SOVENA today Asia-Pacific Olive Oil consumption trends Japanese Olive Oil Market

3

Sovena is the market leader in the olive oil industry

• 100% family owned company

• Mello family created the first industrial group in Portugal more than 100 years ago

• In 2001, the family has decided to focus on the edible oil industry

• The largest olive oil company worldwide

• 20% growth in sales in 2013 reinforced SOVENA’s overall market leadership, as well as the company position as the largest private label olive oil supplier worldwide

• In 2013, SOVENA sold 200k tons of olive oil, c. 8% of the world consumption

• SOVENA’s growth is supported in the company’s capacity to lead innovation in a very traditional market

• SOVENA is a structurally sustainable company, relying on a carbon neutral operation

• 1,6 Bn US$ sales (2013) coming from more than 70 countries

• SOVENA is currently the largest Spanish olive oil exporter (the main producing country in the world), and the largest olive oil importer in USA

• The company is the market leader in Portugal, Spain, USA and Central Europe

Source: Sovena

4

Sovena in 2014: Global presence with direct operations in 7 countries and more than 70 export markets

Source: Sovena

5

Sovena supplies the most relevant retailers all over the world…

Source: Sovena

Europe North America

LatAm Asia – Pacific - Africa

Sovena sold over 200k Tons of Olive Oil in 2013

6

Sales

Packing

Sourcing

Agriculture

OO Value Chain Competitive Advantage

• Sovena is the only player with a strong presence in all the steps of the Olive Oil Value Chain

• This unique business model offers Sovena and its trading partners first hand, unrivaled market knowledge and know-how well beyond others

• Additionally, our sourcing, industrial and commercial capabilities and geographical locations are Best in Class in the industry to efficiently and effectively serve our customers

Source: Sovena

… Being the only relevant fully integrated player in the Olive Oil sector

7

Sovena has the largest olive grove on earth managed single handedly with more than 12.000 hectares

Elaia • Partnership with Atitlan • Investment +200 M€ • Control and traceability over 100% of

the supply chain of Olive Oil Olive Groves

• 12.000 hectares of olive groves in Portugal, Spain and Morocco

• The largest olive grove on earth single handed managed

Mills

• Spain • Portugal • Morocco • Chile

Agriculture

Source: Sovena

8

Sovena follows a dual tracking strategy (brand and private label) in our key markets….

Source: Nielsen, Sovena

… leveraging our private label business and volume

Quality brands with a competitive cost structure… Market

9

… Achieving brand leadership positions in relevant markets

Source: Nielsen, Sovena

Market leader in Portugal Oliveira da Serra

Second brand in Brazil Andorinha

28

12 9

3 3

0

10

20

30

Gallo Andorinha Borges Serrata Cocinero

Volume Share in Brazil 2013 (%)

18 17

3 2

0

10

20

30

Olivera da Serra Gallo Aldeão Serrata

Volume Share in Portugal 2013 (%)

10

Fontoliva is our global “first-price” brand

Source: Sovena

• Fontoliva is Sovena’s most international brand being present and successful in many markets

– Spain – Japan – India – Russia – United Kingdom – Germany – Slovakia – Rumania – Poland – Mauricio – Etc…

Superior value for money is Fontoliva’s key success driver

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Olivari is our new global brand project

Source: Sovena

12

Relevant consumer innovation is a key focus area Packaging examples

Sprays Bag on Valve Pop-Up pourer

13

Relevant consumer innovation is a key focus area Product examples

Olive Oil special for frying Veg Oil with reduced frying smell

14

Sovena is considered the Quality Gold Standard in the industry

SOVENA has all major certification from third parties…

… and from most demanding Customers worldwide

Source: Sovena

15

Our lab capabilities were critical to our recognition as the World’s Best Oil Mill in 2013/2014

• Product development teams – Certified taste panel (certified by ENAC) to

match required taste profile for the different markets

• On-site quality control lab with the ability to

do full IOC analysis – Quality and Purity Testing Lab full IOC

standards

• Quality control throughout the whole process conducted with external IOC certified lab

– Analysis done to our bulk purchases in several steps by independent parties: Pre-buying, pre-shipment, pre-loading, post-loading, pre-unloading, post-unloading

– Full traceability from each finished good lot back to each bulk purchase

• We are the only IOC certified lab in the US

Source: Sovena, IOC

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Agenda Agenda

SOVENA today Asia-Pacific Olive Oil consumption trends Japanese Olive Oil Market

17

Asia Pacific represents ~6% (~180k tons) of the worldwide olive oil consumption in 2013

Source: IOC

40

51

40 12

10 5 6 5 3 1 1 7 180

0

20

40

60

80

100

120

140

160

180

200

Olive Oil Consumption in 2013 (K tons)

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Significant unexploited potential in Asia Pacific when looking at consumption per capita

Source: IOC

Potential is huge even considering only consumers with sufficient purchasing power to buy OO by 2020

16,53

12,51

9,82

6,92

1,73 0,93 0,92 0,73 0,69 0,55 0,40 0,37 0,25 0,20 0,19 0,08 0,03 0,03 0,01 0,01

0

5

10

15

20

Olive Oil Consumption per Capita in 2013 (Kg)

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Olive oil consumption highly related to GDP except for Mediterranean countries due to cultural factors

0,0

0,5

1,0

1,5

2,0

2,5

3,0

0 10 20 30 40 50 60 70 80 90 100

Belgium

Argentina

Australia

Switzerland

Luxembourg

Slovenia

Consumption per capita 2013 (kg)

GDP per capita (k$ at PPP)

China Mexico

Russia

Brazil

Japan

Finland

Norway

Germany

Sweden

France

Netherlands

United States

United Kingdom

Canada

Austria

Source: IOC; EIU; Euromonitor; BCG analysis

0

5

10

15

20

0 10 20 30 40

GDP per capita (k$ at PPP)

Malta

Portugal

Italy

Greece

Spain

Cyprus Chile

Turkey

Tunisia

Syria

Morocco

Libya

Lebanon

Jordan Israel

Egypt

Croatia

Cyprus Algeria

Consumption per capita 2013 (kg)

In Mediterranean countries consumptions per

capita not correlated to GDP

Cultural factors more relevant

In the rest of countries, GDP plays a key role

Developing countries show lower levels of

consumption

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Our outlook for the olive oil in the Asia Pacific region is very positive

• Volume potential due to existing population

• Price as an entry barrier to be reduced − GDP development in the region (absolute and per capita) − Number of people with sufficient money to buy olive oil − Increase in volumes will help to avoid inefficiencies in the value chain − Gap vs. other oil substitutes to be reduced

• Development of the modern trade will impact positively in olive oil

• Consumer trends very positive for olive oil consumption

− Health is a Megatrend for the next 50 years − Western cuisine and lifestyle

• Consumer can be educated on olive oil consumption

− Promotion, Product positioning, Education on usage, Marketing, Institutional support, etc.

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Agenda Agenda

SOVENA today Asia-Pacific Olive Oil consumption trends Japanese Olive Oil Market

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Olive oil consumption in Japan has increased ~90% since 2000

20

25

30

35

40

45

50

55

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

1000 tons

Imports 8% higher during the first semester of 2014 comparing to 2013 Increase due to Extra Virgin olive oil, representing 75% of all imports in 2014

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Japanese market expected to have a moderate growth based on higher consumption per capita

• Market size of ~51k tons in 2013 with expected growth in next years

– Consumers are willing to pay a premium for functional foods

– Consumption per capita is 0,35 liter/year; low purchase frequency

• Market is 70% EVOO and 30% Pure: EVOO imports doubled since 2007

• Main origins are Italy and Spain, representing more than 90% olive oil

• Spain became the more important origin in 2013; a trend confirmed in 2014

Market profile

• Thanks to its healthy-related characteristics, olive oil has drawn the attention of

an aging population that is concerned with health related issues

– 40% of consumption is done by people older than 55; 65% are older than 40

• Key usage barriers are high prices and lack of knowledge on how to use olive oil

• Penetration at ~64% of the Japanese population

Consumers

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Local brands dominate the market, sourcing increasingly from Spain

• Distribution channels’ weight for olive oil: Retail (56%) + HORECA (21%) + Others (23%)

• Main retailers in Japan for olive oil: Aeon, Seiyu (Walmart), Seven & I

• Private label is very relevant in the Japanese market

• Small formats prevail (250ml, 500ml), specially in PET

• Consumer still associates Italy to higher quality olive oil, which explains the premium

paid compared to the olive oil coming Spain (~45% at import; ~23% at retail)

• The situation has been changing with local players recognizing more and more the

good quality/price relationship of the Spanish olive oil

• ‘Nishhin Oilio Group’ and ‘Ajinomoto Oil Mills’ control ~70% of the market

• Most relevant brands: Bosco, Ajinomoto, Filippo Berio, Bertolli, Carbonell, as well as

both AEON (Top Valu) and Ito Yokado (7&I) private labels

Retail market

Competitive environment

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Japan is a very challenging but rewarding market

• Quality

• Very demanding quality specifications, namely on pesticides’ residues.

• SOVENA has defined a specific Extra Virgin olive oil profile for the Japanese market

to comply with the strict regulations and with our clients’ demanding requirements.

• Tolerance

• Japanese clients’ accept the existence of a learning curve from their suppliers.

• However, they require responsiveness and immediate improvements.

• Partnership

• Once trust exists, the retention rate is very high.

• New business requires patience and to seek the opportunity when client decides to

change supplier.

• Quality survey remains (product, logistics). Sovena has set-up a policy of permanent

follow-up and close customer relationship management.

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Thank you.

www.sovenagroup.com www.olive-oil.com