EBG Capital

Environmental Investments

Global Farmland Fund

September 2009

Summary

Strong long term fundamentals driven by rising and wealthier population,
increasing protein consumption and biofuels demand combined with supply
constrains fueled by decreasing land and water availability

Farmland investments have attractive risk / return features with stable cur-
rent income from agricultural production and upside from land appreciation

Unique, secure add-on to real estate investments - appropriate in envi-
ronment of economic and political uncertainty, financial market crisis and
rising long term inflationary pressures

Fund will invest in countries with limited political risk and leverage on re-
gions (“low cost producers”) that will likely benefit from global changes in
the agriculture markets

Globally diversified portfolio of row / permanent crop farmland and dairy
farm investments. Large diversification by manager, production, geogra-
phy and style targeting IRR of 8-10%

Ideal timing: There are only a limited number of attractive, investable farm-
land assets and credible, experienced asset managers – these are more
accessible now and at better terms
 EBG Capital
Environmental Investments

Why invest in farmland?

Excellent returns with enhanced portfolio diversification and quality:

o Annual returns for farmland investments historically between 7% – 9%
o Low historical correlation with other asset classes
o Increases returns of overall portfolio while reducing risk
o Inflation hedge – wealth preservation
o Tangible investment that provides real assets: land and commodities

Historical asset class risk/return profile Farmland correlation with other asset classes

18%
US Equity Inflatio n 0,54
15%
Commo dities
12% B o nds (0,46)
US Treasury
9% B o nds Farmland
Sto cks (0,10)
6% Real Estate

3% Cash Real Estate 0,22

0%
2% 4% 6% 8% 10% 12% 14% (0,6) (0,4) (0,2) 0,0 0,2 0,4 0,6
A nnual Return
Note: Relating t US market between 1945 and 2006 Source: Journal of real estate portfolio management, Nov 05
Source: Ibbotson, NCREIF, S&P500, David Parst

Long term commodities prices increase driven by economic fundamentals

o On the demand side, rising and wealthier population

o Increasing protein consumption and biofuels demand
o On the supply side, decreasing land availability and productivity
o Water-driven supply constraints and rising input costs
o Global warming / extreme weather events

Global wheat and corn consumption Per capita arable land and water availability

2200 50% 0,6 100

World co nsumptio n
Arable land per capita
World sto cks 40%
1900 Water avail. per capita 75
0,4
30%
1600 50
20%
0,2
1300 25
10%

1000 0% 0,0 0
1980 1985 1990 1995 2000 2005 2008 1950 1970 1990 2010 2030

Source: USDA, 2009 Source: Faostat, WHO, 2008

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 EBG Capital
Environmental Investments

Global Farmland Fund maximizes exposure to investment case

Returns strategy based on commodity

price increases, productivity enhance-
ments, and capital appreciation of un-
derlying farmland assets

Vehicle can be set up to mimic bond-

like investment with annual dividends
between 4% and 6% from year one

Direct investments in farmland combine high exposure to investment case with reduced
correlation to markets and commodities volatility

Investments selected on basis of macro agriculture trends, countries´ comparative ad-

vantages and tested operational management models

Initial focus in USA & Canada, Australia, New Zealand and Brazil/Argentina to limit po-
litical/sovereign risk and leverage on regions that will likely benefit from global changes
in the agriculture markets

USA & Canada Australia

 Very large and efficient agricultural sector  Near large, rapid growth Asian markets
 Solid export record and good access to Asian  Broad, technologically advanced agricultural
markets markets

Brazil New Zealand

 Large domestic market and solid export record  Solid export record and near Asian markets
 Large agricultural markets, with room for yield  Relatively small agricultural market base, but
improvements very efficient

Potential for not accounted additional cash flows from carbon markets and environ-
mental related services

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 EBG Capital
Environmental Investments

Solid and tested investment strategy and service

Fund with tailored portfolio of managed accounts, top-tier funds and select co-
investments

Globally diversified portfolio of row / permanent crop farmland and dairy farm invest-
ments. Large diversification by manager, production, geography and style

Direct Co - Dairy and

So uth
Invest. a) M eat
A merica
20% 30% Ro w No rth
20%
Cro ps A merica
40% 40%

A ustralia
Funds / P erman. and New
M anaged Cro ps Zealand
A cco unt. 30% 40%
80%

Early-mover advantage and EBG Capital’s network / local partner insight to capture
unique investment opportunities and better information

EBGC’s flexible and hands-on approach enables to take advantage of regional opportu-
nities, attractive entry pricing and turn around situations

Range of farmland operating models: rent from farmers, rent + % farmer revenue and
self-operated

Preference for low leverage at fund level

Manage downside risk by employing environmentally-benign integrated farm manage-

ment techniques and social standards

Local investment managers selected based on deliberate, methodical and rigorous in-
vestment process with multi-party on-site due diligence and monitoring

Strategic and tactical asset alloca-

tion, as well as structure, may be
geared to fit specific investor prefer-
ences

EBGC’s approach allows to compare

wide range of transactions, act op-
portunistically and build fully diversi-
fied portfolio

Superior monitoring and reporting

services based on sector best prac-
tices

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 EBG Capital
Environmental Investments

Terms
Target Return: USD 8-10 % p.a.
Size & Term: Target USD 100 - 350 Mio. 8 years, extension 2 + 1 year
Closing: 1st closing [ ] December 09, 2nd closing [ ] March 10
Fees: up to 2 % Management Fee; 10% Performance Fee above 6%, HWM
Fund Domicile: [tbd]
Advisory Board: Comprising major investors
Additional Provisions: Key man provision
Reporting: Annual audited accounts, quarterly manager report

EBG Capital provides unique cross-disciplinary expertise, insight and rela-

tionships needed to create alpha in environmental markets

Highly experienced team of five senior professionals with background in agriculture, al-
ternative investments, corporate finance and commodities research

Team “was there” long before the space got hot, with decades of experience in envi-
ronmental finance and sustainability globally, and a profound knowledge of agriculture,
timber and carbon

Outstanding global network including scientists, supranational organizations, sector ex-

perts, PE funds and investors -- utilized for deal sourcing, privileged manager access
and extremely rigorous diligence

Expertise Experience Network Commitment

Long term Cutting-edge, tailored

economic alternative investment solutions
fundamentals
in the environmental space
MASDAR Cleantech Strategic Collaboration Partnership Agreement
Fund (US$ 250m) Cleantech Group Gold Carbon Fund
Environmental
markets
specificities
September 2006 October 2007 January 2008
Partnership Agreement Partnership Agreement
Global Farmland Fund Global Timber Fund
Post downturn
investment
EBG Capital
trends EBG Capital
April 2009 June 2009

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 EBG Capital
Environmental Investments

Contact
EBG Capital AG, Lavaterstrasse 40, CH-8002 Zurich, Switzerland

Ralph Kretschmer Dr. Bernd Schanzenbächer

Managing Partner Managing Partner
Ralph.kretschmer@ebg-capital.com bernd.schanzenbaecher@ebg-capital.com
+ 41 44 586 05 35 + 41 44 586 63 72

Important Legal Information - Disclaimer

This document was produced by EBG Capital and is for information purposes only. It is not intended as investment advice and under no cir-
cumstances is it to be used or considered as an offer to sell, or a solicitation of an offer to buy, any security or a recommendation to buy or sell
any security. EBG Capital makes no representation or warranty, express or implied, as to the accuracy or completeness of the information con-
tained herein and shall not have any liability for the information contained in, or any omissions from, this document. Neither this document nor
any copy thereof may be sent or taken into the United States, or distributed in the United States or to any U.S. person.

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