1. LEARN Better Cotton Performance Review 2013-14 Season August 29 th, 2014 LEAD DRIVE THE CHANGE

2. Main Activities During 2013-14 Season LEARN LEAD DRIVE THE CHANGE AMSTERDAM 2014 »Expansion into new and existing countries »New membership requirements & traceability system »Implementation of the mass-balance system »Upcoming changes

3. Act Locally and Think Globally! LEARN LEAD DRIVE THE CHANGE AMSTERDAM 2014 »Expansion = Global Business Opportunities »Better Cotton is now a GLOBAL commodity »Infrastructure & international demand creation

4. Better Cotton is in 19 Countries now! LEARN LEAD DRIVE THE CHANGE AMSTERDAM 2014

5. 2014-15 : 1,800,000 MT Lint Better Cotton LEARN LEAD DRIVE THE CHANGE AMSTERDAM 2014 + 90%

6. INDIA LEARN LEAD DRIVE THE CHANGE AMSTERDAM 2014 Better Cotton:20132014 Farmers146,00 0 251,00 0 Hectares236,00 0 461,50 0 MT Lint160,00 0 315,00 0 Gujarat Maharashtra Punjab Andhra Pradesh Karnataka Tamil Nadu Madhya Pradesh Orissa Rajasthan Strengthen domestic business Exports bales and yarns to China Bangladesh Why not to Turkey? Who else exports to China, Bangladesh and Turkey?

7. CHINA LEARN LEAD DRIVE THE CHANGE AMSTERDAM 2014 Better Cotton:20132014 Farmers6,00015,000 Hectares27,00065,000 MT Lint53,000150,00 0 Note: 2014 figures are projections

8. BRAZIL LEARN LEAD DRIVE THE CHANGE AMSTERDAM 2014 Better Cotton:20132014 Farmers150173 Hectares215,000295,000 MT Lint361,0001,000,0 00 Note: 2014 figures are projections Should the Chinese spinners import from India or Brazil?

9. MALI LEARN LEAD DRIVE THE CHANGE AMSTERDAM 2014 Note: 2014 figures are projections Better Cotton:20132014 Farmers33,00047,100 Hectares86,000154,70 0 MT Lint35,00063,400

10. USA LEARN LEAD DRIVE THE CHANGE AMSTERDAM 2014 Note: 2014 figures are projections. Better Cotton:2014 Farmers41 Hectares10,550 MT Lint10,520

11. AUSTRALIA LEARN LEAD DRIVE THE CHANGE AMSTERDAM 2014 Note: 2014 figures are projections. *Estimated using average Australian yield/Ha. Better Cotton:2014 Farmers21 Hectares27,400 MT Lint59,300*

12. TURKEY LEARN LEAD DRIVE THE CHANGE AMSTERDAM 2014 Note: 2014 figures are projections Better Cotton:20132014 Farmers300600 Hectares7,50014,450 MT Lint15,00027,400

13. LEARN Membership & Better Cotton Uptake August 29 th, 2014 LEAD DRIVE THE CHANGE

14. LEARN LEAD DRIVE THE CHANGE AMSTERDAM 2014 # of accounts in the traceability system »Ginner Accounts237 (Down from 300) »Trader Accounts48(34 Traders + 9 Pending) »Spinner Accounts242(35 Pending) »Retailer Accounts42 (29 Retailers + 4 Pending)

15. LEARN LEAD DRIVE THE CHANGE AMSTERDAM 2014 Supply & Demand SUPPLY DEMAND

16. LEARN LEAD DRIVE THE CHANGE AMSTERDAM 2014 Ginner Uptake Rate – Global Average Comparison with Previous Cotton Seasons (SEED COTTON) Seasons 2010-112011-122012-132013-14 Registered Gins 28141198300 Better Cotton Licenced Seed, in MT99,000573,8001,889,0002,149,904 Lint, in MT34,590209,066728,259812,509 Better Cotton Bought by GinsSeed, in MT16,182241,920810,112948,891 Better Cotton Produced by GinsLint, in MT6,09988,354315,658378,063 Gin Uptake Ratio 16%42%43%47%

17. LEARN LEAD DRIVE THE CHANGE AMSTERDAM 2014 Trader & Spinner Uptake »Trader Uptake:104,000 MT »Spinner Uptake:181,000 MT »Figures as of August 16 th, 2014

18. LEARN LEAD DRIVE THE CHANGE AMSTERDAM 2014 Ginner Uptake Rate - India India - Country Ginner Uptake Information 2010-112011-122012-132013-14 Registered Gins 65676 75 Better Cotton Licenced Seed, in MT 31,000 116,000 318,000 532,284 Lint, in MT 10,230 38,280 104,940 162,907 Better Cotton Bought by GinsSeed, in MT 4,915 69,869 140,117 237,484 Better Cotton Produced by GinsLint, in MT 1,622 23,057 46,239 86,310 Gin Uptake Rate*%16%60%44%45%

19. LEARN LEAD DRIVE THE CHANGE AMSTERDAM 2014 Spinner Uptake By Country CountryCompleted and Acknowledged transactionsAwaiting Acknowledgement transactions Bahrain49,930445,079 Bangladesh22,762,2403,550,056 China30,156,6481,358,217 India39,048,4092,762,522 Indonesia1,304,9120 Italy2,400,00049,874 Mauritius392,577163,207 Pakistan54,492,5530 Singapore10,412,2870 Turkey20,629,6305,901,338 Total181,649,18614,230,293

20. LEARN LEAD DRIVE THE CHANGE AMSTERDAM 2014 System Stats Status of the transactionNumber of transactionsVolumes traded in Kg Acknowledged28659,434,140 Awaiting acknowledgement5211,922,216 Cancelled by BCI22515,751,769 Completed6,668177,949,194 Entered124,562,000 Refused569,560,770 Request for cancellation7146,761 Request for change196,403 Withdrawn132,713,778 Total7,309302,137,031 225 Cancelled97% Success Rate Using the System

21. LEARN Mass-Balance & Traceability System Changes Wednesday, 25 June 2014 LEAD DRIVE THE CHANGE

22. LEARN LEAD DRIVE THE CHANGE AMSTERDAM 2014 Mass-Balance System

23. LEARN LEAD DRIVE THE CHANGE AMSTERDAM 2014 Mass-Balance System

24. LEARN LEAD DRIVE THE CHANGE AMSTERDAM 2014 Mass-Balance System

25. LEARN LEAD DRIVE THE CHANGE AMSTERDAM 2014 BCCU Transfers No Problem Ginners Traders Spinners Fabric Mills Garment Man. Retailer ODF BCCUs Has been problematic

26. LEARN LEAD DRIVE THE CHANGE AMSTERDAM 2014 Better Cotton Tracer – Development »Inclusion of fabric mills in the Better Cotton Tracer »473 Fabric Mills Received ODFs from BCI Spinners »Most of them are unaware of Mass-Balancing rules »Most of them are unaware of traceability requirements »They have no access to the system »They have limited tools for keeping account of BCCUs »Bulk yarn purchases – Receive 1 ODF »Multiple shipments to multiple retailers

27. LEARN LEAD DRIVE THE CHANGE AMSTERDAM 2014 Better Cotton Tracer – Development »If given access to Better Cotton Tracer, fabric mills could: »Receive BCCUs from spinners automatically »Enter sales declarations directly to retailers »Receive training from BCI – close the knowledge gap »Retailers could stop having to chase suppliers for paper work

28. LEARN LEAD DRIVE THE CHANGE AMSTERDAM 2014 Fabric Mill Design Ginners Traders Spinners Fabric Mills Garment Man. Retailer Sales Declaration: (Required Information) Total Net Weight of Fabric:90 KG (Hidden Calculator) Type of Yarn Used:Combed Fabric-to-yarn salvage %:10% BC % in Fabric:100% BCCU Allocated:120 BCCUs (100*1.1*1.2) Buyer:ABC Garment Manufacturer + (Optional Details) Fabric Style: Season: Origin of cotton used: Purchasing Yarns with BCCUs: 100 KG of 100% combed BCI yarn comes with 120 BCCUs

29. LEARN LEAD DRIVE THE CHANGE AMSTERDAM 2014 Better Cotton Tracer – Development »Fabric mill account design completion - November 2014 »Fee for fabric mills »Introductory fee during 2014 »System User vs. Member »Comprehensive training programme for 500 fabric mills globally

30. LEARN LEAD DRIVE THE CHANGE AMSTERDAM 2014 THANK YOU VERY MUCH!