Tandou Limited

Investor Presentation June 2013

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Tandou – Overview

Holds one of the largest, most diverse, actively managed water portfolios in the southern connected Murray Darling Basin

Owns significant cropping assets with the capability of producing high quality cotton and cereal crops

Diversified income streams

Water entitlement trading and water allocation sales

Cotton and grain production

Organic lamb production

Consistent profitability and reduced earnings volatility

Corporate office in Mildura close to operating business

Strong balance sheet /low gearing

Experienced management team and workforce

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Location map Menindee, NSW

Mildura, Vic. (head office)

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Hay, NSW (Pevensey & Glenmea)

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Board Rob Woolley Guy Kingwill Anthony Abraham

Independent Chairman

CEO & Managing Director

Independent Non-Executive Director

Tandou has an experienced Board and Management Team with

proven water and agricultural capabilities, strong corporate

governance and soft commodity production expertise

Played an integral role in Macquarie Group’s expansion into Australian agriculture as the CEO and Executive Director of Macquarie Agriculture Funds Management

Remains involved with MAFM as a Non-Executive Director on a number of companies within that business

Appointed CEO of Tandou in March 2006, after commencing with the Company as CFO in June 2005

Extensive management experience through senior executive roles in Australia & with Bayer in the United States

Current Chairman of Tasmanian Forests & Forest Ind. Council and Tasmanian Pure Foods Ltd

Formerly Managing Director of Webster’s Ltd

Over 20 years corporate finance experience as a partner of Deloitte

David Boyd

Independent Non-Executive Director

David has spent more than 50 years in the Australian agricultural industry and is a former Chairman and CEO of Clyde Agriculture

Has served on the

Boards of Cotton Australia, the Australian Wool Exchange, Wool International, and Australian Wool Innovation Limited

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Tandou’s Management Team has significant experience

in the Australian agricultural sector

Pat Sullivan – Cropping Manager Joined Tandou in 1991 and Farm Manager

since 2003 Extensive experience in agricultural

management -livestock production and irrigation management

Robert Lowe - Tandou Farm Manager Started with Tandou in 1992 19 years experience in managing large, high

yielding irrigated crops, using targeted inputs, latest technologies and production techniques

Paul Martin – Pastoral Manager 15 years pastoral industry experience and

qualified Merino wool classer Moved to Dorper sheep in 2002 as livestock

Manager with one of Australia’s leading organic lamb producers before joining Tandou

Management Team Guy Kingwill – CEO & Managing Director Joined Tandou as CFO in 2005 and

appointed CEO in 2006 Extensive management experience

through senior executive roles in Australia & with Bayer in the United States

Bernie Woollard – Company Secretary Management Accountant and Company

Secretary since 2001 Over 15 years experience in accounting

and finance primarily within the agribusiness sector

Brendan Barry – Water Manager Joined Tandou in 2001 as farm agronomist

- experienced cereal and oilseed cropping Developed significant trading expertise in

the water entitlement and allocation markets since

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Business Overview

Tandou Limited

Water Operations Farming

Cropping - Tandou

Farm

Pastoral

Investment in

Entitlements

Yield from Annual

Allocations

7,000 ha cotton

3,500 ha cereal

Current target 52 GL Hold for long term Seek medium term leases Opportunistic value realisation

External sales

Transfer to Cropping Operations

187,000 ha

18,000 Dorper ewes

300 cattle 6

Cropping - Hay

1,800 ha Cotton

900 ha Cereal

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Cropping Rationale Model – Tandou sows crops when economic outlook for cropping outperforms water sales

Water - Access to significant water storages - Menindee Lakes under gravity fed irrigation

• low cost irrigation

• ability to plan up to three years in advance for cropping when lakes are full

Location - Located in a dry climatic zone allowing the production of high quality cotton

Disease Mitigation - No close neighbours reduces disease risk

Integrated - On-site cotton gin

enables tight ginning quality control to maximise production

minimises freight costs

Efficient - Consistent soil type and large field sizes allows efficient management

Experience – Team has significant large scale irrigated production experience

Scale - One of Australia’s largest cotton producers

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Ginning Annual Output

70,000 cotton bales

20,000 tonnes of cotton seed Daily capacity of up to 500 bales

Operates 24 hours/day, 150 days/year

A combination Saw and Roller gin

processing both Upland and Pima cotton

Cotton BMP certified gin Reputation of high quality ginning

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Cotton - Pricing

Cotton pricing is currently at a 12 month high

Tandou’s visibility re Menindee water, allows high cotton prices to be locked in

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Cotton – Market US is largest cotton exporter

US cotton acreage down due to lower prices last year and shift to corn/soybeans

Exacerbated by drought conditions in Texas, largest US cotton state

June 2013 - USDA cut US cotton crop by 3.6% due to Texas drought

13 million bales (17.5 million bales last year)

US cotton exports 11 million bales (13.6 million bales last year)

US Cotton area 3.4 million ha (30% less than 10 years ago)

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Water Rationale Model – Tandou sells water when economic outlook for water sales outperforms cropping

Scarce Resource & Restricted Supply - Water is an increasingly scarce resource

• no new licenses likely to be issued, without new dams

• projected environmental demand will hold 25–30% of Murray Darling Basin (MDB) water entitlements by 2019

• Australia is one of the only jurisdictions globally to invest in water entitlements

Demand – Increasing global food demand will increase demand for high value, reliable (i.e. irrigated) food production

Developing Market - Australian water market is immature and inefficient

• growing in liquidity, functionality and connectedness

• increasingly presents opportunities

• supports Tandou’s actively managed philosophy

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Water Rationale Integration & Experience –Tandou has significant water trading experience

• benefits from in-house knowledge and consumption

• can be leveraged across both water sales and purchasing

Scale & Diversity – Tandou has a significant, diverse, actively managed portfolio of water entitlements in the southern connected MDB

• largest single basin

• diversity of demand

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Tandou’s Water World (Southern Connected MDB)

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Flexibility of Tandou Model Farming and Water EBIT (pre Corporate Costs)

Notes: •Adjusted EBIT taken from Segment Note disclosure in published Financial Reports •2009 and 2010 - 12 months , 31 Dec Y/E •2011 - 6 months •2012 - 12 months ,30 June Y/E

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FY2013 Update

FY2013 EBIT est. A$8.7-9.5 million

(FY2012 A$8.5 million)

Cropping Business

Successful cotton harvest approx. 74,000 bales (10.4 bales/ha)

Excellent wheat crop of approx. 30,000 tonnes (7 tonnes/ha)

Water Business

$28 million entitlements traded

Expect this water will be replaced by Calendar Year End

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Future Opportunities

Cropping

Increase group cotton area by 20% in 2014

• Continue to optimise & increase Lake Tandou cotton area

• Take new area (Hay properties) to full cotton production

New seed technology driving yield increases

Productivity

Continue to improve ginning operations, driving down ginning costs

More bales with same overhead structure

Water

Continue to look for opportunities to realise value as we build the portfolio

Development of new products

Impact of average seasons and full environmental buyback on capital value

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Tandou - Maximising yield from water investment or cropping

- Listed investment vehicle of choice for water investment in Australia

Well positioned in the water investment sector

A large portfolio of entitlements and a number of years of profitable returns from the water

business

Tandou Farm is a valuable asset

Provides the option of profitable cropping when returns from selling water allocations

become less than those available from soft commodity production

Exposure to both water assets and soft commodities

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Contact Guy Kingwill

CEO/Managing Director P: +61 3 50186500 F: +61 3 50186599

gkingwill@tandou.com.au

Andrew Angus Investor Relations

P: +61 402 823 757 andrewangus@overlandadvisers.com.au

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Appendix

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Tandou Financial History

2011 2012

TAN Historical Summary Units

Total Sales (A$M) 38.7 52.9

EBITDA (A$M) 8.0 10.2

EBIT (A$M) 6.7 8.5

EBIT Margin (EBIT/Sales - %) (%) 17.3% 16.1%

PBT (A$M) 5.6 7.5

NPAT (A$M) 8.4 5.2

Shares million 143.1 143.1

Earnings Per Share (AUD Cents per Share) 3.9 3.6

Net Tangible Assets per Share (A$/Share) 0.495 0.529

Net Interest Cover (times) 7.3 10.2

Net Debt (A$M) 3.2 9.8

Shareholder Equity (A$M) 70.8 75.7

Net Debt to Equity Ratio (%) 4.5% 12.9%

Share Price (A$/Share) 0.40 0.42

Market Capitalisation (A$M) 57.2 60.1

P/E Ratio 6.8 11.6

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Profit for the Period

Notes: Source: Published Financial Reports 2011 was a 6 month Financial Year period

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Cropping Cotton and Wheat

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A Water Entitlement is a perpetual right to a share of water from a specified water

resource. They are exclusive, separate from land title and legally enforceable. Water

Entitlements can be bought, sold and leased.

A Water Allocation is a function of owning a water entitlement, a volume of water is

allocated to the water entitlement holder each year. This water allocation is available

for consumptive use, or sale to other water users in the market.

Transferable

Divisible

Fungible

Valued at market

Water title

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Water – Investment in Entitlements

Growth in portfolio

Diversification in portfolio

0

10

20

30

40

50

60

2009 2010 2011 2012 Target

General Security

High Security

37.9

31.8

38.8

52.0

32.4

ML

‘00

0

Nove-2011 June-2012

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Pastoral

A leading profitable producer of

prime organic lamb Western NSW

Production of 20,000 prime organic Dorper lambs for market

Why Dorpers?

a. Highly fertile and productive

b. Easy care with no shearing and crutching

c. No chemical inputs required

d. Thrive in low rain fall environment

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Contact Guy Kingwill

CEO/Managing Director P: +61 3 50186500 F: +61 3 50186599

gkingwill@tandou.com.au

Andrew Angus Investor Relations

P: +61 402 823 757 andrewangus@overlandadvisers.com.au

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