1. [Business Communication] [Company Name] Team 1 Mission Produce Devon Coombs - Josiah Deveau - Kristine Diwa

2. Overview What should Mission do? ●How to expand Mission ○ Create consumer packaged goods? ○ Market in Europe, China, and other fast-growing markets? ○ Vertical integration - control supply? ○ More avocado distribution and ripening centers? ●Right financing mix to fund expansion (debt and equity) 2 - Devon Coombs

3. Strategy Diversification Analysis 3 - Devon Coombs More avocado distribution and ripening centers in the U.S. and Canada More avocado distribution and ripening centers in new markets Same MarketNew Market Same Product New Product Processed foods in U.S. markets New vertical acquisitions for avocado growth in current markets Processed foods in new markets New vertical acquisitions for avocado growth in new markets

4. Strategy Growth-Share Matrix for Mission Market Growth (+) Relative Market Share (+) Dogs Cash Cows Question Marks Stars Ripening Centers Avocado Distribution Avocado Supply Processed Foods Alternative Produce 4 - Devon Coombs

5. Strategy SWOT Analysis 5 - Devon Coombs StrengthsWeaknesses Dominant market share with ripening center Developed distribution channels Global experience Social responsibility Foods other than avocados Not in control of avocado supply Low demand in Europe OpportunitiesThreats Acquire supply Avocado demand is increasing quicker than supply New markets for distribution (China, Europe, Mexico) Processed food Foreign government (nationalization, trade impacts, and regulation) Market fluctuations Processed food competition High capital cost

6. Strategy Strategic Map - Current 6 - Devon Coombs Ripening Centers Avocado Distribution Global Relationships

7. Strategy Strategic Map - Potential Ripening Centers Avocado Distribution Global Relationships New Distribution Markets New Global Ripening Centers Diversified Supply Control Constant Supply of Ripe Avocados 7- Devon Coombs

8. Supply and Demand US Supply and Demand: 1980-2012  8 - Devon Coombs

9. Supply and Demand Demand Exceeding Supply ● Not enough supply to meet demand ● Avocado demand is growing quicker than supply ● Mission should capitalize on this discrepancy ● Aggressively pursue growing supply 9 - Devon Coombs

10. Supply Diversification Expanding to Different Countries ● Different ripening seasons ● More global locations ○ Exports ○ Local sales ● Diversifying risk ○ Nationalization ○ Joint-venture problems ○ Natural conditions (rainfall, natural disasters) 10 - Devon Coombs

11. Hass Avocado Seasonality Chart 11 - Devon Coombs

12. Supply and Demand Choosing Locations - Pros ● Peru ○ Developed infrastructure and relationships ○ Better than average avocado growth ● California ○ Closer to China and Japan ○ Infrastructure developed ● Mexico ○ Cheaper labor ○ Complimenting growth seasons ● South Africa ○ Cheaper labor ○ Closer to European markets 12 - Devon Coombs

13. Supply and Demand Choosing Locations - Cons ● Peru ○ Foreign government risk ○ Diminishing returns ● California ○ Poor agricultural conditions (drought) ○ Expensive labor, land, and tax ● Mexico ○ Foreign government risk ○ Lack of control and infrastructure ● South Africa ○ Foreign government risk ○ Lack of control and infrastructure 13 - Devon Coombs

14. Recommendation Vertical Integration ● Mexico (2015) ○ Diversified growing periods - constant supply ○ Close to U.S. infrastructure ○ Benefits from U.S. ripening centers ● South Africa (2016) ○ Supports foreign markets ○ Diversify foreign government risk ○ More global presence 14 - Devon Coombs

15. Vertical Integration Why not more countries? ● Oversaturation of the market ○ Too much supply could lead to a decrease in product price ○ Wait and see how the current supply develops ○ Diminishing returns ● Limited capital ○ More options ○ Diversify investments to minimize risk 15 - Devon Coombs

16. Mission Developing the World ● Developing countries ● Desert to farmland ● Global employment ● Greater food supply ● Changing the world 16 - Devon Coombs

17. Mission Developing Peru Before 17 - Devon Coombs

18. Mission Developing Peru After 18 - Devon Coombs

19. Financing Projects Current Financial Position ●High Return on Equity = 18.83% ●Low Long Term Debt to Equity =.32 ●High Asset Turnover = 3.29 ●NPV of Mission = $514,155,470 ●Strong position to gain capital 19 - Josiah Deveau

20. Financing Options Loans ● Loan ○ Pros ■ Room to take on debt ■ Allow to keep control of company ○ Cons ■ Relying solely on debt can lead to future issues 20 - Josiah Deveau

21. Financing Options Outside Investors ● Look for outside investors ○ Pros ■ Will not have to repay investment ○ Cons ■ Dilute control of company 21 - Josiah Deveau

22. Financing Options Going Public ●Pros ○ Stocks ■ Will not have to repay investment ○ Bonds ■ Raise money without sacrificing control ■ Better than loan, or issuing stock ●Cons ○ High investment to go public ○ Stocks ■ Loss of company control 22 - Josiah Deveau

23. Financing Options Joint Venture ● Partner with outside companies ○ Pros ■ Lower cost of starting farms ■ Help grow foreign companies ○ Cons ■ Loss of direct control and profits 23 - Josiah Deveau

24. Financing Options Recommendation 2015: ●Find investors to raise $10 million in capital ●Raise $20 million in capital through debt ●Use capital to fund development: ○ Mexico Avocado Farms 1,500 hectares - $20 million ○ Ripening/Distribution Centers - $10 million 2016: ●Raise $10 million in capital and $20 million in debt ●Regain cost of Peru farm ●Begin development of S. Africa farm - $20 million 24- Josiah Deveau

25. Current Investment Arrato/Beggie Peru Farms ●Top Investment ●Return on Investment = 966% ●Compound Annual Growth Rate = 22.48% ●NPV = $73,863,733 25 - Josiah Deveau

26. Projection for Peru Farms 26 - Josiah Deveau

27. Investment Projections 27 - Josiah Deveau

28. Mission’s Options Foreign Markets and Consumer Packaged Goods ● Market fresh avocados to Europe, China, and other fast- growing markets? ● Move up the supply chain and get into consumer packaged goods like Calavo? ● Do both or focus on one? 28 - Kristine Diwa

29. Choice Expand and enter fast-growing markets Enter the consumer packaged goods DO DO NOT 29 - Kristine Diwa

30. Do: Expand and Enter Market Current Market ● U.S.A ● Canada ● Japan New Market ● China ● Europe ● Mexico 30 - Kristine Diwa

31. Opportunities ● Huge populations ● Growing demand ● Health-conscious consumers 31 - Kristine Diwa

32. Consumer Packaged Goods Pros and Cons ● Pros ○ Higher margins ○ Leverage distribution ○ Recognizable brand ● Cons ○ Previous failures outside of avocados ○ Competitive industry ○ Opportunity cost 32 - Kristine Diwa

33. Consumer Packaged Goods Recommendation ● Difficult current market ○ Too much competition ○ No reputation in processed foods ○ More lucrative opportunities elsewhere ● Potential market viability (after 2017) o After supply is secured ○ Reputation and distribution channels increased ○ Larger capital to push into a new industry 33 - Kristine Diwa

34. New Ripening Centers ● China ● Japan ● Europe ● Canada ● Mexico 34 - Kristine Diwa

35. Marketing Expansion Strategies Joint Venture Form Relationships Be a Success 1 2 3 35 - Kristine Diwa

36. Concluding Recommendation ● Look for outside investors who share same vision ●Seek to establish joint ventures with foreign farms o Improve value of foreign farms o South Africa and Mexico o Rotational growing periods ●Finance remainder through long-term loans ●Enter foreign markets ○ Europe ○ China ●Maintain a socially responsible and ethical environment ○ The “Why?” to Mission 36 - Kristine Diwa

37. The “WHY” to Mission 37 - Kristine Diwa Passion Health Development MISSION

38. Appendix A - Ratios and Financial Analysis ● Current ratio: 1.19 ●Quick ratio: 1.1 ●Net working capital: $10,644,717 ●Working capital ratio:.07 ●ROA:.10 ●ROE:.19 ●Profit Margin:.03 ●Asset Turnover Ratio: 3.29 ●A/R Turnover Ratio: 12.92 ●Inventory Turnover: 32.10 ●Long Term Debt to Equity:.32 ●Interest Coverage Ratio: 13.22 ●Return on Investment: 966% ●CAGR: 22.48% 38

39. Appendix B - Asset Analysis 39

40. Appendix C - Liability Analysis 40

41. Appendix D - Equity Analysis 41

42. Appendix E - Income Statement Analysis 42

43. Appendix F - Ripening Center Locations 43

44. Appendix G - Company Valuation 44 Step 1: NPV of Current Mission Cash Flows OFC = $28,262,417 WACC (Working Average Cost of Capital) = 8.36% Growth Rate = 2.2% (Current GDP growth rate) NPV Based on Constant Growth $ 458,954,481.97

45. Appendix H - Company Valuation 45 Step 2: NPV of Investment (Peru) Cash Flows WACC = 8.36% NPV = $55,200,988 Step 3: Mission NPV = $514,155,470 YearCash Flow 2012-$25,000,000 2013$0 2014$323,046.24 2015$1,615,231.20 2016$3,440,442.46 2017$5,007,216.72 2018$6,945,494.16 2019$6,299,401.68 2020+$119,733,642.26

46. Appendix I - Revenue Analysis Peru 46 Metric TonnesRevenue $30/lugGM $9.30/lug 2012-- 2013-- 2014 2000$5,280,000$1,635,920 2015 10000$26,400,000$8,179,600 2016 21300$56,232,000$17,422,548 2017 31000$81,840,000$25,356,760 2018 43000$113,520,000$35,172,280 2019 39000$102,960,000$31,900,440 2020 43000$113,520,000$35,172,280

47. Appendix J - Revenue Analysis MEX/RSA 47 Metric TonnesRevenue $30/lugGM $9.30/lug Full Production 15000$39,600,000$12,276,000 ●1,500 hectare Farm ●10 tonnes per acre at full production