PKA One of the largest pension administration companies in Denmark Owned by 8 occupational pension funds members occupied in the public social and health sectors 19 billion Euro under management Listed and private equity Bonds Real Estate Forest Infrastructure

Emerging/Frontier markets 1,8 billion Euro invested in Emerging/Frontier markets AfricaMillion Euro Private equity40 Listed equity40 Forest3

Economic development in Africa Worlds third-fastest growing region 4,9% annual real GDP growth, Widespread growth across sectors and countries Urbanization Growing labour productivity Growth driven by: Commodity boom Greater stability (inflation, foreign debt, conflicts) Economic reforms (business-friendly) Healthy urbanisation (productivity growth)

PKA investements in Africa Listed equity –South Africa –Marokko –Egypt Private equity –Pharmaceuticals –Dairy –Real estate –Financial (banks, insurance) –IT/Telecom –Natural resources: Cement production Mining Food Farmland – new initiative!

Investments in Africa Private equity –Manager selection –Due dillingence – on-site visits –Side letter to contract –Advisory Board Listed equity –Manager selection –Global Compact –Active ownership via engagement partner

Investments in Africa Always seeking attractive returns Risk/return profile Portfolio diversification Four relevant industries in Africa: –Comsumer facing –Resources –Agriculture –Infrastructure

Farmland in Africa Supply of crops increasing moderately Rapidly increasing demand for crops Lack of tecnology to increase output Lack of access to foreign capital Too small-scale ÷ optimal use of investments ÷ attract the right skills

Farmland in Africa Consolidate Add capital and knowledge Educated farmers Adjust crops to soil, timing of seeding, new cultivation tecniques, tec.  Multiplied output – high returns CapitalKnowhowOutputFood

Risk Political relaiable systems for private ownership Access to take out capital gains Reliable tax-systems Expropriation-risk  Insurance against political risks in farmland investments

Social Responsibility Fiduciary duty is main criteria Responsibility in all investments Focus on areas where returns and responsibility goes hand in hand African farmland: Improve standard of living for small-scale farmers Inter-dependence with local community Sponsoring schools Training centers for small-scale farmers  Growth out of poverty - UN Millenium goal