marubeni 20120530 gavilon_eng

May 30, 2012

Acquisition of Gavilon

Acquisition of Gavilon – May 30, 20122

Agenda

1. Gavilon Overview

2. Gavilon Business Segments

3. Grains

4. Fertilizer

5. Energy


1. Gavilon Overview

• Headquarters: 11 ConAgra Drive, Omaha, Nebraska, USA

• Overview: US-based, leading grains, fertilizer and energy trader with more than 300 storage facilities and offices worldwide; Gavilon became the third largest grain operation behind ADM and Cargill following the 2011 DeBruce Companies acquisition

• Established: Private investors formed Gavilon and acquired ConAgra Trade Group in June 2008

• Net Assets: US$ 1,909 million

• Sales: US$ 17,852 million

• Equity Holders: Ospraie Fund and Ospraie Special Opportunities Fund, General Atlantic, Soros Fund Management and Gavilon Management

• Employees: 1,943


2. Gavilon Business Segments

• Grains: Operates a strategic distribution network with more than 140 grain facilities across North America and the third largest grains storage network in the US with distribution marketing offices in Australia, Ukraine and Brazil

• Fertilizer: Operates one of the largest US wholesale fertilizer networks with 74 storage and handling facilities across the US, Mexico, South America and Africa with storage capacity of 1.2

million tons and handling volume of 6 million tons

• Energy: Operates a trading business mainly dealing in crude oil, natural gas and fuels which is operated through a vast logistics network that includes 8 million barrels of crude oil storage capacity, 10 billion cubic feet of natural gas storage capacity and 500,000 barrels of refined products storage capacity

2011 Sales US$ 17,852 Employees 1,943

Grains2011 Sales US$ 14,555Employees 1,326

Fertilizer2011 Sales US$ 2,907Employees 311

Energy2011 Sales US$ 390Employees 124

Risk Control / Risk Management

Transportation / Logistics


3. Grains

Strengths in Grains

• Third largest storage network (8.3 million tons) and over 140 grain facilities in the US

• Major US handler of grain ingredients (wheat products, corn products, DDGS, etc.)

• Operates in key global markets, such as Australia, Ukraine and Brazil

Significance of the Transaction

• Expansion of the platform in the US, which is the largest grain market in the world

• Creating a major grains player, with combined handling volume of more than 55 million tons

• Continued ability to maintain and provide a steady source of grains

Wichita Facility

• 852,000 metric tons storage

• 363 bins stretching one-half mile

• shuttle loader capability


3. Grains – Significance of US Market in Global Grains Trade

0

200

400

600

800

1,000

1,200

Top 5 exporters after US (Argentina,Australia, Brazil, Canada, Russia)

US

Grains Demand(million tons)

Note: Includes volumes for corn, wheat, soybeanSource: Food and Agricultural Policy Research Institute

0

250

500

750

1,000

1,250

1,500

1,750

2,000

2,250

US Rest of World

20112011

Grains Production(million tons)


3. Grains – US Grain Majors (Storage Capacity)

Source: Grain & Milling Annual 2011

10.49.5

9.08.3 8.1

6.3

0.0

2.0

4.0

6.0

8.0

10.0

12.0

ADM Marbeni +Gavilon

Cargill Gavilon Bunge CHS


3. Grains – Growth Strategy Post-Acquisition

• Establish a competitive global grain network with Gavilon’s North American operations and Marubeni’s global distribution channels

Producers Origination and Supply

Transportation and Logistics Storage Export Sites Marketing and

Distribution Customers

Strength in origination and supply

Strength in global distribution, especially in China

Global Grains Trade Supply Chain

Purchase grain and ingredients from farmers, co-ops, processors and other merchants earning origination margin

Merits of scale when shipping freight (railroad, barge, etc.)

Store and blend product to meet customer quality requirements and earn elevation, blending, storage and carrying charges

Profit from two export terminals; Columbia Grain –100% owned by Marubeni; Kalama Export Company –45% owned by Gavilon

Distribute to growing developing world markets and Japan; capture sales margins


4. Fertilizer

Strengths in Fertilizer• One of the largest fertilizer wholesale networks in the US• Continuous relationships with more than 1,800 global leading suppliers and customers• Leveraging its own market intelligence through grains, ingredients and fertilizer markets

Significance of the Transaction• Building up the fertilizer value chain through collaboration with Helena• Expansion of the trading and distribution business, and acceleration of fertilizer product manufacturing,

including fertilizer raw materials

Jamestown Facility

• 38,100 metric tons of dry fertilizer storage

• 20,000 short tons of liquid storage complete in June

• Share site with grain facility


4. Fertilizer – Growth Strategy Post-Acquisition

• Synergy with Helena – significant North American fertilizer market supplier

• Expansion of fertilizer distribution – international trading / distribution, inter-relationship between grain

and fertilizer demand growth

US Fertilizer Market

Gavilon (Fertilizer) HELENAFertilizer Volume US (4 million tons), Outside US (2 million tons) US (2.8 million tons)

2011 Sales US$ 2.9 billion US$ 3.7 billion

5%(2 mil MT)

Trader owning import terminals

Domestic(North

America)30 mil MT

Import10 mil MT

Total 40 mil MT

20%(8 mil MT)

15%(6mil MT)

Farmer / C

o-ops

60%(24mil MT)

Supplier Wholesaler Retailer End User

Large retailer owning import and domestic

river terminalsTrader / Whole

saler owning import and domestic river

terminals Small – Mid retailer not owning terminals


5. Energy

Strengths in Energy• Vast logistics network, that includes 8 million barrels of crude oil storage capacity, 10 billion cubic feet of

natural gas capacity, and 500,000 barrels of refined products storage capacity• Sophisticated risk management capability grounded in sound governance structure

Significance of the Energy Business Acquisition and Growth Strategy• Expansion of our crude oil, refined products, and natural gas trading , marketing and distribution

business in North America• Growth via increased storage assets and further development of stable fee and margin businesses from

existing assets

Cushing Facility

• 4.14 million barrels of storage capacity

• 14,000 barrels per hour of pipeline throughput capacity

• Access to NYMEX delivery point