Sector Management

Vietnam, December 6th 2016

Indonesia Aquaculture Industry

Rabobank Group & Rabobank IndonesiaI

Rabobank Group & Rabobank IndonesiaI

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Rabobank Group presents in 40 countries across the globe

40 countries F&A focus

Toronto

New York

Mexico City

Sao Paulo

Buenos Aires SydneySantiago

Willemstad

Calgary

Washington DC

Chicago

AtlantaDallas

El Centro

San Francisco

Perth

MelbourneWellington

Cedar Falls

St Louis

London

MadridMilan

Antwerp Frankfurt

Warsaw

Utrecht

Hong Kong

Singapore

Mumbai

Shanghai

Jakarta

Tokyo

Beijing

Delhi

Kuala Lumpur

Moscow

Istanbul

Dublin

Labuan

Amsterdam

Paris

AA rating

2

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Rabobank Group hiện diện tại 40 quốc gia trên khắp thế giới

40 quốc gia Tập trung F&A

Toronto

New York

Mexico City

Sao Paulo

Buenos Aires SydneySantiago

Willemstad

Calgary

Washington DC

Chicago

AtlantaDallas

El Centro

San Francisco

Perth

MelbourneWellington

Cedar Falls

St Louis

London

MadridMilan

Antwerp Frankfurt

Warsaw

Utrecht

Hong Kong

Singapore

Mumbai

Shanghai

Jakarta

Tokyo

Beijing

Delhi

Kuala Lumpur

Moscow

Istanbul

Dublin

Labuan

Amsterdam

Paris

Hạng AA

2

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Global Network and Sector Coverage at Rabobank’s FAR Department

Utrecht

Mumbai

Sydney

Mexico City

São Paulo

New York Beijing

Shanghai

Hong Kong

Singapore

New Delhi

Christchurch

MelbourneBuenos Aires

St. Louis

Chicago

London

Dar es Salaam

Fresno

Animal Protein

Beverages F&A Supply Chains

Dairy Farm InputsConsumer Foods

Fruit & Vegand Flowers

Grains, Oilseeds &

Sugar

Seafood

80 research analysts across the globe in 12 different countries

Jakarta

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Introducing Rabobank Indonesia

• Rabobank opened its office in Indonesia in 1990.

• Recently shifting focus to Banking for Food strategy, financing only

Food and Agribusiness.

• Focus commodities such as: Poultry, Aquaculture, Coffee, Cacao,

Palm Oil & Value added

• Currently Rabobank Group has 34 branches in Indonesia,

employing around 1,000 FTE.

• Rabobank’s local contacts, knowledge of local markets and

regulations are used to leverage opportunities for our International

clients.

The long term presence of Rabobank in Indonesia

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Products and Services

Products and

Services

• Reguler Time Deposit

• Deposito On Call

• Foreign Currency Time Deposit(USD,

EURO,SGD)

Savings Accounts

• Tabungan Mantap

• Maxima Savings Account

• Maestro Savings Account

• Tabunganku

Loans and Trade Facilities

• Commercial and SME loans

• Overdraft

• Bank Guaranty and L/C

• Multi-purpose loan

Time Deposit

• Rabo Worldpass

• Rabo Access Center

24-Hour Banking

• Rabo Online Personal

• Rabo Online Business

Rabo Online Internet Banking

• Rupiah Current Account

• USD Giro

• SGD Giro

• Euro Giro

Current Account

Savings

Current Account

Time Deposit

Loans & TradeFacilities

Rabo Online

24-Hour Banking

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Aquaculture Sector OutlookII

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Indonesia Fishery Sector Outlook

Volume Production 2010 – 2014 wild-catch & aquaculture in million tons

Source: BPS Directory of Marine and Fishery

5.4

5.7

5.8

6.1

6.4

6.3

7.9

9.7

13.3

14.3

2010 2011 2012 2013 2014

Wildcatch Aquaculture

Rabobank Branches and Aquaculture Main Area Production

• With total production of 14,3 tons, Indonesia has become the 2nd largest

aquaculture producer in the world after china. (exclude wild catch)

• Ever since 2003 the trend of aquaculture production is constantly increasing

with average increment of 27.23% per year.

• OJK in coordination with the Ministry of Marine and Fisheries and the

Institution for Financial Services (Lembaga Jasa Keuangan / LJK) have

organised a program called JARING 2015. It consist of a series of activities

to support the development of the economy, including the sector of marine

and fisheries, where banks should take part in

Indonesia’s main locations for Aquaculture production are:• South Sulawesi with total production of 2,6 Mio ton;• NTT with total production of 1,8 Mio ton;• Central Sulawesi with total production of 1,2 Mio ton;• South-east Sulawesi with total production of 1 Mio ton;• East Java with total production of 0,99 Mio ton;

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Aquaculture Value Chain Mapping

Value Chain Segment

Farm Input Collector

Description

Challenge

Processing Company

Aquafarmer

• Technical Expertise

• Know-how practice –includes mortality rate, disease handling, & better management

• Biosecurity Discipline

• Competitions rely heavily on availability of cash

• Dependency on grand-parents supply from overseas

• Many farmers are still unaware with the benefit of vaccines

• Traders• City collectors

Export or Local Market

• Smallholder aquafarmer

• Integrated aquafarmer

• Logistic – poor infrastructure

• Sustainability and traceability in exporting

• Regulation in Export

• Export player• Local Retailer

• Fish Feed• Fingerling• Vaccination

• Fillet• Can Processor

• Cold chain system from the upstream supply

Rabobank Offering

• Import Finance• Machinery Financing• Factory Expansion• Inventory Financing• Working Capital• PRK• PB / PAB• Supply Chain

Financing

• Land Expansion• Equipment Financing• Inventory Financing• Working Capital• PRK• PB / PAB• Supply Chain

Financing

• Pre-Export Financing• Post-Export Financing• Inventory Financing• Working Capital• PRK• PB / PAB• Supply Chain Financing

• Machinery Financing• Factory Expansion• Inventory Financing• Working Capital• PRK• PB / PAB• Supply Chain

Financing

• Equipment Financing

• Inventory Financing• Working Capital• PRK• PB / PAB• Supply Chain

Financing• Logistic &

Transportation

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Risk in Aquaculture Business

•Pole is positioned at the location prone to flooding

•Mechanical breakdown or accidental damage to machinery and other installations

•Pollution which could adversely impact surrounding environmentTechnical Risk

•Outdated operational policy

•Management and staff capability to operate the business

•Low productivity due to disease outbreak, climate change, low quality of seeds/seedling, low quality of feed.

•Social issues

Operational Risk

•Inadequate supply (i.e Farm Input)

•Unsellable product due to low quality product and uncompetitive price

•Government intervention

•Competitive edge/product positioning/company’s position in the market/emergence of new competitors

Commercial Risk

•Price/currency fluctuation

•Uncollectible receivable

•Low capital

•Misuse of bank financing

Financial Risk

Financing from RabobankIII

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Rabobank Entities According to Farmer Type

Rabobank International Wholesale

Rabobank International Commercial

Rabobank International Commercial

Rabobank International SME

Rabobank Foundation

Micro finance and non-for-profit

organizations

Largefarmers &

agribusiness

Medium size farmer (emerging) & farmer

organisations

smallholders in Cooperatives

Official poverty lineFinancial below standard

• Organisation is legally registered andhave track record minimum 3 years

• 3 years of financial statement

• Higher limit facillity

• Require collateral

• Organisation is legally registered andhave track record minimum 3 years

• 3 years of financial statement

• Rural area with focus on social impact tosmallholders farmer

• Require no collateral

• Government, NGO, Grants

• Customised solution for big corporation

Banking Segment Segment ConditionBusiness Segment

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Term Loan – Investment in Shrimp Pond Expansion

Financing Objective Process Steps

1. Borrower (the subsidiary of PT. XYZ) to submit:• Construction budget for the shrimp

pond investment (RAB);• 3 years financials statement (up to FY

2015) and in-house financials 2016• Business plan for the investment

2. Rabobank Indonesia to do preliminary assessment based on the submitted data and issue Indicative Term Sheet to get consensus on facility structure.

3. Upon Agreement on Indicative Term Sheet, Rabobank Indonesia to do further due diligence and proceed with the transaction

Security

1. Proper due diligence on the subsidiary of PT.XYZ is necessary;

2. We recommend PT. XYZ to support the transaction with solid Corporate Guarantee

3. Invested assets shall be pledged to Rabobank Indonesia to support the facility

1. PT. XYZ is seeking for Term Loan Facility (TLF) for its shrimp breeding subsidiary. The purpose of the loan is for shrimp pond expansion.

2. Borrower for the facility will be the subsidiary of PT. XYZ.3. Indicative amount on the investment requirement is not yet disclosed

as PT. XYZ is yet to receive the final construction budget

Financing Scheme

PT. XYZ

Subsidiary of

PT. XYZ

Corporate Guarantee (if deem necessary)

Term Loan Facility

Fixed Asset Pledge

Off-takeContracts

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Working Capital – Financing the Farm Input

Shrimp FarmerPT. XYZ

Approved Buyer 1

Fish Feed

Farm Input Provider

Shrimp Fingerling

Shrimp

Approved Buyer 2

Approved Buyer 3

2

1

3

3

3

4

5

Flow1. Farm input provider supplies fish feed & shrimp fingerling to the shrimp farmer;2. Rabobank will provide financing up to 80% of the invoice value; Shrimp farmer delivers goods to

the approved buyer (i.e. the Processing Company;3. Shrimp farmer delivers goods to the approved buyer (i.e. the Processing Company);4. On the invoice due date, approved buyer makes payment to Rabobank account. 5. Upon receipt of the payment, Rabobank will debit the Escrow’s account for loan repayment.

Residual amount will be transferred to supplier operating account.

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Benefit for Shrimp Farmer:

• Cash-in the AR, improve liquidity

• Reduce financing cost in the supply chain

• Enhance supplier- buyer relationship

Working Capital (Supply Chain Financing)

Where financing is granted against delivery, payment order, and underlying documents (i.e. invoice) accepted by the Principals to enable

the Suppliers to obtain cash up-front.

Flow1. Shrimp farmer delivers goods to the approved buyer (i.e. the Processing Company);2. Upon the delivery, supplier request the invoice and the delivery order to be signed

when the goods have been received.3. Shrimp farmer sends the signed hard copy invoice to Rabobank.4. Rabobank will provide financing up to 80% of the invoice value;5. On the invoice due date, approved buyer makes payment to Rabobank account. 6. Upon receipt of the payment, Rabobank will debit the Escrow’s account for loan

repayment. Residual amount will be transferred to supplier operating account.

With recourse to supplier

Amount Up to 80% of invoice value

Pricingcalculation

In arrear with flexible tenor or Fixed up front

Financing Tenor

Max 180 days

Repayment Source

Direct payments from Buyer to pre-agreed escrowaccounts in RII.

Disclosure requirement

Notice of assignment of receivable to buyer

Facility Conditions

- Buyer's accepted invoice

- All Invoices must state payments from Principal areto be made to the Supplier’s designated account withRII.

Shrimp Farmer

Approved Buyer

(Processing Company)

Signed Invoice fromapproved buyer

Payment (80%)

Invoice & Delivery Order

Shrimp

Repaymentafter tenor

1 2

3

4

5

6Repayment after

principal, interest, & fees settlement

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This presentation has been prepared exclusively for the benefit and internal use of the reader and its group entities and does not carry any right of publication or disclosure other than to the reader and its relevant

group entities. Neither this presentation nor any of its contents may be used for any other purpose without the prior written consent of Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A. (“Rabobank”). The

information in this presentation reflects prevailing market conditions and our judgement as of this date, all of which may be subject to change. This presentation is based on public information. The information and

opinions contained in this document have been compiled or arrived at from sources believed to be reliable, but no representation or warranty, express or implied is made as to their accuracy, completeness or

correctness. The information and opinions contained in this document are wholly indicative and for discussion purposes only. No rights may be derived from any potential offers, transactions, commercial ideas et

cetera contained in this presentation. This presentation does not constitute an offer or invitation. This document shall not form the basis of or be relied upon in connection with any contract or commitment

whatsoever.

Thank you