Adrie ZwanenbergInvestor Relations
June 23th, 2009
AgInvesting 2009
New York
WATER
Thirsty for investments
Disclaimer
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Water is an issue in the heart of Africa….
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…in the heart of London…
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…and in the USA
•Excluding capital projects related to dams, raw water reservoirs, future growth and fire protection
Source: EPA, February 2009
Total water loss nationwide is estimated 23 billion liters per day= combined water consumption of the 10 biggest cities
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Water is certainly an issue for agriculture
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Nature has a perfect water cycle…
Source: World Business Council for Sustainable Development
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…but only 0.5% of world’s water is available as fresh water…
Source: World Business Council for Sustainable Development
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Source: World Business Council for Sustainable Development
…and that available water amount is badly distributed over the globe…
Annual renewable water (m³/person/year)
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Source: SAM
…and within countries, like in China
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Source: World Business Council for Sustainable Development
The users of water areagriculture, industry and households…
…and all of them want MORE !
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drinking hygiene
sanitation
irrigationenergy cooling food & drinks
manufacturing
Demand for water is growingfor all sorts of uses…
Source: SAM
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poor infrastructure salinization
leaks inpipelines
environmentalpollution
…while supply is under pressure
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Irrigation is part of Rabobank’sFood & Agribusiness lending
Total lending Rabobank €409bn of which F&A €68bn
Group lending by customer category total €409 bn
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Rabobank finances all links of the F&A chain with a focus on agriculture
Group F&A lending by link in the chain total €68bn
7%
63%
16%
7% 7%
DomesticInternational
Farm inputs
Agriculture &
horticultureProcessing Trade
Retail & food-
service
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€bn
F&A portfolio well spread over sectors
Group lending by F&A sector total €68bn (Dec ‘08)• F&A portfolio well diversified
• F&A is 17% of Group portfolio
• F&A portfolio evenly spread domestic vs. international
• Portfolio growth in 2008: +15%
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Global trade flows of grains & oilseeds…
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…and global trade flows of dairy products…
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…are examples of global flows of water
Importers and exporters of virtual water due to agricultural trade flows
Source: IWMI
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Agriculture: increasing demand for water…
Demand for water increases due to strong increase offood, feed, fuel and fibre
Water is an issue for agriculture:
• lower yields if water is scarce
• higher price for water intake
• need to invest in securing water, eg water rights
• regulatory constraints
• reputation constraints
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The price of water is increasing
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Average price of waterin USD/m³
+4%
+48%
+14%
-1%
+86%
+35%
+11%
+55%
+70%
+30%
Source: NUS Consulting Group
…requires investments in new technologies
Technologies to increase water use efficiency:
• system modernization
• monitoring crop water demand
• metering water use
• Sprinkler & drip irrigation
• waste water reuse
• desalination
• drought-tolerant crops
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Investment opportunities can be found in all parts of the water cycle…
Source: SAMInvestor Relations
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Business in water Examples of companies active in the USA
Water utilities
Water distribution
Water treatment
Irrigation equipment
Monitoring
Water investment funds
Biotechnology
…and in many companies
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Conclusions
Water is thirsty for investments indeed
Investment opportunities will be enhanced furtherthrough:
• Increasing water scarcity
• Higher price for water
• Governmental stimulation packages to mitigate the impact of the economic crisis
Many opportunities of investing in water, directly orindirectly
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More information on Rabobank
RabobankInvestor RelationsP.O. Box 17100, UCR 3153500 HG UtrechtThe Netherlands
Tel.: +31 30 216 5777Fax: +31 30 291 7105E-mail: [email protected]: www.rabobank.com/IRBloomberg: RABO NA
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