An Established Vertically Integrated Palm Oil Production Company, - PowerPoint PPT Presentation

An Established Vertically Integrated Palm Oil Production Company, Cote d’Ivoire NURSER ERY PLANTED LAND 60T/HR 60 /HR MILL SMALLHOL OLDER DER PRODUCT CTIO ION EXPANSION ION LAND Invest estor Presen enta tati tion on July 2014 www ww.d .dek ekelo loil.c l.com m A AIM:DKL M:DKL

OVERVIEW Producti uction n from m 60 t/hr r Mill  An AIM quoted palm oil developer 5,000 0  51% ownership of Ivory Coast palm oil project Smallhol holde ders Provi vidi ding FFB  Producing revenues from its 60 t/hr mill, which is Vertically Integrated one of West Africa’s largest 2,000 0 ha of  Strategy to expand the Company’s existing Planted d plantation assets with the objective of becoming a Estat tates es leading West African CPO producer  Demand for palm oil estimated to double by 2020 1m plants nts pa Nurse Nu sery  Likely to attract interest from south east asian palm oil giants 26,000 00 ha Expans nsion n Land DEKEL KELOIL IL ● A VERTICA ICALLY LLY INTEGRATED PALM LM OIL PRODUCTIO CTION COMPANY Y ● JULY LY 2014

MILESTONES SINCE LISTING • First quarterly • Mill Operational • First • Commenced • AIM listing • Operations team production production • Nubuke construction • Arrival of recruited • Improvement of Investment • First CPO • Award of Mill on site • Software • 2 nd off take extraction rate Sales Effluent implementation • 1 st off take • Second hub site • First hub site Treatment Plant contract Mar 2013 A Apr-Ju Jun 2013 Jul-Dec c 2013 Feb 2014 Mar ar-Apr Apr 2014 J Jun 2014 DEKEL KELOIL IL ● A VERTICA ICALLY LLY INTEGRATED PALM LM OIL PRODUCTIO CTION COMPANY Y ● JULY LY 2014

ASSETS WELL POSITIONED IN COTE D’IVOIRE Advant ntageo geous us locati ation on and existin ing g infrastruc tructu ture re Existing ing operati ations ons are locat ated ed in Ayan anou ouan an, , 2hrs from Abidjan’s port Existing sting • 27,000 ha small- Expans nsion ion land is located ed holders in Guitr try, , 4hrs from • c.1,900 ha company Abidjan’s port plantations • 60t/h mill • 1M plants Nursery Guitry Expan pansion ion Plan Good d road links ks to to the Ayanouan • 24,000 ha for plantations port and to to Ghana • 60t/h mill • New Nursery (subject to funding) DEKEL KELOIL IL ● A VERTICA ICALLY LLY INTEGRATED PALM LM OIL PRODUCTIO CTION COMPANY Y ● JULY LY 2014

DEVELOPMENT STRATEGY Increase production as quickly as possible from the first project and fast track development of Guitry project CURREN ENT • Produce 16,000-20,000 tons of CPO in 2014 • Proof of logistics solution from smallholders • Implementation of ERP system • Diversification of offtake partner base IMMED MEDIA IATE, E, SUBJ BJECT ECT TO TO FUNDING DING (1-2 Year ears) • 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 • Construct a palm kernel oil crushing facility • Commence operations at 24,000ha Guitry including new nursery and 1,000ha of estates • Finalise first land acquisition in Ghana of 10,000ha MEDIUM DIUM TO TO LONG TERM RM (2-5 Year ears) • 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 DEKEL KELOIL IL ● A VERTICA ICALLY LLY INTEGRATED PALM LM OIL PRODUCTIO CTION COMPANY Y ● JULY LY 2014 2014

GLOBAL PALM OIL MARKET & CORPORATE ACTIVITY  Palm oil is the most widely used edible oil in Palm Oil ‘ 000t Product uction ion Consumpti tion on Balance nce Benin 35 110 (75) the world Cote d'Ivoire 300 170 130 Ghana 120 160 (40)  Demand estimated to double by 2020 Guinea 50 75 (25) Liberia 42 61 (19) Nigeria 850 1240 (390)  Supply side limited by lack of land availability Sierra Leone 36 44 (8) in traditional growth zones in Malaysia and Togo 7 90 (83) Indonesia Note: Data for ECOWAS palm oil producing countries, as of 2011 Source: USDA, 2012 RECE CENT NT CORPORA RPORATE TE ACTI TIVIT ITY Y IN WEST AFRIC ICAN N PALM LM OIL L SECTOR OR: : A SNAPSHOT  International palm oil majors currently entering or expanding in West Africa to address lack of land in Malaysia and Indonesia  Worlds three largest palm oil companies; Wilmar, Sime Darby and Golden Agri have entered West Africa  2014 - 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 DEKEL KELOIL IL ● A VERTICA ICALLY LLY INTEGRATED PALM LM OIL PRODUCTIO CTION COMPANY Y ● JULY LY 2014 2014

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:  Existing agriculture workforce  Modern infrastructure: land, sea (largest port in West  Existing commodity trading Africa), air, electricity and communication infrastructure  The Directors believe the market is relatively  The world's largest producer and fragmented with potential acquisition opportunities exporter of cocoa beans and significant producer and exporter of coffee and Compan any No. of Hectares ares Annu nual al Palm m Oil palm oil Mills ls to tons FFB product uction ion PalmCI (SIFCA, Wilmar & 12 39,000 1,107,443 250,000  Economy grew by 8.7% in 2013 (source Olam) IMF – official figures not yet available) 2 11,035 264,083 56,778 SIPEFCI 2 7,100 295,200 59,040 Palm Afrique 1 6,041 110,000 22,000 SOGB 17 17 63,176 1,776,7 ,726 387,8 ,818 DEKEL KELOIL IL ● A VERTICA ICALLY LLY INTEGRATED PALM LM OIL PRODUCTIO CTION COMPANY Y ● JULY LY 2014

AYANOUAN – HOME TO ONE OF WEST AFRICA ’ S LARGEST MILLS Smallholder fruit  60 ton/hour mill, largest in West Africa, now delivery operational as at March 2014 DKL pays price proportionate to CPO price  Total Mill site size - c.14 hectare, mill floor base - c.9,000 s.q.m.  At full capacity, the Mill can produce 75,000 tons of CPO (potential revenue of $US64m at palm oil price of $US850/tn)  An effluent treatment plant ( ‘ ETP ’ ) is being built – leading provider KIS Group  Completed recruitment of all Mill operational management and the operational team, including the Mill manager, the Mill maintenance manager and Shift Managers Simp mple e CPO Proces essin ing Met etho hods ds DEKEL KELOIL IL ● A VERTICA ICALLY LLY INTEGRATED PALM LM OIL PRODUCTIO CTION COMPANY Y ● JULY LY 2014

MILL SITE – 2014 - POST CONSTRUCTION DEKEL KELOIL IL ● A VERTICA ICALLY LLY INTEGRATED PALM LM OIL PRODUCTIO CTION COMPANY Y ● JULY LY 2014

LOGISTICS: RUNNING SMOOTHLY Devel elop opin ing g an effecti ective e logisti istics cs net etwor ork to ensure e timely y deliv ivery of fresh h fruit t bunch nches es ('FFB') FB') to the Mill via Collec ectio tion n Point nts  The recruitment of logistics zone managers has been completed to coordinate the delivery of fruits to the collection points and Mill  Undertaking detailed planning with local cooperatives to enable the adequate and efficient delivery of feedstock from local smallholders to the Mill  The first two Collection Points now operational providing multiple drop-off points for smallholders and manages congestion as trucks make deliveries for processing  The reception area at the Mill has been designed to be twice the size of those at traditional 60 tph mills for efficiency purposes  Contract signed with a subcontractor to transport fruits from the Logistics Collection Points to the Mill DEKEL KELOIL IL ● A VERTICA ICALLY LLY INTEGRATED PALM LM OIL PRODUCTIO CTION COMPANY Y ● JULY LY 2014

FIRST MILL FEEDSTOCK Compa pany Estat tates Smal all Holder lder Estat tates es  1,900 ha planted to date at Ayanouan,  Contracts with over 5,000 000 sm smal all partly yielding hol holder ers over er 27 27,000 000 ha ha of existing plantations  Costs to maturity: US$2,000/ha to US$2,700/ha, lower than West African  Estimated annual yi yield elds from small competitors holders of 8-12 12 tns tns/h /h of Fresh Fruit Bunch  Mature plantations in Côte d’Ivoire have a peak yield of 20-24t DEKEL KELOIL IL ● A VERTICA ICALLY LLY INTEGRATED PALM LM OIL PRODUCTIO CTION COMPANY Y ● JULY LY 2014

PRODUCTION AND SALES Month/s CPO Kernel FFB Extraction CPO Sales Average Production Production Processed Rate Sales Price (t) (t) (t) (%) (‘t) (US$) March 1,617 189 7,891 21 594 882 April - 5,943 1,077 24,936 23.8 4,965 936 June Total tal 7,550 1,266 32,82 ,827 5,559  AIPH Pricing achieved base on CIF Rotterdam CPO price  Operating profitability achieved in the Company ’ s first full month of operations  Three off take agreements in place, all with local refineries  By selling the CPO locally, the Company benefits from reduced transportation, insurance and marketing costs DEKEL KELOIL IL ● A VERTICA ICALLY LLY INTEGRATED PALM LM OIL PRODUCTIO CTION COMPANY Y ● JULY LY 2014