Farm investments in agricultural land in Brazil

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1 Farm investments in agricultural land in Brazil Presented by Sigg Family Office Investment narrative November 2017 Sigg Family Office

2 Disclaimer This document is not an investment invitation or an investment recommendation. Any investor interested to make similar investments must not rely on this information for investment decisions. The content in the document is anecdotal based on personal investor experience and is not corroborated by investment professionals such as lawyers, accountants or others. November 2017 Sigg Family Office 2

3 Table of contents Executive Summary Investment parameters Location and logistics Operational framework Other business headlines 6 7 Photo gallery Contact info Business case Legal framework Sigg Family Office 3

4 1. Executive Summary Sigg Family Office has, in collaboration with a co-investor and local Brazilian contacts, identified North Eastern Brazil as one of the last remaining areas where agricultural land can still be bought at a bargain in a region with strong agri parameters and immediate access to the international grain market. - The foreign parties hold combined a first investment of ha with more land close by in sight for additional investment. Brazil is a world player in the production of protein and has the lowest production cost by a wide margin compared with other major protein producers. The access to market is highly organized with world leading grain companies as buyers. - Cargill, Bunge and others Good existing infrastructure with roads, utilities and service companies in area. Vibrant farm community with a leading Agri College in nearby town Bom Jesus Land cost ~ USD per hectare virgin land. Opening cost around USD per ha. Expected investment horizon of 3 years and 50% capital uplift. Farm production is generally expected to yield above 25% p.a. on applied equity. Sigg Family Office 4

5 2. Investment parameters Simple business model in virgin land suitable for farming Vibrant farm area with easy benchmarking against existing farms Promoter invested in the area. Land purchase at very attractive entrance level Big interest in land investment from both Brazilian and foreigners Investment via Brazil SPV Unrestricted repatriation of principal investment and profit Double taxation treaties with all important countries Exit horizon of 3 years with expected 50% gain - no land improvement Exit by sale of SPV - or sale of land as preferred Possibility of agricultural operation in collaboration with promoter IRR expectation not less than 20% p.a. pre-tax if investment is converted to farming Sigg Family Office 5

6 3. Location and logistics Location Key demographics Important farm town 65 kilometers away from land opportunity. Vibrant farm community in the area with proven benchmarking. Shared meter farm runway. 35 km local roads after this main road directly to Brazilian coast, international silos and harbour. Established local roads in farm land area. Friendly business community open to investors from abroad. No material safety concern. Nearby town Bom Jesus has a meter tarmac runway. Plans for a new local airport for scheduled flights underway. Sigg Family Office 6

7 4. Operational framework Subcontractor driven operations Test area of 100 ha opened by co-investor Minimum investment in facilities and machinery Farming based on outsourcing & subcontractors Established and credible local advisors Collaboration with local agricultural college Good availability of workers and farm academics Sigg Family Office 7

8 5. Other business headlines Investment via Brazil SPV in partnership with promoter. SPV located in Sao Paulo with trusted lawyer as company administrator. Strong contact to Province Governor s office in the Piaui Province capital Teresina. Both business and social contacts in Teresina. Friendly business environment in the Province capital. Vibrant coastal town of Fortaleza with international flights from Europe only 490 km away Several daily flights between Fortaleza and Teresina. Sigg Family Office 8

9 6. VISUALS from opening of 100 ha test area (1/2) Sigg family in front of ha investment Shared farm runway Typical bush savanne in the area Clearing starts for 100 ha test farm area Progress 3 months later Progress 6 months later Sigg Family Office

10 6. VISUALS (2/2) Sigg wants to see for himself!! First planting 7 months later Soya bean crop 9 months later Healthy pods Preparing pest control Harvest time Sigg Family Office 10

11 7. Contact info. Sigg Family Office Sigg Family Office 11