1. HEADER: Arial Regular 24/29 Max two lines and CAPS Text: Arial Regular 16/19 Add Event via ‘View’ / ‘Header and Footer’ Max one line Insert name in first line and title in second line 1 Introduction to IFU Investment Fund for Developing Countries Frank Zimmermann, Investment Manager Finansieringsmoduler i Skanderborg - Randers og Århus - Silkeborg May 2013

2. HEADER: Arial Regular 22/26 Max one line. CAPS Text: Arial Regular 18/22 Click on ’Increase Indent’ for more bulletdesign To get previous design back, click on ’Decrease Indent’ PAGE 2 Financing in emerging markets poses testing challenges… How will you manage credit risk and working capital needs to a rapidly expanding customer in Indonesia? How can you protect yourself from corruption in Bangladesh – one of the most corrupt business environments in the world? How will you manage transparent decision-making and reporting when co- operating with a Chinese partner who has never been in a partnership with a foreign partner before? Where will you find financing for your planned production site in Ethiopia when your Danish bank looks at you in horror?

3. HEADER: Arial Regular 22/26 Max one line. CAPS Text: Arial Regular 18/22 Click on ’Increase Indent’ for more bulletdesign To get previous design back, click on ’Decrease Indent’ PAGE 3 IFU is a self-governing fund established in 1967 owned by the Danish government IFU’s purpose is to promote economic activity in developing countries and new emerging markets IFU will advise and invest together with Danish companies in developing countries in commercially viable projects IFU operates on commercial terms IFU’s instruments are equity investments and/or loan financing Annual activity:30-35 new investments 20-25 additional investments DKK 500 – 600m (USD 90 – 110m) Portfolio:800 projects/85 countries 250 active Who is IFU?

4. HEADER: Arial Regular 22/26 Max one line. CAPS Text: Arial Regular 18/22 Click on ’Increase Indent’ for more bulletdesign To get previous design back, click on ’Decrease Indent’ PAGE 4 Investment countries and offices Insert picture in right size Picture format = H 10.3 x W 22.2 cm IFU Offices Accra Johannesburg Nairobi Cairo New Delhi Beijing Investment limit USD 6,238 (2013) Africa 30% Latin America 15% Asia 50% Others 5%

5. HEADER: Arial Regular 22/26 Max one line. CAPS Text: Arial Regular 18/22 Click on ’Increase Indent’ for more bulletdesign To get previous design back, click on ’Decrease Indent’ PAGE 5 Examples of IFU’s Danish partners Big companies (40%) SME’s (60%)

6. HEADER: Arial Regular 22/26 Max one line. CAPS Text: Arial Regular 18/22 Click on ’Increase Indent’ for more bulletdesign To get previous design back, click on ’Decrease Indent’ PAGE 6 Financing – an overview of IFU’s guidelines Equity HEADER: Arial Regular 22/26 Max two lines. CAPS Text: Arial Regular 16/19 Click on ’Increase Indent’ for more bulletdesign To get previous design back, click on ’Decrease Indent’ Insert picture in right size Picture format = H 12.3 x W 10.4 cm Loans – secured or unsecured Duration5-8 years5-7 years in $, EUR, DKK Amount Maximum of DKK 100 millions per project, though - Max. 30% of total financing for projects (higher for smaller projects) - Max. matching the Danish Partner(s) Exit Put/call agreement with the Danish partner at market value Exit agreement from the start Repayment, 1-2 years grace

7. HEADER: Arial Regular 22/26 Max one line. CAPS Text: Arial Regular 18/22 Click on ’Increase Indent’ for more bulletdesign To get previous design back, click on ’Decrease Indent’ PAGE 7 What does IFU bring to the table? Network & expertise 40 years of experience from developing countries and emerging markets Regional offices in Egypt, China, India, Kenya, South Africa and Ghana Know-how about local investment conditions Hands-on during preparation and implementation Political “insurance” “Quality mark” International network of development finance institutions Financing Equity and/or loan financing (without recourse to partners)

8. HEADER: Arial Regular 22/26 Max one line. CAPS Text: Arial Regular 18/22 Click on ’Increase Indent’ for more bulletdesign To get previous design back, click on ’Decrease Indent’ PAGE 8 Provide risk capital on commercial terms – we expect our money back Provide aid or grants IFU – what we do and don’t do HEADER: Arial Regular 22/26 Max two lines. CAPS Text: Arial Regular 16/19 Click on ’Increase Indent’ for more bulletdesign To get previous design back, click on ’Decrease Indent’ Insert picture in right size Picture format = H 12.3 x W 10.4 cm Invest together with Danish companies abroad Invest with Danes without a commercial activity in Denmark; i.e. a A/S or ApS Serve as active Board members Provide active day to day management of project Provide sparring and advice in developing the project Develop or fund feasibility studies Contribute to sustainable development (CSR) Non-compliance with host country legislation and/or int. CSR standards

9. HEADER: Arial Regular 22/26 Max one line. CAPS Text: Arial Regular 18/22 Click on ’Increase Indent’ for more bulletdesign To get previous design back, click on ’Decrease Indent’ PAGE 9 Activity: Production of Tilapia fish (aquaculture) Royal Danish Seafood Group A/S IFU Palm Acres Ltd. DANIDA Business Partnerships DK Ghana West African Fish Ltd. DKK 20.5m DKK 16.7m DKK 0.5m DKK 10m Case – West African Fish Ltd., Ghana Danida Buss. Finance DKK 5m

10. HEADER: Arial Regular 22/26 Max one line. CAPS Text: Arial Regular 18/22 Click on ’Increase Indent’ for more bulletdesign To get previous design back, click on ’Decrease Indent’ PAGE 10 What do we require from our partners? A strong business caseExperience within the industry Solid management experience Organisational and strategic commitment Financial strength

11. HEADER: Arial Regular 22/26 Max one line. CAPS Text: Arial Regular 18/22 Click on ’Increase Indent’ for more bulletdesign To get previous design back, click on ’Decrease Indent’ Corporate Social Responsibility - CSR PAGE 11 ■ CSR self assessment - Human Rights & Labour Rights - Occupational Health & Safety - Environment & Climate - Anti-Corruption - Community Development ■ CSR Action Plan

12. HEADER: Arial Regular 22/26 Max one line. CAPS Text: Arial Regular 18/22 Click on ’Increase Indent’ for more bulletdesign To get previous design back, click on ’Decrease Indent’ PAGE 12 Some key lessons learned from investing with Danish partners Projects require more money than initially thought and take longer to implement Good idea to IFU at an early stage of the project to ensure flexibility going forward Pay attention to legal issues Think through the full value chain requirements of your project – often the suppliers and business partners are not there HEADER: Arial Regular 22/26 Max two lines. CAPS Text: Arial Regular 16/19 Click on ’Increase Indent’ for more bulletdesign To get previous design back, click on ’Decrease Indent’ Insert picture in right size Picture format = H 12.3 x W 10.4 cm

13. HEADER: Arial Regular 24/29 Max two lines and CAPS Text: Arial Regular 16/19 Add Event via ‘View’ / ‘Header and Footer’ Max one line Insert name in first line and title in second line 13 Frank Zimmermann Investment Manager Tel: +45 30 50 12 13 FZI@ifu.dk HEADER: Arial Regular 28/33. CAPS Text: Arial Regular 16/19 Insert Name in first line, Title in second line, Contact info in third line IFU Fredericiagade 27 1310 Copenhagen K Denmark Tel.+45 33 63 75 00 Fax+45 33 63 75 99 ifu@ifu.dk www.ifu.dk How to get IFU involved? – give us a call or send a mail!