Boundary Bend Limited

‘Australia’s premier olive company’

Presentation

April 2016

https://www.youtube.com/watch?v=FYW4x

4i-B7Q

Who are we?

Australia’s largest and most awarded olive grower and producer of olive oil

One of the largest single owners of olive groves in the world (2.4m tress on 25,000 acres fully

irrigated with computerised drip irrigation)

Overwhelming share of Australia’s total olive oil production from owned groves (65% in 2014)

#1 and #2 market share for Australian produced extra virgin olive oil (Cobram Estate and Red

Island)

Largest exporter of Australian olive oil (65% by volume)

Most awarded Australian olive oil brand including unprecedented most successful exhibitor at

New York International olive oil show every year for the last 3 years.

Australia’s #1 olive oil company

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Our integrated business

Location of BBL Operations

Boort : 2,569 ha grove and processing plant

Boundary Bend: 2,673 ha grove and processing plant

Wemen: 833 ha grove

Maqtec: Olive harvester manufacturing (leased site)

Corio – nursery, bottling, storage, laboratory and head office

South Bank: Marketing/Cobram Estate office (leased site)

0% 0% 11% 11%

27%27%

38% 39%

50% 45%

54%59%

57%

68%62%

67% 67%

1% 2% 2% 2% 2%

11% 12%14%

18% 18% 18% 18% 17% 17% 17% 17% 17%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Par

tici

pat

ion

in t

he

Au

stra

lian

oliv

e in

du

stry

(%

)

Year

Evolution of the participation of Boundary Bend Ltd groves in the Australian olive industry both by area and by production

BBL production share

BBL area share total industry

Modern Olives Nursery

• Largest commercial olive nursery in Australia.

• Supplies over 50% of the olive tree market in Australia.

• Capacity to produce more than 1M trees/year.

• Exports to Peru, Argentina, and South Africa.

Harvesting

• Boundary Bend has pioneered over-the-row mechanical harvesting with the development of the ‘Colossus’.

• Successful mechanical harvesting is critical to our business.

• We currently have 20 Colossus harvesters.

Harvesting

Processing

• BBL is the largest manager of processing plants in Australia

• In 2015 we processed over 77,000 tonnes of quality olives to produce 13.8m litres of olive oil.

Processing

Processing

Modern Olives Technical & Laboratory

• Modern Olives is the only specialised olive oil laboratory in Australia.

• It holds IOC, ISO, NATA and AOCS accreditations.

• Modern Olives is the leading provider of technical advice in Australia as well as O/S (South Africa, Argentina, Peru).

Bottling and Packaging

• High speed vacuum filler can fill 12,000 bottles per hour.

• Volumetric filler has the flexibility to fill a range of bottles, tins and PET bottles.

Marketing

• BBL is a major supplier of premium EVOO to Australian customers and exports to 15 countries including the USA, Canada, Spain, Italy, France, UK and Brazil.

• Boundary Bend markets approximately 80% of Australia’s total olive oil production.

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Cobram Estate sales evolution

-

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

2001/2 2002/3 2003/4 2004/5 2005/6 2006/7 2007/8 2008/9 2009/10 2010/11 2011/12 2012/13 2013/14

A$

A$

BBL purchased Cobram Estate

brand

Cobram Estate 4-year average price premium over imported olive oil is 39% ($4.08 per litre)

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4.00

5.00

6.00

7.00

8.00

9.00

10.00

11.00

12.00

13.00

14.00

6 Months To17/07/11

6 Months To15/01/12

6 Months To15/07/12

6 Months To13/01/13

6 Months To14/07/13

6 Months To12/01/14

6 Months To13/07/14

6 Months To11/01/15

$/L

Historical average retail sales price per litre

Total Cobram Olive Oil EU Olive Oil

2014 average premium 43%

($4.86/L)

Source: IRI Aztec 2015

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Olive oil is the oil obtained solely from the fruit of the olive tree.

View of an oliveDetail of cells in the olive flesh; Fresh olive oil

What is olive oil?

Active constituents in Extra Virgin olive oil

Premium EVOO is rich in the following constituents:

• Phenolic compounds (i.e. Hydroxytyrosol, tyrosol and oleuropein derivatives)

• Mono-unsaturated fatty acids (i.e. oleic acid)

• α-tocopherols

• Squalene

• Oleocanthal

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COOKING OIL COMPARISON CHART Based on analysis performed on standard supermarket products by ISO 17025 accredited laboratory

*Composed of refined olive oils and virgin olive oils. Cobram Estate Extra Virgin olive oil is the natural juice from the olive. No chemicals or

supplements are added.

1000

900

800

700

600

500

400

300

200

100

AUSTRALIAN

EXTRA VIRGIN

OLIVE OIL

OLIVE OIL

(EXTRA LIGHT

AND PURE)

RICE BRAN OIL

VEGETABLE OIL

CANOLA OIL

VIRGIN COCONUT

ANTIOXIDANTS

(POLYPHENOLS)

mg/kg

POSITIVE HEALTH ATTRIBUTES - ANTIOXIDANTS

EVOO & Other Cooking Oils

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Source: http://www.oliveoiltimes.com

InnovationCobram – Popup pourer Red Island – squeezable PET

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The NEW easy to use squeeze bottle has an innovative non drip pourer which enables to

the consumer to use Extra Virgin Olive Oil for all their

cooking needs (stir fry, drizzle, BBQ etc).

Made in recyclable plastic, the product is light in weight and

will look great on your dinning table when friends

and family are over.

Available in 500ml and 1L.

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EVERY OLIVE MATTERS to us and our customers.

Global oil market?

Sources: International Olive Council. 2015; AOA; and Modern Olives.

Key Reasons for Success

• We have created significant advantages and barriers to entry over any new entrant to the olive industry due to:

– our systems, knowhow and people,

– the high investment cost ($350m)

– long lead time to full yields (8 years).

– The strength of the team we have built allows us to continue to develop and evolve, and to monitor, analyse and review all aspects of our operations, thereby ensuring cost effective, practical solutions and consequently a significant competitive advantage.

BBL groves, on average, produce the highest yielding, highest quality olive oil at the lowest cost of production.

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Key Reasons for Success

Technology and innovation are two driving forces for the operation at BBL groves. During the past twelve years, BBL has developed processes from within that have become the Global industry standard in olive oil production.

• Introduction and evaluation of more than 20 new olive varieties into Australia.

• Pioneered the “Colossus”: a mechanical olive harvester that is a world leader with 50 harvesters globally.

• First groves in the world to develop and perform assisted pollen distribution by designing equipment to harvest pollen in years of high flowering, store the pollen and then distribute the pollen when needed to increase fruit set and yields.

• Trialled and developed fruit loosening agents and application methodologies to assist with harvest efficiencies.

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Cont.• One of the first groves in the world to develop an IPM strategy for black

scale by releasing natural predators.

• First processing plants in the country to incorporate near infrared technology as part of the quality and production control process.

• First processing plant in the world to experiment with large scale ultrasound to break up and heat pomace prior to processing, enhancing olive oil processing speeds and yields.

• First processing plants in Australia to initiate experimentation with oil processing aids such as talc and enzymes.

• First processing plants in the country to install pit removal systems for treatment of waste products and generation of renewable energy.

• Our laboratory led the evaluation of the potential use of pyropheophytinsand diacylglycerols for olive oil quality testing before it was incorporated in the official Australian Standard.

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Our Staff qualifications?

• Farm management (6)

• Ag Science (6)

• Food science and food technologist (6)

• Mechanical engineering (7)

• Accounting / finance / Ag Economics (5)

• Sales and Marketing (6)

• PR, logistics, general management, HR, QA,

purchasing, Agribusiness, equipment operators,

construction engineer, farm hands, labourers, IT

personal, laboratory technicians.

• It is a real and needed industry (not just a service provider)

• As food demand increases the profitability will move from middle men to farmers.

• Watch this space…in the words Jim Rodgers (one of the worlds most successful fund manager) “farmers will soon be driving Lamborghini’s not Wall St bankers!”

• http://edition.cnn.com/videos/business/2014/08/26/spc-future-finance-farming-jim-rogers.cnn/video/playlists/intl-future-finance/

• Profitability attracts Investment fund managers to farms/food producers who don’t know how to operate them….therein lies the opportunity for the next generation of students. Don’t fall into the trap of advising students otherwise.

What makes the future of AG so exciting