Aeci Ltd · JSE:AFE
Aeci — Investor Day (October 2017)
64 slides from Aeci's investor day presentation, Oct 24, 2017
Slide 1: AECI Plant & Animal Health Investor Day
AECI PLANT & ANIMAL HEALTH INVESTOR DAY, 24 OCTOBER 2017
Slide 2: Programme
— Welcome and introduction — Presentation: AECI Plant & Animal Health — Site visits (two groups) — Return to Erinvale — Lunch
Slide 3: Strategic Pillars
A=Cr WATER & PLANT & PROCESS ANIMAL HEALTH
Slide 4: Pillar Size
REVENUE % OF SPECIALTY CHEMICALS REVENUE FYI6 Recbn FYIG 28% 1017 R9O4/7m 1H PB %
Slide 5: Anchored in Nulandis
1 ANCHORED IN NULANDIS OAECY | Plant & Animal Health
Slide 6: Agenda
AGENDA 1 ABOUT NULANDIS 6 BULK LIQUID FERTILISER 2 MARKET TRENDS AND SEGMENTS 7 NULANDIS FOOTPRINT 3 STRATEGIC THRUSTS 8 ENTERPRISE DEVELOPMENT AND B-BBEE 4 PRECISION SCIENCES 9 SUMMARY 5 BIO-AG
Slide 7: Mission
6 MISSION Enhancing agricultural performance by UNLOCKING NATURE’S POTENTIAL
Slide 8: Fundamentals Supporting the Mission
7 FUNDAMENTALS SUPPORTING THE MISSION
Slide 9: History
8 History DEVELOPER/MANUFACTURER AGROCHEM, FOLIAR NUTRITION OA=CI good chemistry (reaten 1978 2001 owmaico | OR. 2005 20 ‘ume OWN, THIRD PARTY PRODUCTS (») Oraten cae 11 OAE=CY | Plant & Animal Health HOLISTIC APPROACH @ siocutr’ Patlifachinte thewl pasdl eae ees late eee eaten | AFRICAN EXPANSION |
Slide 10: Revenue Mix
OAE=CY | Plant & Animal Health 14% THIRD PARTY PRODUCTS RATIO OF BIO-AG TO CONVENTIONAL
Slide 11: Key 3rd Party Suppliers
10 KEY 3rd PARTY SUPPLIERS 74% 3rd party products (China)
Slide 12: Supplier Mix (%)
11 SUPPLIER MIX (%) 10 26% Own products 2 3 74% 3rd party products 26 4 5 5 6 14 7 9 9
Slide 13: Market Trends and Segments
2 MAR KET TR a | DS OAECY | Plant & Animal Health AND SEGMENTS
Slide 14: Market Trends and Drivers
13 MARKET TRENDS AND DRIVERS Consumer awareness and Big Data Food Value chain security and demands diversity in Africa Mega mergers Weather Exchange patterns rates Commodity pricing
Slide 15: Dry Land Crop Yields and Climate Conditions
14 DRY LAND CROP YIELDS AND CLIMATE CONDITIONS
Slide 16: Contributions: Winter vs Summer Rainfall Regions
15 CONTRIBUTIONS: WINTER VS SUMMER RAINFALL REGIONS
Slide 17: Global and African Agri Input Trends
16 GLOBAL AND AFRICAN AGRI INPUT TRENDS
Slide 18: Shifting Production Systems
17 SHIFTING PRODUCTION SYSTEMS
Slide 19: Strategic Thrusts
3 STRATEGIC THRUSTS OAECY | Plant & Animal Health a . “a » oe 4 ) i - ~
Slide 20: Strategic Thrusts
OAECY | Plant & Animal Health 19 stratecic THRUSTS SUPPORTED BY A GROWING AFRICAN AND INTERNATIONAL FOOTPRINT
Slide 21: The Chemical Treadmill
QNuWay" CRISIS, REACTIVE MODE CHEMICAL COMFORT ZONE: Spray out of fear’ THE CHEMICAL TREADMILL: The more you spray, the more you spray’ A=Cr LEGISLATIVE CHANGES
Slide 22: The NuWay Concept
21 tHe QNuWay concert plant Grow healthy crops Healthy plants Improve plant energy Better food quality Improve yield ot NATURAL ENVIRONMENT SUSTAINABILITY ECONOMIC VITALITY HEALTHY COMMUNITIES Care for the soil —~ Sustainable soil Healthy soil Healthy plants Environmental custodians OAECY | Plant &
Slide 23: Precision Sciences
4 PRECISION SCIENCES OAECY | Plant & Animal Health
Slide 24: Precision Technology
OAE=CY | Plant & Animal Health 23 GONuWay’ PRECISION TECHNOLOGY Boundaries and Variable Rate Variable Rate Weather/irrigation Crop Multi-spectral Yield Grid Sampling Fertiliser Planting Scouting Imagery Analysis
Slide 25: Sirrus Data and Nulandis.net
24 SIRRUS DATA AND NULANDIS.NET
Slide 26: Bio-Ag
1) BIO-AG OAECT | Plant & Animal Health f W AAA 7 he J Aa ba » sc ics Gee M4 i Wi) ; AIRE PALAIS pe — oe 4 a Levies A s ss ve na Se ae ft < Aa be apices yctoeerek ght a. ee i to Nie ie / fl) * ! 4) SK a, zy i) - \ = ; Se Tan’ NN oi " : te. 4 Var .* i 5 f 5 { " “i Pe (os Z.
Slide 27: Bio-Ag: Building a Portfolio
26 BIO-AG: BUILDING A PORTFOLIO
Slide 28: Mating Disruption Pheromones
27 MATING DISRUPTION PHEROMONES
Slide 29: Biocult Technology
16 1 18 DECEMBER JANUARY OCTOBER NOVEMBER FEBRUARY 170% North America Looking very Subject to trial and Europe Productionarea positive outcomes 2424m2
Slide 30: Bulk Liquid Fertiliser
6 BULK LIQUID FERTILISER OAECY | Plant & Animal Health
Slide 31: Bulk Liquids Capacity Upgrades
30 BULK LIQUIDS CAPACITY UPGRADES
Slide 32: Nulandis Footprint
7 NULANDIS FOOTPRINT Supported by a growing African and international footprint
Slide 33: Africa
AFRICA Images by Neil Palmer (CIAT)
Slide 34: Why Is Africa Important?
33 WHY IS AFRICA IMPORTANT? AGRICULTURAL POTENTIAL IN AFRICA Cote South Indicator d’Ivoire Kenya Zambia Ghana Nigeria Tanzania Africa Population (million) 23,7 48,5 16,6 28,2 186,0 55,6 56,9 GDP growth forecast (US$bn) 37,8 73,4 15,8 40,0 377,0 54,4 360,0 GDP growth forecast (%) 6,9 5,3 3,5 5,8 0,8
Slide 35: Why Is Africa Important?
34 WHY IS AFRICA IMPORTANT? % OF MARKET
Slide 36: African Footprint
3D AFRICAN FOOTPRINT DISTRIBUTORS LEGAL ENTITIES AGRIPARKS NULANDIS' Namibia OAE=CY | Plant & Animal Health FARMERS ORGANISATION LTD ‘Mozambique
Slide 37: South African Footprint
36 SOUTH AFRICAN FOOTPRINT
Slide 38: South African Market
37 SOUTH AFRICAN MARKET 32% OF AFRICA’S CROP PROTECTION MARKET
Slide 39: South African Footprint
A=Cr 27) LIMPOPO, MPUMALANGA, LOWVELD 32) WESTERN FREE STATE y Cs Fg 38) EASTERN FREE STATE 11) NORTHERN CAPE 16) KWAZULU-NATAL 12) SWARTLAND 9) EASTERN CAPE 17) BOLAND 25) BREERIVIER 909 SAAGENTS 187 NULANDIS AGENTS (21% OF TOTAL)
Slide 40: Infrastructure and Partnerships
39 INFRASTRUCTURE AND PARTNERSHIPS
Slide 41: People
AO peor 300 Total employees OA=Cr | Plant & Animal Health Nay PRODUCT DEVELOPMENT SALES AND SUPPORT 3O_ Rab, field officers and 187 Agents regulatory AO Sales support 6 PhDs 10 Masters 50 Gratuates
Slide 42: R&D Collaboration
A=Cr JRIGIN CSIR our future through science UV More produce. Less water. P“~ Nelson Mandela ra \7 j ¥ (Ss) Metropolitan UNIVERSITEIT VAN PRETORIA University UNIVERSITY OF PRETORIA LORAMA van taneinee TXAM & YUNIBESITHI YA PRETORIA Water scheduling technology Soil biology Formulations High-shear rheo
Slide 43: Farmers Organisation as a Springboard
42 FARMERS ORGANISATION AS A SPRINGBOARD
Slide 44: Farmers Organisation – Malawi
43 FARMERS ORGANISATION – MALAWI
Slide 45: Farmers Organisation – Agrodealer Mapping
44 FARMERS ORGANISATION – AGRODEALER MAPPING
Slide 46: Farmers Organisation – Gearing Up
45 FARMERS ORGANISATION – GEARING UP
Slide 47: Smallholder Focus – Nyonga Packs
46 SMALLHOLDER FOCUS – NYONGA PACKS NYONGA – “MAKE IT GROW”
Slide 48: Mono Dose and NuWay
OAE=CY | Plant & Animal Health AT mono pose AND NuWay
Slide 49: Agriparks
48 AGRIPARKS
Slide 50: What Are Agriparks?
OAE=CY | Plant & Animal Health 49 WHAT ARE AGRIPARKS? Katiola vo OFFTAKERS ~__ ae tie Béoumi _Bouaké nn .: _ eo a i AGRIPARK \ Nason Prk (ott eliebissou a : FUNDERS > em cousteareey ssihorn 7 ptcon ob aNb WYESTORS adh ee [aber oe eo & ho a Yamoussoukro i eommuNITY t Fanmns sn ones 8 ; on ‘Akoup¢ = M
Slide 51: International
INTERNATIONAL OAECT | Plant & Animal Health
Slide 52: Own Product Internationalisation
51 OWN PRODUCT INTERNATIONALISATION
Slide 53: Enterprise Development and B-BBEE
8 ENTERPRISE DEVELOPMENT AND B-BBEE
Slide 54: CSI and NuEra Farming
A=Cr (AX) Witzenberg Lor McLachlan HOERSKOOL GIN PALS CoaratagFeoadarion CROwING TOCETHER, Witzenberg PALS Elgin Community College HoérskoolMcLachian Buhle Academy Upskill farm workers;empower Develop studentsinscarce Provide development for Training to hecome them to become commercial skill of plan
Slide 55: Group Collaboration
OAECY | Plant & Animal Health 04 GROUP COLLABORATION Environmental Accountability AGRIPARKS NuEra FARMING AND ENTERPRISE DEVELOPMENT
Slide 56: Summary
SUMMARY OA=CI | Plant & Animal Health
Slide 57: Nulandis Activity Cycle
OAE=CY | Plant & Animal Health 9G NuLANDIS ACTIVITY CYCLE ‘Gop yet and quaty improvemonts.
Slide 58: Success Story
57 SUCCESS STORY Day 0 – Alexin sprayed at 2 litre/ha Loss of crop if Alexin had not been sprayed Day 2 – after spraying Day 5 Day 26
Slide 59: Nulandis Today
OAE=CY | Plant & Animal Health 98 NULANDIS TODAY 14% THIRD PARTY PRODUCTS RATIO OF BIO-AG TO CONVENTIONAL
Slide 60: Looking Forward
59 LOOKING FORWARD Global reach for own products 3rd party African relation- expansion ships Seed and specialised fertiliser Own product Growing pipeline NuWay
Slide 61: Site Visit Safety Induction
SITE WISIT SAFETY INDUCTION OA=CI | Plant & Animal Health
Slide 62: Safety Induction: Biocult
61 SAFETY INDUCTION: BIOCULT
Slide 63: What to Do in an Emergency
OA=Cr | Plant & Animal Health 62 WHATTODOIN AN EMERGENCY WHAT TO DO IN AN EMERGENCY
Slide 64: Thank You
THANK YOU OA=CI | Plant & Animal Health