SALIC

Corporate Strategy
Stakeholder Engagement

November 12th, Riyadh

1
 • SALIC Overview
• SALIC Strategy
Agenda • Socio-economic impact
• Agricultural Technologies Strategy

2
SALIC Overview
3
 SALIC, through its int’l footprint and recent consolidations, is serving its
purpose through its modus operandi
Overview Investment Portfolio
SALIC Establishment Investment Ownership Country Commodities Investment Strategy Commodities

The Saudi Agricultural and Livestock Investment

Hummingbird ~13%
Not Applicable 1 Wheat
Technologies (Agtech)
Company (SALIC) w as established in 2009 by
Royal Decree M22 as joint stock company ow ned Continental
Barley
100%
by the Saudi Public Investment Fund (PIF) Farmers Group
Corn
Merredin Farms 100%

International
Soybean
International
SALIC Purpose G3 Global 75%
Holding Rice
SALIC invests inside and outside KSA in Olam Agri ~35%
agricultural and livestock activities to support Holdings 2 Fodder
national food security aspirations by securing
strategic food products and stabilizing their prices
LT Foods ~9.2% Milk Powder
Minerva Foods 35% 8 Countries 14 Investments Edible Oil
SALIC Modus Operandi
~34% Agri-food Value Chain Portfolio Coverage Sugar
Minerva Foods
Red Meat
Establish subsidiary companies by Inputs Farm . Sourc. Proc. Trad. Stor. Distr. Retail
1 BRF S.A ~10.7%
investing in agri-food business Poultry
National Grain
Establish strategic partnerships ~50%

Global
2
and/or non-equity alliances
Com pany Fish
Almarai ~16%
Local

Expand the capabilities of its Dairy by-

Local
3
portfolio companies
Nadec ~38% Products

Local
4
Establish commercial capabilities Fruits
(e.g., trading, storage) Alasmak ~40%
Vegetables
Naqua ~42%
Table Eggs
Note: BRF acquisition is pending finalization and legal review
4
 SALIC Journey

United Farmers Holding Minerva Foods Brazil Continental Farmers Dawaat Foods Minerva Foods Transfer of PIF Assets ALC (2022) BRF (2023)
Company (2013) (2016) Group (2019) (2020) Australia (2021) (2021) Received PIF’s Announced the Announced the intention
was established as a Acquired ~19.5% of Acquired 100% of Acquired ~30% of Established a JV with shares in Almarai completion of ALC to acquire up to ~10.7%
cooperation among Minerva Foods Brazil, Continental Farmers Dawaat Foods, a leading Minerva Foods Brazil, (~16%), NADEC (~20% acquisition, one of the of BRF Brazil, one of the
SALIC, Almarai, Saudi one of the largest meat Group, a company that Indian producer of with a ~35% share, to 2020 & increased share biggest meat producers biggest poultry
Grain and Feed Holding production companies in specializes in grain basmati rice for take control of two to 38.65% 2023), and Al in Australia. The producers in Brazil. The
Co., and (UFHC) has S. America and the production with ~200K domestic and export factories that skin and Asmak (~40%) acquisition is through company is present 117
acquired an agriculture second largest exporter Ha of land in West markets process red meat in MFA, which is SALIC’s JV countries and exports to
Company in Ukraine. of meat in Brazil Ukraine Australia with Minerva Foods in over 150 countries
Australia

2009 2013 2015 2016 2019 2020 2022 2023

G3 Global Holding National Grain Company Olam Agri Holdings LT Foods NAQUA (2023)
SALIC Establishment (2015) Merredin Farms Hummingbird (2020) (2022) (2022) Announced the
(2009) Established a JV with Australia (2019) Established a JV with Announced agreement to Announced acquisition of completion of
Established as a subsidiary Bunge Ltd in Canada, (2019) Acquired ~14% of Bahri that aims to acquire ~35% of Olam Agri 9.2% of LT Foods, one of acquisition of 42.4% of
of PIF, with a core with a 75% share, to Acquired 100% of Hummingbird, a UK based establish a terminal for Holdings, one of the India’s leading rice NAQUA one of the
mandate to invest in take control of a Merredin Farms, western Agtech startup that uses handling grains at Yanbu world’s leading processing companies largest vertically
agricultural and livestock national grain handling Australia’s largest grain drone and artificial Commercial Port commodity trading & (Parent Company of integrated aquaculture
businesses to support and trading company farmer, with ~200K Ha of intelligence to provide processing companies Dawaat Foods) producers in the world
national food security land covering grain and advanced crop analytics to located in Al-Lith, Saudi
livestock production farmers Arabia

5
 KSA’s food security performance lags major international and regional economies and is
coupled with a significant agri-food trade balance deficit

Global Food Security Index Agri-food Trade Balance1

(Select Countries’ Ranking and Score, 2022) (Selected G20, 2021, % of GDP)

1 2 3 5 Rank Change
-3 since 2020
9 15 5.54
24 30 40 41 1.75
0.95 0.43
84.0
81.3 81.0
0.01
80.4 79.1 77.4 73.6 72.2 70.0 68.1
-0.24 -0.24
-1.12 -1.13
-2.23

Ireland Austria United Switzer- United Singapore Qatar Kuwait Oman KSA
Kingdom land States Brazil Australia Canada Turkey USA Russia Germany UK Japan KSA

Indicator Rank Challenge Key Notes

Affordability 53 Increase in average food cost

▪ In 2019, KSA had a trade balance (% of GDP) -2.09 and one of the biggest
Availability 20 Decrease in supply sufficiency among G20 countries
Quality & Safety 44 Low dietary diversity and protein quality ▪ This high reliance on imports results in vulnerabilities to global supply chain
Natural Resources & Resilience 84 Low resilience / High water resources risk disruptions and fluctuations in prices impacting affordability and availability

1. Tra de Balance Ratio is defined as (Exports - Imports) / Imports X Ranking

Source: GFSI – Economist Impact, FAO, World Bank, Team analysis
6
SALIC strategy is aligned with several directions and recommendations
emphasizing the need to set up a national agri-food champion

Vision 2030 Government Directions

1 Sufficient strategic food reserves

National Food Security Strategy

Contribution to Investment Abroad Program

2 Optimal use of water resources Set-up a national agri-food
champion to achieve the
following objectives: National Agriculture
1
Transform economic value addition & local Strategy (NAS)
3 Reduced resource waste productivity
Contribution to the reduction of trade
Accelerate economic diversification and expansion to new balance deficit
2
markets

Countries strategic 3 Build and grow expertise in certain sectors and acquire or create IP Saudi Global
4 Enterprises
partnerships
4 Generate job opportunities for Saudis, both domestically and abroad Global Champion
Mandate
5 Enhance KSA’s perception and brand worldwide

Government Recommendation

7
SALIC plays two significant roles in Kingdom Food Security Program

1 Steady State Role 2 Emergency / Crisis Time Role

“Investment-focused” “Trading-focused”

International Local Crisis Price

Investments Enablement management stabilization
Investments in Enable local production Secure supply chain and Controlling volatility
production, sourcing of key agri-food maintain food in prices to ensure
commodities to reduce availability and access
and origination across to all residents of KSA food affordability for
the 12 strategic import reliance and KSA residents
during emergency
commodities expand exports situations

Consistent
Supply chain Trading Logistics
supply
Bringing the strategic Build operations along Setup trading desks in Form strategic
commodities to KSA the entire supply markets with significant partnerships / acquire
investments to mitigate leading logistics players
on a regular basis to chain, establishing a exposure and
fulfill the minimum vertically integrated to ensure efficient
availability risk in case distribution network
contribution agri-food value chain of crisis

Local Boost Ag- Supply Strategic

distribution tech Agreements reserves
Development of the Support projects in and Develop trade and Operate strategic
agri-food infrastructure AgTech to boost local supply agreements with reserves in KSA for
(e.g., cold network, production efficiency priority clauses and first storing essential /
storage) in KSA by and increase local self- right of purchase in case
partnering with private staple grains
sector players sufficiency in KSA of emergencies

8
SALIC Strategy

9
 SALIC’s organizational remit significantly expanded Post 2020 to include
three mandates
2022
Define SALIC role in improving Saudi agri-
food trade deficit

2021 International & Local Focus

Grow SALIC into a Food Security Leader
and a Global Champion
Local Agri-food
Sector Enabler
2018 International & Local Focus
Put SALIC on a strategic course
+
Global Agri-food Global Agri-food
Champion Champion

International Focus
+ +
Agriculture Food
Security Food Security Leader Food Security Leader

Major
Events
Building of portfolio Foundation Covid-19 Strategy PIF transfer of Global Champion Strategy Alignment with NAS/Trade SALIC Consolidated
(G3, CFG, MDF) Strategy Project Refresh 1.0 Asset Mandate Refresh 2.0 Balance study Strategy
10
 SALIC’s organizational remit encompasses three mandates, namely,
Food Security (FS), Global Champion, Local Agri-food Sector Enabler (LASE)
CORE MANDATE Food Security Leader (FS)
Become a sustainable and fully integrated food security leader, supporting
national food security aspirations
12 Commodities Covered
Animal Diversified
Grains
6 Proteins 3 Products 3

Local Agri-food Global Champion

Sector Enabler (LASE)

Enable local production of key agri-food Develop a leading global presence in the
commodities to reduce import reliance agri-food sector through international
and expand exports investments & partnerships

87 Commodities Covered 9 Commodities Covered

Other NAS e Animal Diversified

Grains
Products Proteins Products
4 4 6 3

Local Local Int’l Int’l

Geographic Focus of Investments
(2024 – 2030) (2028 – 2030)

1. National Agriculture Strategy; 2. Includes fruits, vegetables, dairy byproducts, and table eggs X Number of Commodities
11
 SALIC has developed 5 strategic pillars to ensure fulfillment of its 3
mandates and achievement of targets
Local Agri-food Sector Enabler (LASE) Food Security Leader (FS) Global Champion

Enable local production of key agri-food Develop a leading global presence

commodities to reduce import reliance in the agri-food sector through
and expand exports international investments &
partnerships

P1 P2 P3 P4 P5
Strategic Global Food Security and Agri- Productivity and Innovation
Pillars Leading Grain and DP Cham pion Agri-food Players Activator Supply Chain Enabler
food Investor Catalyst

Key Goal Securing Origins Securing Trading Capabilities Securing Local Production Securing Supply Chain Securing Ag-tech

Diversify investments and Invest in local upstream

Develop integrated trading Elevate logistics operations to Boost productivity and im prove
Key secure supply agreements for
capabilities & Enhance presence
operations & Upscale
enhance KSA’s value chain resources sustainability &
strategic commodities & grow capabilities of local sector &
Objectives global input capabilities
in global m arkets
strengthen export capabilities
resilience strengthen Agtech position

Investment International International International & International &

Domestic Investments
Focus Investments Investments Domestic Investment Domestic Investment

FS: 0 Trading Desk/office LASE: <1Mn tons Logistics and Storage Ag-tech Investment:
Baseline FS: ~10 Mn tons
GC: ~18 Mn Tons LASE: 700Mn SAR Investment: 0.02 Bn SAR 5 Mn SAR

FS: 3 Trading Desk/office

LASE: ~2.6Mn tons Logistics and Storage
2030 (~3-5 Mn Tons) Ag-tech Investments
FS: ~20 Mn Tons Investments
Targets GC: Volume Handled LASE: ~35Bn SAR (~5 Bn SAR)
(3.4 Bn SAR)
(~50 Mn Tons)

12
1. Impact on GDP is derived by adding estimated direct (total output excluding intermediaries) and indirect GDP contribution (using industry multipliers) resulting from the trade balance improvement across the seven prioritized commodities
 SALIC Triple mandates

CORE MANDATE Food Security Leader (FS)

Become a sustainable and fully integrated food security leader, supporting
national food security aspirations
12 Commodities Covered
Animal Diversified
Grains
6 Proteins 3 Products 3

Detailed in next slides

Local Agri-food Global Champion

Sector Enabler (LASE)

Enable local production of key agri-food Develop a leading global presence in the
commodities to reduce import reliance agri-food sector through international
and expand exports investments & partnerships

8 Commodities Covered 8 Commodities Covered

Other NAS e Animal Diversified

Grains
Products Proteins Products
4 4 4 4

Local Local Int’l Int’l

(2024 – 2030) Geographic Focus of Investments (2028 – 2030)

1. National Agriculture Strategy; 2. Includes fruits, vegetables, dairy byproducts, and table eggs X Number of Commodities 13
 As part of its food security mandate, SALIC will mainly focus on achieving
Volumes targets across 12 strategic commodities
Food Security Leader Mandate

Key SALIC Food Security Targets SALIC Strategic Commodities

Key Metric Description Target (2027,%1)
Grains Fodder
The volume of strategic commodities
attributed to SALIC, through
international production/sourcing2 and ~20Mn
trading3, relative to the forecasted tons4 Wheat Barley Corn Soybeans Fodder
Coverage KSA demand for strategic
commodities in 2030
~10Mn Animal Proteins

Volume Formula
Red Meat (Beef & Sheep) Poultry Meat Fish Meat

Stake in acquired Volume Handled Volume Accounted for

Company x by Subsidiary = Salic
Diversified Products
Example

30% 100 KT 30 KT

Rice Sugar Edible Oils Milk Powder

Other Food Security Focus Areas

INPUTS LOGISTICS AND STORAGE AGTECH

Baseline (2022)
Note: The targets indicated are cascaded to the commodity level later in the Consolidated Strategy; 1. As % of KSA Demand in 2030; 2. Production/Sourcing refers to purchasing equity in agri-food businesses (e.g., production and processing businesses), whereby SALIC realizes coverage contributions in proportion to SALIC’s equity share in the
businesses; 3.Trading refers to buying/selling of commodity contracts, through SALIC established trading desks, whereby SALIC realizes cov erage contributions in line with the volume specified by the contracts; 4. The figure represents an aggregation of the coverage targets articulated at the commodity level;5. Supply Agreements refers to
arrangements made with producers to earmark commodities for import into KSA
14
 SALIC’s investment landscape remains focused on eight regions and twelve strategic
commodities, while exploring potential future expansions
Food Security Leader Mandate

Grains Fodder Animal Proteins​ Diversified Products​

Wheat Barley Corn Soybean​ Fodder Beef Goat/ Sheep Poultry Sugar Oils P. Milk Rice

Indian
Subcontinent

North
America ⬥ ⬥ ⬥
Black
Sea ⬥
South
America ⬥ ⬥ ⬥ ⬥ ⬥
Oceania ⬥ ⬥
Horn of Africa ⬥
Western
& Central Euro ⬥ ⬥ ⬥ ⬥ ⬥ ⬥
pe
Southeast
Asia ⬥
Current SALIC Presence Prioritized Focus Investment ⬥ Potential Future Investment

15
 SALIC Triple mandates
CORE MANDATE Food Security Leader (FS)
Become a sustainable and fully integrated food security leader, supporting
national food security aspirations
12 Commodities Covered
Animal Diversified
Grains
6 Proteins 3 Products 3

Local Agri-food Global Champion

Sector Enabler (LASE)

Enable local production of key agri-food Develop a leading global presence in the
commodities to reduce import reliance agri-food sector through international
and expand exports investments & partnerships

8 Commodities Covered 8 Commodities Covered

Other NAS e Animal Diversified

Grains
Products Proteins Products
4 4 4 4

Local Local Int’l Int’l

(2024 – 2030) Geographic Focus of Investments
(2028 – 2030)
Detailed in next slides
1. National Agriculture Strategy; 2. Includes fruits, vegetables, dairy byproducts, and table eggs X Number of Commodities

16
 SALIC will contribute to three trade balance improvement measures
identified by MEWA’s Trade Balance Study
Trade Balance Study Improvement Measures Responsible Stakeholder Other Relevant Stakeholders
1.1 Reduce consumption

2.1 Further reduce food waste & loss

3.1 Improve crop yields (moderate scenario)

3.2 Improve crop yields (agressive technical scenario)

4.1 Modify crop mix

4.2 Further increase Treated Sewage Effluent (TSE) re-use

5.1 Further increase production of animal-based products

6.1 Expand priority processed foods (based on NIS)

6.2 Expand other processed foods

6.3 Further increase exports of processed foods

7.1 Develop “foods of the future” sector (moderate scenario)

7.2 Develop “foods of the future” sector (aggressive scenario)

8.1 Expand re-exports

9.1 Optimize trade portfolio

No Immediate SALIC Contribution to Measure High SALIC Contribution to Measure

17
 Starting with a long list of commodities, analysis across the value chain was
conducted to evaluate where SALIC should play
Local Agri-food Sector Enabler (LASE) Mandate
Animal Diversified Other National Agriculture Strategy
Grains
Proteins Products (NAS) Prioritized Products

Product Value
Chain Plays

Inputs

Farming/ Production

Sourcing

Processing

Trading

Storage & Distribution

Trade Balance (TB)

Improvement Potential 3% NA NA NA NA NA 4% 10% 7% 6% 2% 1% 2% 10% 9% 4% 17% 1% <1%
(%)2

Trade balance improvement relevant PIF moderate PIF major SALIC3 existing SALIC3 planned SALIC3 existing SALIC3 planned
product value chain plays investment investment local investments local investments international investments international investments
18
1. Includes preserved vegetables and fruits products; 2. Derived by accounting for the TB improvement of each product relative to the TB improvement of28 products with a positive TB contribution by 2030 (i.e., 231 Bn SAR); 3. Refers to SALIC and its portfolio companies;
 Assessment across five criteria, alongside steering committee directions, resulted in a
shortlist of seven focus products under SALIC’s new mandate
Local Agri-food Sector Enabler (LASE) Mandate
Short List of Product Value Chain Plays
Longlist of Product Value Chains Plays1 Shortlisting Criteria2 (for SALIC’s new mandate as a Local Agri-food Sector Enabler)

1
Red Inputs Production Processing Distribution
Grains/Grasses Fruits Meat

2
Poultry Inputs Production Processing Distribution
Meat
Red Meat Vegetables

Prioritized Products
3 Fish Inputs Production Processing Distribution
Meat

Poultry Meat Dairy 4 Fruits Inputs Production Processing Distribution

5 Vegetables 3 Inputs Production Processing Distribution

Fish Meat Eggs

6
Dairy Inputs Production Processing Distribution
Byproducts 4
Sugar Baby Food Fit with SALIC and Its
Alignment with Food Table
Portfolio Companies’ 7 Inputs Production Processing Distribution
Security Leader Focus Areas e Eggs
Capabilities

Deprioritized Products
Edible Oils Dates 8 Sugar
Fit with MEWA’s Aspirations Contribution to Agri-food
(Enablement of NAS 2030) Trade Balance Improvement 9
Grains/
Grasses Products deprioritized given
Powdered Milk Coffee private sector does not
Edible require immediate support,
10
Synergies with PIF Oils but may necessitate SALIC’s
Ongoing Investments contribution in the future
Honey 11
Baby based on market dynamics
Food

Strategic Product Other Product Additional Focus Product for SALIC

1. Longlist of value chain plays per commodity has not been shown for clarity of illustrations; 2. Criteria assessment detailed in Appendix; 3. Includes preserved vegetables; 4. Includes fresh dairy used as input for dairy byproducts;
Source: MEWA, Team analysis 19
Thus, SALIC will support in reducing the agri-food trade balance (TB) by locally investing
in eight key commodities, as part of its LASE mandate
Local Agri-food Sector Enabler (LASE) Mandate
LASE Shortlisted LASE Local Production
MEWA TB Deficit Target (Bn SAR) SALIC’s Role to Support Deficit Reduction Commodities Target (2030; ‘000 Tons)
140 Red Meat - Beef 21 30%
Increase Focus on New
Commodities Prioritized by Red Meat - Sheep 47 30%
MEWA
-79% Poultry Meat 520 27%
68 Fish Meat 151 34%

Augment Local Investments Fruits 794 25%

30
to Account for New
Vegetables 814 25%
Commodity Targets
Dairy Byproducts 175 35%
2019 2030 2030
(Actual) (Baseline) (Target ) Table Eggs 95 35%
Expand Investments to
Improve Supply Chain & Total Prioritized 2,618 26%
Assumes a Population of Connectivity with Export
50 Mn by 2030 Markets
Sugar 1,151 35%

Includes Targets Across 35 Edible Oil 116 29%

Commodities Baby Food 2 35%
Requires 516 Bn SAR of Enable Increase in Agtech
Grains/Grasses 55 35%
Investments (66% private Penetration in KSA
sector / 34% public sector) Total 3,949 29%

SALIC should aim to contribute 30% (~35 Bn SAR) of the trade balance improvement
Other LASE Focus Areas investment required for the shortlisted products

INPUTS LOGISTICS AND STORAGE AGTECH

LASE’s Share of MEWA TB Private Sector Local Production Target (2030) 20
MEWA RDI strategy has been taken into account for SALIC Ag-tech strategy, in which key
priority is to reduce the food trade balance to a target of SAR ~30 Bn by 2030
Local Agri-food Sector Enabler (LASE) Mandate

21
 SALIC Triple Mandates

CORE MANDATE Food Security Leader (FS)

Become a sustainable and fully integrated food security leader, supporting
national food security aspirations
12 Commodities Covered
Animal Diversified
Grains
6 Proteins 3 Products 3

Local Agri-food Global Champion

Sector Enabler (LASE)

Enable local production of key agri-food Develop a leading global presence in the
commodities to reduce import reliance agri-food sector through international
and expand exports investments & partnerships

8 Commodities Covered 8 Commodities Covered

Other NAS e Animal Diversified

Grains
Products Proteins Products
4 4 4 4

Local Local Int’l Int’l

Geographic Focus of Investments (2028 – 2030)
(2024 – 2030) Detailed in next slides

1. National Agriculture Strategy; 2. Includes fruits, vegetables, dairy byproducts, and table eggs X Number of Commodities

22
 Once SALIC reaches its food security mandate targets, it will seek to position itself
amongst the top ten agri-food players by volume handled
Global Champion Mandate Global Champion Mandate Target and Commodities
Top Grain Agri-food Players by Volume (2020 & 2030F; Mn
Global Champion Target Tons)

(2030; Mn Tons) Rank 2020 2030F

Category Strategic Commodity
1 200+ 250+

2
Wheat
100 - 150 120 - 180

3 100 - 150 120 - 180 Barley

Recently announced merger

Grains
4 50 - 100 60 - 120
~50 Mn Corn
5 50 - 100 60 - 120
Tons Soybeans
of Grains and Diversified Products Attrib uted 6 50 - 100 60 - 120
to SALIC Through Production/Sourcing and
Trading to Rank Among Top 10 Comparable
4 40 - 75 50 - 90
Rice
Agri-food Players 7

8 ~40 ~50 Sugar

SALIC GC Ambition Diversified
Additional Food Global Champion 9 ~35 ~45 Products
Current
Contributions
Security Leader Target Volume Edible Oils
[2022] Contributions Gap
[2023 – 2027] [2028 – 2030]
(~10 Mn Tons)
(~10 Mn Tons) (~30 Mn Tons)
10 ~20 ~25
Milk Powder
Path to Global Cham pion Target (2030; Mn Tons)
5 10x ~50

1. The LASE ma ndate does not contribute to the Global Champion target; 23
 SALIC global prescence will leverage its international trading desk, its international investments
and local portfolio
Value Chain Origination International Trading Distribution / Processing
Origination Trading International Trading Destination Trading
Value Chain EXW / CPT FOB CIF FOT End
Farmer Consumer

Europe
FOB

FOB

CIF
Asia

North & South FOB

America FOB
MENA
MENA Regional Hub

Regional Trading Desks

Integrated Global Trading Desks

KSA Strategic Reserves

FOB

International Strategic Reserves Sub-Saharan

Procurement Desks
Africa
Australasia

FOB: Free on Board; CIF: Cost, Insurance, Freight

24
In summary, SALIC has set commodity volume related targets for each of its
three mandates, to be achieved by 2030
Food Security Leader Global Champion
(2022 – 2027) (2028 – 2030)
Coverage1 International Volume Handled3
Target: 50% of KSA Demand Target: Attain Top 10 Ranking by Volume Count
2022 2027 2030

10 Mn
Tons ~20 Mn ~50 Mn
Tons Tons

Local Agri-food Sector Enabler

(2024 – 2030)
Local Production/Sourcing2
Target: 26% of MEWA Trade Balance Local Production Target
2024 2030

<1 Mn ~2.6
Tons
Mn
Tons

1. Volume of strategic commodities attributed to SALIC, through international production/sourcing and trading; 2. Volume of LASE specific commodities attributed to SALIC, through local production/sourcing, to support the realization of national agri-food trade balance; 3. Volume of grains and

25
diversified products attributed to SALIC through international production/sourcing and trading
Source: Team analysis
SALIC will aim to meet its commodity volume targets through core activities in
production/sourcing and trading, and proactive investments in the value chain
Mechanisms to Meet Commodity
Volume Targets *Non-exhaustive

Production/Sourcing Inputs

Grandparent/
Fertilizers/Seeds Alternative Feed Parent Farms

SALIC invests in international agri-

food businesses (e.g., production
Pesticides Yeast Sustainable Fish
and processing businesses) and
realizes coverage contributions in
proportion to its equity share in
the businesses
Logistics & Storage

Animal Protein B2C Logistics Merger with Cold storage

Distribution Company NGC 1 Infrastructure

Trading Yanbu Grain Terminal

West Coast Grain Terminal &
Port Facility
Eastern Province Grain
Terminal & Port Facility

SALIC enters into agreements to Agtech

buy or sell commodities, through
its established trading desks, and Cultured Meat
Hydroponics Aquaponics
(lab-grown meat)2
realizes coverage contributions in
line with the cumulative volume
set by entered agreements Saltwater Farming Precision Applications
Genetic Improvement of
Farmed Animals

1. National Grains Company; 2 : Excludes other alternative proteins (e.g., plant-based proteins, insect-based proteins) as PIF is planning to lead investments in these areas
Source: Team analysis
26
Socio-economic Impact

27
By 2030, SALIC will make significant contributions to GDP, the agricultural trade deficit,
and job creation through its diversified investments

Impact on National GDP Impact on Trade Deficit Impact on Local Job Creation
(Bn SAR) (Bn SAR) (‘000 Jobs)

~41.1 Bn ~38.9 Bn ~100 K

SAR SAR Jobs

SALIC’s contribution to SALIC’s contribution to

agriculture GDP is estimated to reach 14% in 20301 self-sufficiency is estimated to reach 21% in 20302

Key Assumptions

▪ Impact on GDP is derived by adding estimated direct (total output excluding intermediaries) and indirect GDP contribution (us ing industry multipliers) resulting from
the trade balance improvement across the seven prioritized commodities
▪ Impact on trade deficit is based on SALIC’s target TB contribution assumption of 30% (after accounting for private sector and PIF contribution)
▪ Impact on job creation calculation assumes an annual workforce productivity improvement of ~1% and an annual inflation rate of 3%
• 1. Based on (i) the Agri-food TB study forecast of national agriculture direct GDP reaching ~180 Bn SAR in 2030 and (ii) SALIC direct GDP contributions amounting to approximately 24 Bn SAR in 2030; 2. Based on prioritized commodities self-sufficiency reaching 117%
in 2030 (compared to 68% in 2020);
28
To execute its mandates, SALIC will balance multiple
roles and responsibilities
Financial “Food security driven with financial
1 Strategic objectives FS GC LASE
sustainability sustainability in mind”

“Steady state driven, but crisis-time

2 Food security role Steady-state Crisis-time
ready”

“Global food coverage focus with select

3 Fields of play International Domestic
strategic KSA plays”

“Food security investor with agile trading

4 Execution model Investments Trading
capabilities”

Ambitious Corporate risk “Overlaying ambitions with calculated

5 Risk and reward scale & growth and ESG risk and governance”

29
Agricultural Technologies Strategy

30
Key parameters considered for framing the SALIC AgTech strategy

Local Agri-food Sector Enabler (LASE) Mandate

What does sustainable food production mean for KSA?

Efficient use of water Optimal usage of land Less Ag inputs Livestock welfare Minimal manpower

Employing water-efficient Optimizing land use Implementing precise and Upholding high standards Leveraging automation
practices to support through strategic crop sustainable input of animal welfare through and smart farming
agricultural production in selection and innovative management to reduce ethical practices and solutions to optimize
KSA farming practices that environmental impact policies that prioritize the operations with reduced
maximize yield per unit of while ensuring crop health well-being of livestock and reliance on expensive
land and productivity minimize GHG emissions human resource

Elements of
sustainable food
production in KSA
31
Seek globally and build value locally

SALIC's AgTech investment strategy would aim to "Seek innovations globally" and
“Build value locally" to fulfill its KSA tech centricity and food security objectives
Guiding principles to structure SALIC’s AgTech investment strategy1

Strategy: The AgTech workstream will seek a

portfolio of mature/scalable innovations and
disruptive innovations globally to build value
locally in KSA

Seek innovations Build value Deal sourcing: Frameworks would be defined to

assist future deal sourcing integrating both
GLOBALLY LOCALLY proprietary efforts (e.g., sourcing deals from
conferences, CEO connects, etc.) as well as via tech-
Seek innovations enabled sources (using technologies such as
GLOBALLY generative AI)

Localization: AgTech investments would facilitate

localization of invested innovations through
Seek both mature and breakthrough innovation to private players, NewCos/Portcos, tech enablers
support KSA’s Vision 2030 goals in agriculture and regulators

1. Adopted from internal SALIC documents

Source: Team input 32

Seek globally and build value locally

SALIC’s AgTech investment strategy would ensure it adequately mitigates identified

challenges to realize prioritized objectives
NON-EXHAUSTIVE

Overview of key prioritization areas, challenges identified and mitigation activities

Prioritization Challenges Mitigation activities

Meet strategic goals Greenfield risks/stretched • Co-investments/JVs/Partnerships with
(enhance sustainable food security, reduce trade balance deficit, payback large conglomerates/institutions
increase exports, increase self-sufficiency, overcome commodity • Invest in mature technologies
bottlenecks with minimal resources (land, water, etc)
• Board Seats at KSA JV/Project level to
Transform KSA to be a Center of Excellence and an ensure Project timelines
Innovation Hub
High valuation • Hybrid investments: Explore investment in
both HoldCo and KSA Project Level.
• Ensure SALIC has enough say/seat where IP
Increase high-tech employment of the technology lies

Product offtake risks • Align with SALIC NewCos and SALIC

Portfolio companies

Enable Private Sector participation

Regulatory risks • Need to have synergy with Regulators

Source: Team input 33

 We identified potential AgTech areas based on an evaluation of 200+ technologies
across 55 technology groups
Local Agri-food Sector Enabler (LASE) Mandate

AgTech (including foodtech) Food commerce3

Upstream: (pre-) production to farm gate Midstream: farm gate to consumer Downstream: consumer2
A1 A2 A3 A4 A5 A11 A12 A13 A14 A15 A21 A22 A23
Pest & Quality Retail & Consumer Nutritional
Biotech & Irrigation Storage & Sorting & Processing
Crop inputs Seeding disease Harvesting Control & Distribution Behavior Analysis &
genetics systems preservat. Grading & Packaging
Crops mgmt. Safety Tech Analysis Labeling
A6 A7 A8 A9 A10 A16 A17 A18 A19 A20 A24 A25 A26
Controlled Soil Other Market & Other (e.g., E-comm. & Direct to
Precision Agricultural Logistics & Traceability Waste
environ. manageme (Satellite Pricing plant mat. digital consumer Other
agriculture robotics transport tech mgmt.
agriculture nt systems imagery) Analytics mont.1 platforms Tech

B1 B2 B3 B4 B5 B11 B12 B13 B14 B15 B21 B22 B23

Animal Animal Pest & Quality Retail & Consumer Nutritional
Biotech & Watering Slaughter / Storage & Sorting & Processing
Animal genetics
nutrition & Rearing disease
systems harvesting preservat. Grading & Packaging
Control & Distribution Behavior Analysis &
Proteins feed mgmt Systems mgmt. Safety Tech Analysis Labeling
(Meat & Fish) B6 B7 B8 B9 B10 B16 B17 B18 B19 B20 B24 B25 B26
Animal Precision Other (e.g., Market & Other (e.g. E-comm. & Direct to
Animal Logistics & Traceability Waste
health Land mgmt. husbandry
robotics
herd mgmt.
transport tech mgmt.
Pricing cultured digital consumer Other
monitoring & fishing software) Analytics meat) platforms Tech

C1 Advanced hardware (drone, satellite IoT)

C. Enabler
C2 Advanced analytics & software (artificial intelligence, digital twins, virtual reality, AR/VR etc.)
C3 Marketplace, Agri FinTech (parametric insurance, etc.)

1. Plant maturity monitoring

2. All downstream technologies will be covered by C. Enabler. Goals is to enable commodity production where the downstream is no t involved
3. Food commerce solutions are deprioritized as part of the assessment
34
Evaluate AgTech on KSA/SALIC criteria

The Technologies were further mapped across commodity value chains to overcome
production bottlenecks
NON-EXHAUSTIVE x% Self sufficiency (local production 2020 vs NAS target 2030E)

Overview of commodity-level NAS targets, value chain bottlenecks, and drivers behind bottlenecks
Self-sufficiency in 2030E < 20%
Self-sufficiency in 2030E > 20% Water challenge Land challenge Operational challenge Energy challenge
NAS 2030
Commodity target, kt Value chain bottlenecks and self-sufficiency (2030E) gaps Examples of bottleneck drivers Illustrative AgTech solutions
Feed sourcing Feed mills Vaccines & health GP genetics GP production Broiler prod. Processing
KSA ha s insufficient water and arable Al ternative feed, va ccination, GP
Broiler meat 2,793 l a nd to produce feed locally genetics/breeding, alternative proteins
Feed sourcing Feed mills Vaccines & health Parents prod. Layer prod. Egg
prod./proc. KSA rel i es on i mports for feed a nd Al ternative feed, Vaccination, aanimal
Table eggs 620
pa rents sourcing genetics/breeding, Alt fermentation
Feed sourcing Feed mills Vaccines & health Genetics Harvesting/farming/primary proc.
KSA i mports all a quafeed and processing Al ternative feed, va ccination,
Seafood 614 i nfrastructure genetics/breeding, feeding tech, RAS
Feed sourcing Feed mills Vaccines & health Breeding/fattening/trading Processing
KSA ha s high dependence on i mports for Al ternative feed, va ccination, GP
Red meat 506 feed & l ivestock genetics/breeding, alternative proteins
Feed sourcing Feed mills Vaccines & health Milk production Milk processing
KSA i s dependent on i mports for poultry Al ternative fermentation/cultured tech.
Dairy byproducts 941
feeds, dairy yeasts and ferments
Seeds Nursery/ farming/trading/primary processing
KSA ha s insufficient water, land, and high Crop/s eed genetics, greenhouse, verti cal
Fruits & vegetables 10,056
production cost fa rms , microbial solns, food preservation
Milk Fats Other (ARA, DHA, thickeners) Drying/mixing/canning
KSA i s unable to utilize i ts existing full Al ternative fermentation/cultured tech.
Baby formula 19
processing capacity of 20kt (2020)
Sugar cane Melting and filtration
4,628 KSA ha s harsh climate for s ugar ca ne Crop genetics/genomics, precision
Sugar
production with i t being water i ntensive fermentation, enzymatic process
Farm/trade Clarification/refining
Edible oil 930 KSA ha s high dependence on s eed/crop Crop/s eed genetics, smart management
i mports required for edible oils (AI, bi g data), i ncl. traceability s ensors
Fertilizers & crop protection Seeds Wheat bran Barley grain Corn grain
KSA ha s limited access to tailored seeds Crop/s eed genetics, microbial/pest
Grains and grasses 793 a nd K fertilizers for the l ocal arid-climate di s ease, micro/drip i rrigation
Source: SALIC commodity bluebook 35
 Based on KSA-specific challenges, we then developed a detailed evaluation
methodology to prioritize AgTech investment opportunities within each commodity
Local Agri-food Sector Enabler (LASE) Mandate

Overview of evaluation criteria X Step number Mature: High SFS, High TM Disruptive: High SFS, Low TM

Technology Example of final technology prioritization matrix

Technology evaluation and filtering process
universe

1 3A Animal Crop
Resource effic.2 Land
Sustainable
Yes Higher than 3
Food Security Processing effic.3 Water 1 4
impact No
Pain point sol. Energy
evaluation

Sustainable food security impact

Pest & dis. Pest & dis.
3 or lower
Yield4 Yield
Tech #155
Trade balance Trade balance

2 Self sufficiency Self sufficiency

Higher than 3
Commodity
applicability 3B Adoption Disruptive Mature
Yes Regulation
No Tech maturity Yes
evaluation Training req. No
Scalability

Excluded Cost
3 or lower
Execution time

Tech maturity

1. We assigned water greater importance when evaluating based on food security impact criteria
2. Aggregated metric for water, land, and energy use efficiency
3. Processing efficiency was included as a metric given the greater processing needs of animal products compared to crops
4. We assigned yield greater importance when evaluating for animal AgTech
36
Priorities investments amongst the identified AgTech solutions

…...and key focus areas were identified for investments until 2030E

Fruits & Vegetables Animal Proteins

1 Soil management 1 Animal genetics/breeding

Greenhouse material/advance material tech/climate proofing

2 2 Animal health(vaccination)/nutrition
technology

3 Alternative Farming
3 Alternative protein
4 Robotics
4 Alternative feed

Seed tech/CRIPSR/Genetics , eg: drought resistant seeds, gene

5
editing of seeds 5 Robotics

6 Smart irrigation/Water Tech

6 Smart farm management (AI/IOT/ML/Satellite imagery)
7 Smart farm management (AI/IOT/ML/Satellite imagery)
7 Precision/biomass fermentation
8 Microbial solutions
9 Pest/disease solutions 8 RAS (red sea fishes related)

10 Digital marketplace 9 Digital marketplace

Source: Team input 37

Identify investment vehicles

In summary, the AgTech Investments would focus on relatively later stage

investments, maximizing reward potential and mitigating risk exposure
Technology risk filtration- Risk-adjusted portfolio creation strategy
Local Agri-food Sector Enabler (LASE) Mandate

Current gap in the

funding market

Strategic High Food Security investments in Strategic High Food Security investments in mature
disruptive innovations innovations
Investment
Very early-stage deals to be avoided •
model Provi de a ccess to open innovation • Meet SALIC’s Sustainable Food Security objectives
• Investment through SALIC AgTech Fund • Hi ghly disruptive, s calable and mature i nnovations
• Meet SALIC’s l ong term Food Security objectives • Commerci alized technologies
• Ta ngible commitment by the Company on Saudization plan/roadmap

Company
lifecycle Startup Technology validation Growth/Commercial Stage Commercialized and
Transformative for KSA
Investment
Stages Seed stage VC Early Stage VC Late-stage VC Scale Up and Commercialization

Ri s k dimensions: • 180 day risk mitigation plan to be identified

• Executi on Risks Risks
• Technology • Board seat sought
Ri s ks
• Product AgTech Fund SALIC Corporate
Devel opment /
• Regulatory
Ri s ks Priority
• Funding Risks
• Ma rket Risk

Source: Team input 38

Thank you

Saudi Agricultural and Livestock Investment Company

39