Cyrille Antignac — From Smallholders to Retailers

Transcript

1. Indo-Chine Equity Partners – Summary Presentation From Smallholders to Retailers A Social Venture in Rural Development Venture Capital UBERIS Capital Impact Investing TBN Partner Day 1 December 2012 Cyrille Antignac Managing Director
2. Indo-Chine Equity Partners – Summary Presentation Introduction 2 UBERIS Capital – Impact Investing in Southeast Asia – All rights reserved About Uberis Capital ► 16 years active as investor in Social Enterprises ► Specialists of the Mekong Region: Vietnam, Cambodia, Laos, Thailand, Burma ► Former Social Entrepreneurs, VC/PE and fund managers ► Pioneered social investing via HAGAR Social Enterprise Group (HSEG) Founders ▪ Pierre Tami, founder HAGAR International ▪ Cyrille Antignac, founder Indochine Partners ▪ Kim Tan, founder Springhill Management ▪ Anthony Orsatelli, former Chairman NATIXIS AM ▪ All are TBN members
3. Indo-Chine Equity Partners – Summary Presentation 3 Our Main Themes  Rural development — Highest concentration of BoP — In rural Cambodia: 90% below $0.8 per day — Food, energy, water — Inefficient supply chains, poor infrastructure UBERIS Capital – Impact Investing in Southeast Asia – All rights reserved Example: Cambodian rice  Main staple in Asia  7.5 million tons p.a.  4 million excess production but no direct export  Local milling capacity: a mere 10%  Massive improvement potential
4. Indo-Chine Equity Partners – Summary Presentation 4 Case Study  IB Rice Co. — Started as a conservation project for local endangered wildlife species — 4 villages in north and central Cambodia — 700 families (4,500 beneficiaries) — Price premium UBERIS Capital – Impact Investing in Southeast Asia – All rights reserved Wildlife Less forest destruction More wildlife Social Income Training Food Security Buying Power Environmental Sustainable Farming Practices Higher Habitat Security Price Premium to Farmers Village Network Organisation
5. Indo-Chine Equity Partners – Summary Presentation 5 What needs to be fixed?  The problem with IB Rice Co.  Must export to break-even  Limited capabilities  Inadequate structure UBERIS Capital – Impact Investing in Southeast Asia – All rights reserved ▪ Fragmented supply, too many middlemen ▪ Poor rural organisation ▪ Little supply chain collaboration  Poor margins  No bargaining power  Economic inefficiencies  The problem with Cambodian rice Current Business Case In US$ per Kg Retail price: $ 1.1 Logistics: $ 0.1 Milling cost: $ 0.3 Paddy price: $ 0.3 $1.1 $0.3 $0.3 $0.1 $0.08
6. Indo-Chine Equity Partners – Summary Presentation 6 Our Solution  Arrange a pilot export case  Supply-Chain collaboration  Rural cooperative  New working structure UBERIS Capital – Impact Investing in Southeast Asia – All rights reserved Non-Profit Co. NGO Buy rice + Technical Assistance Sell rice Local Market Sell rice Own + fund Supervise Technical Assistance And Programme Mission Villagers For-Profit Co. Local & Export Market Agreement Existing Operation Shareholders Social Venture Capital Transfer of commercialisation
7. Indo-Chine Equity Partners – Summary Presentation Transition Capital 7 Impacts  Up to 1,000 tons p.a.  From 4 Village Networks to 20  More families: 3,000 – 4,000  Set floor price: +30% per ton  Upside/risk sharing mechanism  Up to 1.5 $ more per day: about 2-3x UBERIS Capital – Impact Investing in Southeast Asia – All rights reserved End Business Case In US$ per Kg Retail price: $ 2.7-4.5 FOB Price: $ 0.9 Milling cost: $ 0.2 Paddy price: $ 0.4 Up to 100 tons p.a.  Loss Up to 1,000 tons p.a. Gain $200k $4.5 $0.4 $0.2 $0.1 $0.2 $1.1 $0.3 $0.3 $0.1 $0.08
8. Indo-Chine Equity Partners – Summary Presentation 8 Still a long way to go… What’s next?  Reserved Capacity  Increase rural involvement  Share models  More deals with retailers  Better deals with retailers UBERIS Capital – Impact Investing in Southeast Asia – All rights reserved A replicable model
9. Indo-Chine Equity Partners – Summary Presentation 9 Thank you for your attention UBERIS Capital – The South East Asia Impact Investing Fund – All rights reserved Cyrille Antignac Partner +44 7780 435 228 cyrille.antignac@uberiscapital.com c/o Delff Management Ltd 37 Thurloe Street London SW7 2LQ United Kingdom www.uberiscapital.com  Questions & Answers UBERIS Capital – Impact Investing in Southeast Asia – All rights reserved Venture Capital UBERIS Capital Impact Investing