An Established Vertically Integrated Palm Oil Production Company, Cote d’Ivoire Focussed on Growth AGM Presentation: 16 July 2015

Overview An AIM quoted vertically integrated palm oil producer in Cote d’Ivoire Revenue Generative

21,836 tonnes of CPO produced for 6 months to 30 June 2015 vs 2014’s total 9 month production figure of 14,242 tonnes

Corporate Environment

One of the only palm oil developers not in partnership or subject to takeover by a major Asian palm oil company

Market Demand

Demand for palm oil estimated to double by 2020

1,000’s of Smallholders Providing FFB

Vision to become a leading West African CPO Producer

1,900 ha of Planted Estates

100% Owned Nursery

24,000 ha Expansion Land

Vertically Integrated

Increasing Production

Production from 60 t/hr Mill

51% owner of a 60 t/hr mill palm oil project, one of West Africa’s largest

Board of Directors Andrew

25 years operational management and private equity experience in Africa and other emerging

Tillery

markets including 10 years as a CEO in Cote d'Ivoire, West Africa where he had responsibility for

Non Executive

managing a group of oil palm operations and founded a natural rubber business. Holds two

Chairman

Masters degrees from Oxford University, an MBA from the University of Chicago. Currently a Non executive director on 3 African agribusiness boards and adviser to several agribusiness investment funds in sub-Saharan Africa

Youval Rasin

Founder of DekelOil and has held senior management positions in various companies within the

Chief Executive

Rina Group, a family holding company with interests in agriculture, mining, hotels etc. Qualified

Officer

lawyer and active in Ivory Coast since 2002 with 9 years’ experience in agro-industrial projects including 7 years in the Palm Oil Industry.

Shai Kol

Co-Founder of DekelOil. CPA & MBA graduate. 13 years work experience in finance, with

Chief Financial

significant business & international exposure. former KPMG corporate finance. Financial director for

Officer

an international software company, Director of finance and business development for Yellow Pages leading fund raising and M&A activities.

Lincoln Moore

For the past 6 years Lincoln has been active in the West African oil palm industry in Liberia and

Executive

Sierra Leone including establishing and raising finance for palm oil developments. Former CFO of

Director

Sierra Leone Agriculture Ltd and former executive director of AIM listed Northcote Energy Ltd. Chartered Accountant and former senior manager at Deloitte and Touche.

Orli Arav

Orli is Chief Investment Officer (“CIO”) of Impala Energy an independent power project

Non Executive

development. Prior to the formation of Impala, Orli was the Managing Director of the Emerging

Director

Africa Infrastructure Fund (“EAIF”), a dedicated open-end commercial debt fund focused on

infrastructure projects in SSA, where she was involved in the financing of over 35 infrastructure projects in SSA (approximately US$800 million of commitments) across 16 countries. Orli has also held roles in the project finance divisions of global accountancy firms PriceWaterhouseCoopers and Ernst & Young.

H1 ‘15 - Dramatic Production Increase Total 2014 Production vs. H1 2015

• 21,836 tonnes of CPO and 3,733 tonnes of kernels produced for the six months to 30 June 2015

25,000

• 53% increase on 14,242 tonnes produced for the whole of 2014

20,000

• Dramatic increase testament to logistics solution to supply Fresh Fruit Bunches (‘FFB’) to the Mill

Production

15,000

10,000

• CPO sales of 19,184 tonnes at an average price per tonne of €617 • 3,760 tonnes of kernel sold at €183 per tonne ex-Mill • Peak harvesting season runs from March – June

5,000

0

Total 2014 Production

H1 2015

On track to significantly increase palm oil production in 2015 to over 30,000tn, the Mill’s first full year of operations

Excellent Location

Existing • Smallholder relationships • c.1,900 ha company plantations • 60t/h mill • 1M plants nursery

Expansion Plan • 24,000 ha for plantations • 60t/h mill • New nursery (subject to funding)

Advantageous location and existing infrastructure

Existing operations are located in Ayanouan, 2hrs from Abidjan’s port

Expansion land is located in Guitry, 4hrs from Abidjan’s port

Good road links to the port and to Ghana

Strategy

Immediate 1-2 Years

• Construct a palm kernel oil crushing facility by Q4 2015 • Develop a further 3,000 to 5,000 ha of company plantations in close proximity to the first mill and increase yields of smallholders’ plantations

• Commence operations at 24,000ha Guitry including new nursery and 1,000ha of estates

Medium – Long Term 2-5 Years

• Finalise first land acquisition in Ghana of 10,000ha

• Expand planting at Guitry and construct second 60tphr palm oil mill

• Commence first nursery and pilot planting in Ghana • Review new projects in Cote d’Ivoire and bordering countries

To rapidly increase production from the first project and fast track development of Guitry project

Market Opportunity Corporate Activity •

International palm oil majors currently entering or expanding in West Africa to address lack of land in Malaysia and Indonesia

•

World’s three largest palm oil companies; Wilmar, Sime Darby and Golden Agri have entered West Africa

•

Dec 2013 - KLK, one of the leading global plantation companies, has acquired a 63% interest in Liberian-based Equatorial Palm Oil at a significant premium to DekelOil

•

DekelOil is currently one of the only established, palm oil developers with contiguous land not in partnership with a major Asian palm oil company

• Palm oil is the most widely used edible oil in the world • Demand estimated to double by 2020 (World Bank) • Supply side limited by lack of land availability in traditional growth zones in Malaysia and Indonesia

Palm Oil ‘000t Benin

Production

Consumption

Balance

35

110

(75)

Cote d'Ivoire

400

270

130

Ghana

120

160

(40)

Guinea

50

75

(25)

Liberia

42

61

(19)

Nigeria

850

1240

(390)

36

44

(8)

7

90

(83)

Sierra Leone

Togo

1 of the last remaining West African palm oil developers without investment from a major

Cote d’Ivoire: An Ideal Environment •

Cote d’Ivoire has a well established palm oil industry with an estimated 250,000ha of palm oil plantations

•

Highly dominant agriculture industry provides an existing agriculture workforce and commodity trading infrastructure

•

Modern infrastructure: land, sea (largest port in West Africa), air, electricity and communication

•

Shortage of Côte d’Ivoire milling capacity for smallholders

•

The Directors believe the market is relatively fragmented with potential acquisition opportunities

•

Economy grew by 8.1% in 2013 (source IMF projection) Company

PalmCI (SIFCA, Wilmar & Olam)

No. of Mills

Hectares

Annual tons FFB

Palm oil production

12

39,000

1,107,443

250,000

SIPEFCI

2

11,035

264,083

56,778

Palm Afrique

2

7,100

295,200

59,040

SOGB

1

6,041

110,000

22,000

Total

17

63,176

1,776,726

387,818

Ayenouan Project • 60 ton/hour mill, largest in West Africa, became operational in March 2014 • Total mill site size base - c.9,000 s.q.m.

Simple CPO Processing Methods

c.14 hectare, mill floor

• At full capacity, the Mill can produce 70-75,000 tons of CPO

• An effluent treatment plant (‘ETS’) is being built by leading provider KIS Group • Kernel crushing plant currently being constructed – due to commence operations in Q4 2015 • Mill management and operations team in place

This hosts one of West Africa’s largest mills with production being optimised to drive revenues

Site Pictures

A vertically integrated, world class Mill operation in West Africa

Feedstock for the Mill Small Holder Estates

Company Estates

Relationships with 1,000’s of small holders

1,900 ha planted to date at Ayanouan, partly yielding

Estimated annual yields from small holders of 10 tn/h of Fresh Fruit Bunch

Costs to maturity: US$2,000/ha to US$2,500/ha Mature plantations in Côte d’Ivoire have a peak yield of 20-24t/h

A blend of small holder feedstock due to regional surplus supply and planted company estates which will come into maturity in the near term

Logistics • Logistics Zone Managers recruited to coordinate the delivery of fruit to collection points and Mill • Continuous planning with local cooperatives to enable the adequate and efficient delivery of feedstock • Three ‘Collection Points’ established providing multiple drop-off points for smallholders and managing congestion as trucks make deliveries for processing • The Mill’s reception area has been designed to be twice the size of those at traditional 70,000 tpa mills for efficiency purposes

• Contract signed with a subcontractor to transport fruits from the Logistics Collection Points to the Mill

Developing an effective logistics network to ensure timely delivery of fresh fruit bunches ('FFB') to the Mill via Collection Points

Social and Environment • RSPO member and certification process to commence shortly

• Majority of planting cultivated areas • Planting in communities

over

partnership

previously with

local

• Palm oil effluent treatment plant planned • All environmental permits in place • Employ over 300 staff – majority local management

Focussed on developing its projects sustainably and in line with RSPO standards

First Mill Economics at Maturity Description

Calculation

FFB Received CPO Produced

330,000 Extraction Rate – 24% Pricing €700/tn

€55.5m

PKO

Extraction Rate – 4% for Kernels and 45% for PKO (€1,000tn)

€6.0m

Animal Feed

Extraction Rate – 4% for Kernels and 45% for Kernel Cake (€180tn)

€1.0m

Total Revenue EBITDA Margin Interest Expense Tax

€62.5m 25% 10.5% on €15m 13 year zero tax exemption

Net Profit After Tax DekelOil Public Share

€15.6m €1.6m Nil €14.0m

51% Share

€7.1m

Ayenouan

Kernel Crushing Plant to Improve Profitability of Existing Operations

Expand Company Owned Planted Land to Increase Margins of Existing Operations

Guitry

Ayenouan

Expansion

Replicate Success at Ayenouan to Strengthen Balance Sheet and Build Presence

•

Construct 60tn/day Kernel Crushing Plant at existing mill site

•

Construction period of 12 months, operational by Q4 2015

•

Produce and sell both Palm Kernel Oil and animal feed at factory gate

•

Will materially increase profitability of Ayenouan project

•

Plant an additional 3,000 to 5,000 ha over the next 24 months

•

Provides future FFB input for existing Mill

•

Improves long term EBITDA Margin

•

Establish 1m plants per year nursery at 24,000ha Guitry site

•

Identical to nursery established at Ayenouan

•

Lays foundations for Guitry expansion plan

•

Proof of concept assists with accessing project funding

Current Corporate Structure Equity

€m

Debt

€m

Founder Investment – 2007

2.2

Mill Financing (10.5%, 8 years)

14.0

Siva Investment – 2010

5.0

Other bank loan (10%, 4 years)

0.8

IPO Investment – Mar 2013 (1p) Siva matchup

2.3 2.0

Line of credit

0.4

African fund (Nubuke) – Feb 2014 (1.5p) Siva matchup

0.8 0.5

Siva Capital Note (10%, only paid in preference to dividends)

4.5

Aim placing of £1.5m (1.25p)

2.0

Other Loan Notes (No interest, only paid in preference to dividends)

Total

14.8

DekelOil Public Ltd - Key Shareholders

2

21.7

%

Youval Rasin

26.3

Remaining Board of Directors and Family of CEO

13.4

Institutions, PCB’s, HNW on IPO

19.2

Nubuke African Fund

2.8

Investment Case Production

• Revenues and operating profitability achieved from production at palm oil mill • Smallholder contracts secured to provide feedstock for the mill • Three local off-take agreements to diversify sales outlets

Expansion

• Ramping up production at Ayenouan in 2015 • Plans to expand company owned planted land at both project areas to become a leading West African CPO producer • Continued assessment of synergistic project opportunities in Cote d’Ivoire and region

Location

• Cote d’Ivoire is a leading palm oil and agricultural producer in West Africa – suitable infrastructure • West African palm oil projects in strong demand by majors looking to expand production outside of Malaysia and Indonesia

Asset Backed

• 51% interest in one of West Africa’s largest CPO mills • 24,000 hectares of brownfield land, 1,900 ha of which is already planted • Land developed in partnership with community under Abusan (2 third/1 third ownership split) • Nursery capable of producing 1 million plants per annum

Support

• Increased institutional representation across shareholder register • Government support by way of 13 year tax relief across operations • Ayenouan is under a 51:49 JV with Indian conglomerate The Siva Group

Contacts DEKELOIL Youval Rasin Chief Executive Officer Mob: +972544 60467 Email: [email protected]

Lincoln Moore Executive Director Mob: +447500 090 139 Email: [email protected]