Ernesto Morgado S.A.Pato Real. The rice of your life.

April 2014

1. The Company

• The oldest rice mill in Portugal

- Leading portuguese rice meal since 1920

• SME family-owned company, with a 4-generation knowledge of the rice business

• Located in Mondego Valley, close to Figueira da Foz

- an excellent rice production area

• privileged access to the rice of local farmers and family owned fields

• strong long-term relationships with the local rice farmers

- logistics advantage

• close to the national highways and to port facilities (Figueira da Foz: 20 km, Porto: 150 km, Lisboa: 200 km)

The CompanyOverview

The CompanyOverview

MARKET SHARE

• Its own brand (Pato Real) is the 3rd/4th in sales volume in the Portuguese rice market overall

• Market leader in the Medium Grain segment (Carolino, 2nd largest segment in Portuguese market)

STRATEGIC BUSINESS UNITS

• Our Brands

• Pato Real, Pato Real Malandrinho e Pato Real Minuto

• Private Labels and Food Aid

• Industrial

PRODUCTION• Production Capacity: 40.000 ton/year (milled rice)

• Employees: 58

The CompanyOur Clients

• Selling in the most relevant hypermarkets, supermarkets and C&C’s in Portugal

PORTUGAL

OTHER COUNTRIES

• Europe: France, Luxembourg, Switzerland

• Africa: Mozambique

The Company Restructuring Investment of ±€8.5 Million (2005-09)

• Automation and rationalisation

• Higher productivity• Opening to the private

labels market

Competitiveness

Quality

STRATEGIC POSITIONING

• Active R&D and innovation to develop new products based on rice to address consumer needs

• Hiring specialized human resources

• Establishment of partnerships with national and foreign universities• Escola Superior Agrária de Coimbra

• Escola Superior de Biotecnologia da Universidade Católica (Porto)

• University College Cork (Ireland)

Innovation

Brand awareness

Internationalisation

• Pato Real brand repositioning as an umbrella brand

• Investment in marketing and communication

• Opening towards foreign markets

Market

• Building strong relationships within the value chain• rice suppliers • clients (private labels)

• The only player in the portuguese rice market to have an Integrated Quality Management System certified by SGS• Quality (ISO:9001)

• Environment (ISO:14001)

• Food Safety (ISO:22000)

Pato Real NATURAL

Before 2006 2006

Pato Real NATURAL

• DISCONTINUED IN 2010• Evaluating possible

reformulation of the product line

• Milled Rice line extension

• Thai Jasmim Rice• Carnaroli (Risotto Rice)

•

Added Value to Consumer

The CompanyInnovation Culture: Brand Competitiveness and Differentiation

• Milled Rice• Long Grain Rice (Indica)• Long Grain Rice (Japonica)

• Easy-to-prepare meals based on precooked and dehydrated rice. Ready in 10 minutes, just need water and olive oil to be added

• Ready-to-eat rice meals, both full and side dishes, prepared with traditional portuguese recipes, using mainly Medium Grain Rice (Carolino). Ready in 2 minutes in the microwave

• White Rice line extension

• Basmati• Parboiled Long Grain Rice

• R&D of new product lines

• Pato Real Minuto line extension: 2 new recipes added

• Seafood Rice• Cuttlefish and Bean Stew with Rice

Pato Real GOURMET

2007

Pato Real MINUTO

2009 2012-13

Pato Real NATURAL

Pato Real MINUTO

2014

The

Com

pany

Prod

ucts

• Pato Real Gourmet recognised as Sabor do Ano 2008 (Taste of the Year 2008) in Rice Specialities category in Portugal

• Pato Real Gourmet awarded as Master da Distribuição 2008 (Master of Retailing 2008) by the TOP 10 Retailers, in the Grocery Products category in Portugal

• Pato Real Minuto recognised as Sabor do Ano 2010 (Taste of the Year 2010) in Rice Specialities category in Portugal

• Our advertising agency (HPP Euro RSCG) won the Gran Prix of SINOS 2008 (Portuguese Language International Festival of Advertising and Communication) in the Design category with Pato Real Gourmet packaging design (In total, 647 works from 4 different countries were submitted)

Pack

agin

g

• Invited to be part of Rede PME Inovação (SME Innovation Network) of COTEC Portugal, a Portuguese association to promote business innovation under the aegis of the President of Portugal, similar to the Spanish and Italian COTEC networks

• Recognised by IAPMEI as PME Líder (good performance and level of risk) since 2008

The CompanyMarket Recognition

2. Product Range

Product Range

PATO REALMINUTO

Ready Meals and Ready-to-Eat Rice products

PATO REAL NATURALMilled Rice

INDUSTRIAL

Milled Rice and Rice By-Products

PRIVATE LABELS AND FOOD AID

Milled Rice

Ready Meals and Ready-to-Eat Rice products

2. Product RangeMilled Rice

NATURAL

Long Grain Rice

(Japonica)

Long Grain Rice

(Indica)

Parboiled Long Grain Rice

Basmati Rice Thai Jasmim Rice Risotto Rice

Carnaroli

PATO REAL NATURAL IS..

MILLED RICE

CAREFUL SELECTION OF SEED VARIETIES AND ORIGIN

QUALITY AND FOOD SAFETY

VARIETY

ASSURED UNIFORMITY ALL YEAR LONG FOR CONSISTENT COOKING RESULTS

.. GLÚTENOBTAINED WITH STATE OF THE ART EQUIPMENT AND TECHNOLOGIES

NATURALLOGISTIC INFORMATION

2. Product RangeReady Meals and Ready-to-Eat Rice Products

PATO REALMINUTO

2 minutes and it’s ready

THE BEST RICE

• Ready-to-eat meals, both full and side dishes

• Based on rice

Long Grain (Japonica Rice, Carolino from Mondego Valley)

Basmati (Himalayan - India)

• Portuguese and Asian Recipes

• GLUTEN FREE MEALS

• Quality and taste of a freshly prepared home

meal

• PROCESSO

• Combinação inovadora de processos físicos, incluindo a esterilização por calor

• PRODUTO

• Garantia de qualidade e sabor genuíno de uma refeição fresca

• Não necessita de refrigeração

• Sem adição de corantes nem conservantes

• Validade de 1 ano à temperatura ambiente

• ..

INNOVATION TECHNOLOGY

3 LEVELS

PRODUCT

PROCESSES

INNER PACKAGING

INNOVATION TECHNOLOGY

PROCESSES

INNER PACKAGING

PRODUCT >• Adding value to a national, local and

traditional food resource from Mondego Valley

• Countering market consumption transfer from tastier medium grain to easier to cook Long grain rice

• More tasteful and suitable for Gourmet Mediterranean cuisine

• Absorves flavours, colours and taste of the ingredients that it is cooked with

• Pato Real Minuto’s innovation involved solving starch retrogradation problems

• Medium grain rice has high sensitivity to heat and to the thermal process that guarantees the long-term preservation of the product

• Perhaps the only company in the world using this type of rice in sterilized products

• Pato Real Minuto innovates in using Medium

grain instead of parboiled Long grain rice

• PROCESSO

• Combinação inovadora de processos físicos, incluindo a esterilização por calor

• PRODUTO

• Garantia de qualidade e sabor genuíno de uma refeição fresca

• Não necessita de refrigeração

• Sem adição de corantes nem conservantes

• Validade de 1 ano à temperatura ambiente

• ..

INNOVATION TECHNOLOGY

PRODUCT

INNER PACKAGING

• Controlling rice molecular structure and

technologic processes in order to obtain

excellent industrial results

-The product is prepared, packaged and sterilised at

high temperature

- Similar preservation technology to the one used in

canned food

- Guarantee of stability and safety without

overprocessing (no off-aromas nor off-flavours)

- Original taste of a freshly home prepared meal, with loosen and soft rice grains

• Without using preservatives or other chemical artificial additives

• Stored at room temperature. NO NEED FOR REFRIGERATION

• SHELF LIFE: at least 1 YEAR

PROCESSES > >• Pato Real Minuto results from an innovative mix of NON ARTIFICIAL technologic processes

• PROCESSO

• Combinação inovadora de processos físicos, incluindo a esterilização por calor

• PRODUTO

• Garantia de qualidade e sabor genuíno de uma refeição fresca

• Não necessita de refrigeração

• Sem adição de corantes nem conservantes

• Validade de 1 ano à temperatura ambiente

• ..

INNOVATION TECHNOLOGY

PRODUCT

PROCESSES

• SIDE DISHES

• Suitable packaging to use in microwave and bain-marie

• READY MEALS

• Suitable packaging to use in microwave, bain-marie and conventional oven

- Using C-PET instead of polypropylene PP

• Higher Melting Point (250º C)

• Good oxygen barrier to maximise stability

• Thinner material (environment conscious)

• Easy open plastic film lid- Easy to peel off

INNER PACKAGING >• Pato Real Minuto with innovative packaging and film lid, more functional

SERVINGS

& PACKAGING

RICE

• Net weight: 260g

• 2 Servings (2x130g)

• 2 cups- Plain rice or mixed with other ingredients

MEALS

• Net weight: 300g and 350g

• 1-2 Servings

• Inner tray with 1 or 2 compartments

- Rice mixed with other ingredients in only one

compartment

- Rice separated from other ingredients and sauce

in different compartiments

COOKING INSTRUCTIONS

• Ready-to-eat

• Just needs to be warmed up

- MICROWAVE: 2 minutes at ±800W; 1 minute at 1000w

- OVEN: Pre-heat the oven to 180ºC. Heat for 10 to 15 minutes

- BAIN MARIE : Bring water to boil, immerse the inner package and simmer for 15 to 20 minutes

PATO REALMINUTO

2minutes and it’s ready

O MELHOR ARROZ

• Quality and original flavour of a freshly home cooked meal

• Without any cooking preparation. It only takes 1 to 2 minutes in the microwave

• Guarantee of a natural and safe meal, tasty even though it did not require chilled storage

• At any moment or place, stored at normal conditions for 1 year!

• Prepared with Portuguese rice, recipes and technology

Safe, Natural and Original Flavour

ARROZ DE MILHO

PATO REALMINUTO

2 minutes and it’s ready

OCTOPUS RICEMONKFISH RICERICE WITH BEEF AND

VEGETABLE STEW

BASMATI RICE WITH

CHICKEN CURRYDUCK RICERICE WITH PORTUGUESE

STYLE COD

PATO REALMINUTOREADY-MEALS

ARROZ DE MILHO

PATO REALMINUTO

2 minutes and it’s ready

PATO REALMINUTOREADY-MEALS

SEAFOOD RICE

Rice with fish, cuttlefish and mussels in a tomato sauce

CUTTLEFISH AND BEANS STEW WITH RICE

Rice with cuttlefish and white beans in a tomato sauce

NEWPRODUCTS

(May 2014)

ARROZ DE MILHO

PATO REALMINUTO

2 minutes and it’s ready

SWEETCORN RICE CORIANDER RICE BASMATI RICEVEGETABLE RICE

* Taste of the year

PATO REALMINUTOREADY-TO-EAT RICE

PATO REALMINUTO IS..

TYPICAL PORTUGUESE RECIPES

QUALITY AND FOOD SAFETY

CONVENIENCE

AMBIENT STORAGE(NO NEED FOR REFRIGERATION)

SHELF LIFE: 1 YEAR

NATURAL PRODUCT PRESERVED BY HEAT (NO CHEMICALS)

VALUING A PORTUGUESE FOOD RESOURCE: LONG GRAIN RICE (JAPONICA) “CAROLINO”

PATO REALMINUTOLOGISTIC INFORMATION

2. Product RangePrivate Labels and Food Aid

Private Label and Food Aid

• Retailers, catering, hotel and restaurant chains, health facilities, schools

TARGET

• Milled Rice- long grain (Japonica), long grain (Indica), parboiled, basmati, thai jasmim, carnaroli (risotto)

• Rice by-products (brokens)

• Ready-to-eat rice products and ready meals (recipes customization according to the client’s needs)

PRODUCTS

• Pillow bags (1kg, 5kg), brick bags (1kg)

• Cups (125g x 2), trays (300g - 350g) and pouch bags (2kg - 5kg)

PACKAGING

2. Product RangeIndustrial

Industrial

• Industrial clients (food Industries, baby food and pet food)

TARGET

• Milled Rice

- long grain (Japonica) , long grain (Indica), parboiled, basmati, thai jasmim, carnaroli (risotto)

• Rice by-products

- husk, bran and brokens

- differentiated brokens from indica and japonica varieties can be provided

PRODUCTS

• Pillow bags, brick bags, big bags

• 1 kg, 5 kg, 25 kg, 40 kg, 50 kgPACKAGING

Licinia

3. Contacts

CONTACTS

Ernesto Morgado, S.A.

Rua Prof. Casimiro de Oliveira, 21, Barra

3090-833 Alqueidão - Figueira da Foz, Portugal

T: (+351) 233 900 800

F: (+351) 233 940 015

E: info@emorgado.pt

www.emorgado.pt