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2

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3

Innovative SectorsRising Finance, Falling Agriculture

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

19

47

19

50

19

53

19

56

19

59

19

62

19

65

19

68

19

71

19

74

19

77

19

80

19

83

19

86

19

89

19

92

19

95

19

98

20

01

20

04

20

07

(Finance+Insurance)/GDP Agriculture/GDP

Source: BEA

Finance Plus Insurance vs. Agriculture, as share of US GDP, 1947-2008

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4

Definition

Private Equity involves a variety of investmentstrategies in which the equity is not freely tradable

on a public stock market. Depending on theirinvestment goals and the size of their portfolio,investors have the option to invest in individual fundsor through a Fund of Funds.

Investing in private equity typically entails a greaterrisk than investing in public market securities. Thisis because private equity lacks liquidity, and the lock-

up period for invested capital is often seven years ormore.

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5

Definition (continued)

Categories of a private equity investment

include leveraged buyout, venture capital,growth capital, angel investing, mezzaninecapital, and others.

Private equity funds are generally organizedas limited partnerships, which are controlledby the private equity firm that acts as thegeneral partner.

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6

History

Until the late 70s the role of private equity buyingshares in private companies had been carried out

by a few wealthy families such as the Rockefellersand Whitneys. Most of it was venture capital inyoung companies.

By the late 80s private equity had grown large

enough to do LBOs such as RJR Nabisco. Today, less than one-fifth of the private equity

money goes to venture capital for early stagecompanies.

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7

Industry Size

Private Equity Fund Raising

Source: Private Equity Council

444

524

724

589 582

476

635

825

926

836

437

$587

$129$141

$228

$166$127 $115

$165

$352

$538

$341

0

200

400

600

8001000

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

# Funds Raised Aggregate Capital Raised ($B)

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8

Industry Size

Number of Private Equity Transactions: 2000-2008

Source: Private Equity Council

1,363

693 798962

1,334

2,034

2,547

2,2561,846

0

500

1,000

1,500

2,000

2,500

3,000

2000 2001 2002 2003 2004 2005 2006 2007 2008

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9

Industry Size

Approximately $234 billion of private equity wasinvested globally in 2007

In 2007, North America accounted for 71% of globalprivate equity investments (up from 66% in 2000).

2,150 PE firms worldwide, 1,040 of them are in theUS.

Private equity funds under management totaled $2.5trillion at the end of 2008. The 15% increase duringthe year was due to strong fund raising activity in thefirst half of 2008

Cumulative net profits returned to investors through2008: 1.2 Trillion.

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Top 10 Private Equity Firms

TPG Goldman Sachs Principal Investment Area

The Carlyle Group Kohlberg Kravis Roberts Apollo Global Management Bain Capital

CVC Capital Partners The Blackstone Group Warburg Pincus Apax Partners

Source: Private Equity International

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11

Venture Capital

Venture capital related investments for1995 through first half of 2009

0

1000

2000

30004000

5000

6000

7000

80009000

1995 19961997 19981999 20002001 200220032004 20052006 20072008Q22009

Years

#of

Deals

-

20

40

60

80

100

120

Billions

Invested

Source: Reuters

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12

Venture Capital

Venture capital by stage for 1995 throughfirst half of 2009

Source: Reuters

-

20

40

60

80

100

120

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

BillionsInvested

Late Stage

ExpansionEarly Stage

Startup/Seed

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Venture Capital

Venture capital average investment sizeby stage for 1995 through first half of 2009

-

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

19951997199920012003200520072009

Seed/StartupEarly Stage

Expansion

Late Stage

Source: Reuters

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14

Global VC Investment in AgriculturalTechnologies

Source: CleantechGroup, 2009

14

19

14

3

1814

18

$0.00

$50.00

$100.00

$150.00

$200.00

$250.00

2002 2003 2004 2005 2006 2007 2008

0

2

4

68

10

12

14

16

18

20

Global VC Agricultural Investment (m) # of deals

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Private Equity to the Rescue?

Following the past five periods of negative economic growth inthe U.S. (1974, 1975, 1980, 1982 and 1991), real private equityinvestment increased by an average of 94 percent during the

initial year of recovery substantially stronger than eitheroverall business investment or private investment inmanufacturing.

The number of private equity acquisitions grew by an average

of 55.1 percent in each of the five years following an annualdecline in GDP. The increased number of private equityacquisitions suggests that private equity retains access tocapital during economic downturns and initial recoveries, andthat more companies actively seek private equity funding during

tough times.

Source: Shapiro, Robert, The Role of the Private Equity Sector PromotingEconomic Recovery, The Private Equity Council, March 2009

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16

Agriculture: New Frontier for PrivateEquity Funds

Despite the hesitation in many areas, many

private equity funds remain optimistic that thefarm sector offers investment opportunities:

Emerging Markets in the East

Sustainable Agriculture in the West

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Drivers of interest?

The surge in the international price ofagriculture commodities over the last threeyears.

Speculation that food prices will stay highover the next decade due to more demand

from countries such as China and India. Sustained demand for biofuels backed by

generous subsidies in developed countries

(US, EU)Need at least 50% more calories in the next

40 years for a population of 9 billion by 2050.

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Area needed to meet demand for major

commodities in 2050 at current yields

Source: FAO, SAGE 2009

0

50

100

150

200

250

300

350

400

Millions of

Hectares

MaizeRice

SoybeanSugarWheat

Current Area Area Needed in 2050*Area needed has adirect correlation with

future yield.

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Food and Biofuel Consumption

Global Food Consumption Global Biofuel Consumption

(Quadrillion KCAL) (Quadrillion KCAL) (%)

2000 6.21 0.74 10.6

2015 (est) 7.78 1.2 13.42050 (est) 9.93 2.27 18.6

Biofuels' % of total

kcal consumption

Source: DBCCA analysis, 2009

Over the next few decades, Global food and biofuel consumption will

strongly increase.

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Areas of Investment Opportunity

Agricultural Machinery

Agricultural Risk Management and InsuranceCrop Improvement and Biotechnology

Fertilizer and other Crop Nutrients

Infrastructure Irrigation and Water-Use efficiency

Land

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Agricultural Machinery

Significant emerging demand from

developing markets such as BRIC countries,increased bio-fuel production, and the rise ofmega-farming operations.

Advancements such as high-performancespraying, harvesting, and the use of GPS.

Ag machinery that can increase output, use

less fuel, and cause less soil compaction isalso needed.

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Agricultural Risk Management and Insurance

Crop and yield insurance can help farmersmanage the volatility of prices, yields,government policies, and foreign markets.

This area is ripe for investment anddevelopment, especially in areas with harshclimates.

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Crop Improvement and Biotechnology

Biotech crops have the potential to contribute to theclosing of the production gap.

Some developed traits can be used to enhance aplants nutritional value, while others are used tostrengthen crops and boost yields by improving

plants resistance to disease, pests or harshclimates.

Advances in crop genetics and farming technologieshave helped to keep pace with growing agricultural

demand. Further investment is needed to continue increasing

yields, reducing costs (water and fertilizer inputs),

increasing productivity, reducing pollution.

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Fertilizers and Crop Nutrients

In areas of low soil fertility, fertilizers are used tosupplement plant nutrition.

In 2006, 170 million tons of fertilizer were placed onagricultural fields.

Once nitrogen leaves the field, it can be extremely

harmful to people and the environment. Investment is needed to decrease the negative

externalities of fertilizer use, while increasing theavailability of low-impact, high efficient fertilizers inlow productivity areas.

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Infrastructure

In order to raise productivity acrossagricultural regions, significant investmentmust be made into the infrastructure ofagriculturally productive regions.

While infrastructure development takes time,leading companies in supply chainmanagement in developing countries, andemerging economies, have capitalized on thefragmentation of inefficient agriculturalsystems.

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Irrigation and Water-Use efficiency

Irrigation is one way to ensure that crop waterrequirements are met

While only 18% of croplands are irrigated,40% ofcrop production comes from those lands.

The extent of irrigation has grown markedly.

In a hotter world, the ability to provide sufficientwater for crop production will be a major challenge.

Investment is needed to:

Increase crop production from same amount of water Maintain the same production from less water

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Land

As the world's population grows, the supply of agricultural landaround the globe diminishes. In the U.S. alone, while half of the2 billion acres of the country's land is working agricultural land,

every minute of every day, two acres of farmland are beingtaken out of production and turned to other uses; in particular,development.

Each year, globally, some 12.3 million to 19.7 million acres offarmland, out of a worldwide total of 3.7 billion acres, falls fallow

because of "deteriorating quality." Available, quality, agricultural land is increasingly hard to find,

and will be required to be more productive.

By the end of August 2008, the average price of cropland in theU.S. over the prior year had increased some 13%, doubling in

the decade from $1,340 an acre in 1998 to $2,700 in 2008.

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Agriculture Land Value 2000-2009

Source: USDA-NASS

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Recent Agribusiness Deals

Source: Capital IQ

Year Target Buyer/Investor Size ($MM) Business

2009 Converted Organics Iroquois Capital NA Fertilizers

2009 Val Nantais IDIA Capital Investissement 17 Produce/Packaging

2008 ECOPEX SEAF NA Hazelnut Processing

2008 Nuziveedu Seeds Limited The Blackstone Group 78 Seed

2008 VitAG Corporation Denham Capital Management LP 60 Specialty fertilizers

2007 Asian Dhall Industries Ltd SAIF Partners 8 Food Ingredients

2007 The Egyptian Fertilizer Co. A consortium of investors, led by Abraaj Capital 1,900 Fertilizer

2005 NAU Country Lightyear Capital NA Crop Insurance

2002 Provimi SA PAI Management and CVC Capital Partners Ltd 797 Animal Feed

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Agribusiness Areas of Interest

Health & Wellness Healthy Oils (Omega 3 vs. Omega 6)

Natural, Organic and Sustainable Non-GMO Hormone Free

Developing markets

Use of hybrids Improved cultural practices

Technology GPS (Precision farming)

Irrigation Soil Nutrients

Land

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Agribusiness Areas to Avoid

Plant-made pharmaceuticals

Big pharma doesnt want

Biofuels

Too much uncertainty around government policy.

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AgriCapital Overview

An investment bank that works exclusively inagribusiness & food

Founded in 1983 to meet the needs ofagribusiness not being met by the

investment banking community

A member of the National Association of

Securities Dealers (NASD

) and aRegistered Broker Dealer

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AgriCapital Services

Negotiate mergers, acquisitions &divestitures

Arrange equity and debt financing

Advise on valuations, render fairnessopinions and general corporate financeprojects

A i b C

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Other Sectors

8%

Food

Production &

Marketing

8%Animal Health

& Nutrition

20%

Inputs - Seed,AgroChem &

Other

64%

Since 1983 AgriCapital has been engaged in some 450

assignments on behalf of approximately 300 agribusinesses

Assignment Type

M&A accounts for approximately 80% of $ volume

Assignment Sector

Assignments by Category

M&A

49%Consulting

41%

Financing

10%

35

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Contact Information

AgriCapital Corporation

1410 Broadway, Suite 1802

New York, NY 10018

Telephone: (212) 944-9500

Facsimile: (212) 944-9525

www.agricapital.com