Investor Presentaiton

JICA Rice Farming Machinery Rice farming machinery in Côte d'Ivoire: Executive Summary Overview of the rice farming sector Large rice harvesting surface and low yield presents a strong upside potential to increase production through mechanization Côte d'Ivoire ranks #6 in Africa in rice harvesting surface with 698k ha The productivity in yield is low: 50% lower than global average across local crops including rice Value chain and key players Given the small farm sizes, the government designed a "contractor" model to centralize machinery activity. Contractors (called PMEAs) provide farming machinery services to farmers or cooperatives. OEMs use local dealers or distributors to sell equipment to the PMEAS Large international OEMs: Mainly provide tractors (used for various crops), and rice farming machinery Tractors: 8 major players active in the market, collectively selling ~300 tractors/year. They include Kubota, John Deere, Massey Fergusson, New Holland, Mahindra and TAFE Rice farming machinery: Most demanded machines are power tillers and combine harvesters. Japanese players active in the segment compete mostly with Chinese brands (e.g., Chalion) and Indian brands (e.g., Shakti). Experts estimates Japanese to have a longer lifespan than Chinese machinery (10 years vs 1-2 years) but costs twice as much Dealers / distributors: Mix of local companies (e.g., Lassire Industrie, CI Motors) or subsidiaries of international dealers (US - Kanu Equipment, French - Bouchard CI). Dealers often have partnership with regional mechanics and contractors/PMEA Contractors/PMEA: 13 government certified PMEAs (small and medium contractors) provide farming machinery services to rice farmers Challenges in the sector In order to expand the rice farming machinery business, it is critical to address challenges faced by PMEAs, with the support of OEMs, the government and/or development partners Access to finance: Contractors/PMEA have difficulties in accessing loan as financial institutions charge high interests (e.g., over 20%). This makes it difficult for them to purchase high-priced machinery Maintenance: Challenges in accessing spare parts (especially compared to Chinese brands) and lack of skilled mechanics Labour: Untrained operators reduce the life span of equipment (e.g., tractor lasts 10-15 years in Europe vs. 2-3 years in Côte d'Ivoire) Infrastructure: The last mile transport infrastructure around rice farming areas needs to be improved 60 60

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