any services or products in any jurisdiction in which such offer or solicitation is not authorized. Any entity or person should make its own assessment in light of the laws and regulations applicable to it as to whether it is authorized to access the information and/or products to which this document refers and otherwise refrain from doing so.

La Compagnie Benjamin de Rothschild and ONF International shall in no event be liable for any damages arising out of or in connection with the reliance on the information contained in this document. This presentation is subject to French law, with exclusive jurisdiction in France.