INTERNATIONAL SUPPLY CHAIN

PLATFORM
PHASE 1
BRASIL ASIA
WORKING DRAFT
October 18, 2013

PREFACE
Simple concept
Sustainable and successful Supply Chain models have
been in existence for a long time. They existed prior to
the establishment of those internationally well known
companies that dominate this market space today.
What is complex are the different components that
make up the Supply Chain and the key is the proper
alignment of them and to bring them online in a
synchronous manner.

INTERNATIONAL SUPPLY CHAIN PLATFORMS

Noble is committed to building sustainable product flows of bulk

commodities that generate long-term value and equity returns. We
manage a diverse and diversified portfolio of agricultural, energy
and hard commodity products supported by integrated sourcing,
marketing, processing, financing and transportation operations. We
have developed industry-leading expertise in managing the risks
that are inherent to our business.

Our competitive strengths, together with our long-term strategy and

our ability to adapt and retain flexibility, continue to position the
Group as an industry-leading global player of today and the future.

The ADM Way explains who we are as a Company and what we are here to do. It
describes what we want to be in the future and what we will do to achieve that aim.
It expresses what we value, what we focus on, and what is important to us.It
creates a common understanding for all colleagues and for those who interact with
us. At the heart of our Company is our vitalpurpose:To Serve Vital Needs
We fulfill this purpose by connecting the harvest to the home and transforming
crops into products that serve vital needs for food and energy. We know that our
purpose is noble, our work is essential, and we find meaning and satisfaction in
serving vital global needs.
Because the need for food and energy is both vital and growing, we must look
ahead, plan and grow.

Our vision is to be the most admired global agribusiness.

Creating value. Growing responsibly. Serving vital needs.

At Olam, the end game for developing good corporate strategy is to make
our business more valuable by establishing clear pathways for sustainable
profitable growth that helps build fundamental intrinsic value.

Over the years, we have performed consistently across both economic

and commodity cycles. This success is due in part to a diversified and
well-balanced portfolio of 20 agricultural commodities in 65 countries, and
in part to our participation in this industry as an integrated supply chain
manager. We focus mainly on food products because they are inherently
more recession-resistant, a strategy which continues to be at the heart of
our plans to deliver consistent financial performance over time.

Wilmars business activities include oil palm cultivation, oilseeds

crushing, edible oils refining, sugar milling and refining, specialty
fats, oleochemicals, biodiesel and fertilisers manufacturing,
consumer pack edible oils processing and merchandising, soy
protein manufacturing, rice and flour milling, and grains
merchandising.
Our business strategy is founded on an integrated business model
which encompasses the entire value chain of the agricultural
commodity processing business, from origination, processing to
branding, merchandising and distribution of a wide range of
agricultural products. In addition, we have our own fleet of vessels
serving an extensive distribution network of over 50 countries.
Our business model enjoys lower cost due to economies of scale,
2
integration, logistical and distribution advantages, and superior
market intelligence.

DEMOGRAPHICS - SOYA
Top 10 Producers, Consumers, Exporters, and Importers 2011
Producers
Rank Country
Quantity

Consumers
Rank Country
Quantity

Million Tons
1
2
3
4
5
6
7
8
9
10

United States
Brazil
Argentina
China
India
Canada
Paraguay
Bolivia
Ukraine
Russia

83.2
65.5
41.0
13.5
11.0
4.2
4.0
2.2
2.2
1.7

Rest of World

7.5

Total

236.0

Exporters
Rank Country

Million Tons
1
2
3
4
5
6
7
8
9
10

China
USA
Brazil
Argentina
EU
India
Mexico
Japan
Indonesia
Russia

Rest of
World
Total

70.8
48.8
39.5
37.8
12.4
11.2
3.6
3.0
2.6
2.4

Quantity

Importers
Rank Country

Million Tons
1
2
3
4
5
6
7
8
9
10

USA
Brazil
Argentina
Paraguay
Canada
Uruguay
Ukraine
China
S Africa
Croatia

36.7
36.7
7.8
3.1
2.8
1.6
1.3
0.3
0.1
0.0

21.9

Rest of World

253.8

Total

Quantity
Million Tons

1
2
3
4
5
6
7
8
9
10

China
EU
Mexico
Japan
Taiwan
Indonesia
Thailand
Egypt
Vietnam
Turkey

57.5
11.0
3.4
2.7
2.3
2.0
1.9
1.6
1.2
1.1

0.2

Rest of World

5.5

90.5

Total

90.1

Source: Compiled by Earth Policy Institute from U.S. Department of Agriculture, Production, Supply and Distribution, electronic database, at
www.fas.usda.gov/psdonline, updated 10 August 2012.

DEMOGRAPHICS - SOYMEAL
Production

2009/10

Domestic Consumption
China
37,546
European Union
30,359
United States
27,795
Brazil
13,000
Thailand
3,613
Mexico
4,160
India
2,570
Japan
3,900
Indonesia
2,527
Vietnam
2,600
Iran
2,467
Russia
1,874
Korea South
2,420
Egypt
1,725
Canada
1,999
Other
22,175
Total
160,730

2010/11

43,382
30,952
27,489
13,750
3,775
4,340
2,900
3,844
2,784
2,975
2,550
2,181
2,336
1,980
1,987
23,305
170,530

2011/12

47,435
29,960
28,621
14,250
4,153
4,370
3,330
3,840
3,218
3,230
2,500
2,365
2,265
2,060
2,060
23,678
177,335

2012/13

49,823
27,668
26,399
14,473
4,350
4,225
3,702
3,585
3,430
3,450
2,700
2,532
2,260
2,127
1,940
24,494
177,158

Aug
2013/14

52,552
28,932
27,397
14,800
4,550
4,435
4,070
3,700
3,650
3,500
2,675
2,600
2,344
2,125
2,025
25,677
185,032

Sep
2013/14

52,945
28,932
27,170
14,800
4,550
4,435
4,070
3,700
3,650
3,650
2,675
2,600
2,344
2,125
2,025
25,697
185,368
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DEMOGRAPHICS - SOYMEAL
Production
Imports
European
Union
Indonesia
Thailand
Vietnam
Iran
Japan
Philippines
Korea South
Mexico
Peru
Other
Total

2009/10

20,881
2,507
2,513
2,577
1,524
2,106
1,719
1,737
1,209
1,072
15,219
53,064

2010/11

21,815
3,069
2,318
2,545
1,742
2,208
1,972
1,658
1,500
1,059
16,654
56,540

2011/12

20,939
3,278
2,928
2,462
2,192
2,282
1,833
1,571
1,548
1,113
16,944
57,090

2012/13

18,100
3,500
3,000
2,580
2,600
2,000
1,925
1,625
1,250
1,150
16,678
54,408

Aug
2013/14

20,100
3,600
3,200
2,470
2,400
2,230
2,050
1,700
1,480
1,250
17,420
57,900

Sep
2013/14

20,100
3,600
3,200
2,600
2,400
2,230
2,050
1,700
1,480
1,250
17,520
58,130

TARGETED PARTICIPANTS

THE GROUP ITAQUERE IS MORE THAN 27 YEARS IN THIS MARKET,

WORKING IN AGRICULTURE (SOYBEAN, COTTON, CORN, SORGHUM,
RICE, SESAME ETC.), LIVESTOCK, POWER GENERATION, REAL
ESTATE, GENERAL STORES BENEFICIADORA AND COTTON SEEDS.
EVER PRIORITIZING THE DIVERSIFICATION AND QUALITY OF
PRODUCTS AND SERVICES PROVIDED

PT JAPFA COMFEED INDONESIA TBK IS ONE OF THE LARGEST AND

MOST INTEGRATED AGRI-FOOD COMPANIES IN INDONESIA. ITS
CORE BUSINESS ACTIVITIES INCLUDE ANIMAL FEED
MANUFACTURING, CHICKEN BREEDING, POULTRY PROCESSING AND
AQUACULTURE FARMING.
THE COMPANYS OUTSTANDING COMPETITIVE ADVANTAGES ARE
VERTICAL INTEGRATION AND ECONOMIES OF SCALE. BY LINKING ITS
UPSTREAM AND DOWNSTREAM OPERATIONS, IT IS ABLE TO
GUARANTEE SUPERIOR QUALITY OUTPUTS AT EVERY LEVEL - FROM
FEED TO VALUE-ADDED FOOD PRODUCTS.

MULTI EXPORT COMISSRIA DE DESPACHOS LTD. WAS CREATED IN 1980

IN SO PAULO. FROM THE START OF ITS ACTIVITIES IN THE INDUSTRY IT
HAS EXPERTLY PERFORMED TRANSACTIONS IN FOREIGN TRADE AND
FOR THAT MAKING USE OF THE MOST ADVANCED TECHNOLOGY.

IN 2004, MULTI EXPORT JOINED CENTRO LOGISTICO DE EXPORTAO

(CELEX) (WWW.CELEX.ORG.BR), A NON-PROFIT ORGANIZATION WHOSE
MISSION IS TO INCREASE EXPORTS BY MICRO, SMALL AND MEDIUM
SIZED COMPANIES IN THE REALM OF FOREIGN TRADE. AS A PARTNER OF
THE SO PAULO STATE GOVERNMENT, CELEX EASES ACCESS TO PUBLIC
SERVICES AND ALSO TO PRIVATE ONES INVOLVED IN THAT ACTIVITY;
PROMOTES DOMESTIC COMPANIES ABROAD AND OFFERS LOGISTICS
SUPPORT NEEDED FOR THE GATHERING OF INFORMATION,
ORIENTATION, COURSES AND TRAINING GEARED TO GROWTH WITHIN
THE SECTOR.
IN 2005, UPON GETTING A CONTRACT FOR PROVIDING SERVICES
EXCLUSIVELY TAILORED FOR CUSTOMS CLEARING AND OUTSOURCING
OF FOREIGN TRADE MANAGEMENT, MULTI EXPORT INCREASED
SIGNIFICANTLY ITS MARKET SHARE. OUTSOURCING, BASED IN THE
TRADITIONAL CONCEPT OF THAT ACTIVITY, BECAME A SPECIALTY OF
MULTI EXPORT.

MULTI EXPORTS TECHNICAL WORKFORCE, CURRENTLY MADE OF OVER

100 HIGHLY QUALIFIED AND EXPERIENCED PROFESSIONALS, IS ALWAYS
ACTIVE DUE TO THE DYNAMIC NATURE OF THE BUSINESS TYPICAL OF
CUSTOMS CLEARING. RELENTLESS IN ITS SEARCH FOR UPDATING AND
INNOVATING, TARGETING IMPROVEMENTS IN STRUCTURE, AS WELL AS
RAISING THE STANDARDS OF SERVICES RENDERED, MULTI EXPORT WAS
CERTIFIED IN 2008 BY THE ISO 9001:2000 SYSTEM OF QUALITY
MANAGEMENT.

PARTICIPANT DATA

RELEVANT DATA RE PRODUCTION CAPACITY, STORAGE CAPACITY,

EXISTING EXITS

RELEVANT DATA RE LICENSES, TRANSPORT, COSTS

RELEVANT DATA RE PURCHASE VOLUMES, SOURCES, DELIVERY

PORTS, COMPETITIVE PRICING

PARTICIPANT CONTRIBUTIONS

WHAT SPECIFIC
CONTRIBUTIONS INTO THE
VENTURE?

WHAT SPECIFIC
CONTRIBUTIONS INTO THE
VENTURE?

SCOPE & ENGAGEMENT

To begin building an International Supply Chain Platform that facilitates
sourcing bulk commodities and supplying to high growth and demand markets
in Asia. From prior discussions, there exists a collective desire of identified
parties to create such a supply chain. The Platform once created can be
replicated for inclusion of additional participants.

Supply Chain
Platform

Origination

Processing

Storage

Logistics

Finance

Market

Local Funding

EXECUTION
Given our current advantage, the most efficient manner to execute a Supply
Chain plan is to organize ourselves:
Japfa

Outright Contract

AWHK
Operating
Company

Brasil Banking
Platform
Brasil Registered
Company
Manages operations,
producers, logistics
and other aspect
local to Brasil.
Receives Service
Fees generated from
deals flowing thru
the Supply Chain
Platform.
Ownership : Grow,
Edgeware and
AWBAL

Brasil NEWCO

Cross Ownership

Co Ownership

Hong Kong

Co Ownership

Brasil
JV

Grupo
Itaquere

Platform connector to
local participants that will
be part of the
International Supply Chain
Platform.

HK Banking
Platform

HK Registered
Company
Manages Client
relations, Asian
marketing, logistics
and other aspect
local to Asia.
Receives Service
Fees generated from
deals flowing thru
the Supply Chain
Platform.
Ownership : Grow,
Edgeware and Brasil
NEWCO

Multi Export

10

ECONOMICS
To Be Determined based on identifying what each participant
will bring into the venture:

Supply Costs
Logistics/Storage
Shipping
Banking
Legal
Exit Price
Operational Costs
Hedging Costs

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