LIC: Building a world scale agri- tech company by 2025

LIC: Our History 1910 Small regional milk testing Co-ops 1930’s Milk testing throughout New Zealand 1940’s Artificial insemination of dairy cows begins 1950’s Further consolidation of regional Co-ops 1970’s Widespread use of AI in cows 1980’s Wider range of products and services from LIC 1996Farmer meetings support return of ownership from NZDB to Users 2002LIC returned to Users as a Co-operative under DIRA 2004LIC issues Investment Shares and lists on the NZAX – first Co-operative in NZ to list on a Stock Exchange

LIC at a Glance Farm Information Dairy animal recording (MINDA) Herd testing (milk) – dairy & goats - Milk analysis centres (NI & SI) Goats, beef and deer recording and traceability Industry statistics Farm Systems Automation products - Protrack Heat detection devices – EZ Heat On-farm consultancy – FarmWise

LIC at a Glance Dairy genetics bulls screened (including genomics) - Liquid and frozen semen technology - Extensive nation-wide field service International business - UK, Ireland, China, Latam, Australia, South Africa Deer genetics (venison) Diagnostics DNA analysis Animal health testing and management

Operational Overview Inseminations - NZ5,000,000 Inseminations – International800,000 Data transactions 100,000,000 Active Animal records 6,000,000 Electronic software customers10,500 Milk sample analysed 11,700,000 DNA tests260,000 Automation systems1700 AI technicians950 Field sales team130

LIC Strategy

Delivering on our Strategy Currently $232 million revenue, 10% growth last year. Where will growth come from? Domestic BAU growth New product launches Domestic acquisitions International growth International acquisitions

Delivering on our Strategy With 105 developers one of NZ’s largest IT development shops R&D and product development $26 million in 2014/15 Over 11% of revenue – very high by NZ primary sector standards Growing patent portfolio

Building a world scale company Medium sized genetics company, but only 12% of genetics revenue from exports Market leading software and hardware in NZ Very little export of software and hardware

Strategy for international growth Partnership/JV OEM Software as a service Direct sale (where we have a market presence) Acquisition

Acquisitions to date Dairy Automation Limited (now part of LIC Automation) Investment in Figured on Farm Lely Sensortec CRV Australia DD underway on another acquisition JV in negotiation More to follow…..

Strategic Partnerships LIC is moving from an approach of doing everything our way to a partnership model SCR Lely CRV (in other markets) GEA Potentially DeLaval and Alta