TFS Corporation Ltd 2013 Annual General Meeting Presentation

Frank Wilson – CEO

15 November 2013

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Important Notice and Disclaimer

This presentation has been prepared by TFS Corporation Ltd (TFS).

This presentation is not a financial product or investment advice or recommendation, offer or invitation by any person or to any person to sell or purchase securities in TFS in any jurisdiction. This presentation contains general information only and does not take into account the investment objectives, financial situation and particular needs of individual investors. Investors should make their own independent assessment of the information in this presentation and obtain their own independent advice from a qualified financial adviser having regard to their objectives, financial situation and needs before taking any action.

No representation or warranty, express or implied, is made as to the accuracy, completeness, reliability or adequacy of any statements, estimates, opinions or other information, or the reasonableness of any assumption or other statement, contained in this presentation. Nor is any representation or warranty (express or implied) given as to the accuracy, completeness, likelihood of achievement or reasonableness of any forecasts, prospective statements or returns contained in this presentation. Such forecasts, prospective statements or returns are by their nature subject to significant uncertainties and contingencies, many of which are outside the control of TFS.

To the maximum extent permitted by law, TFS and its related bodies corporate, directors, officers, employees, advisers and agents disclaim all liability and responsibility (including without limitation any liability arising from fault or negligence) for any direct or indirect loss or damage which may arise or be suffered through use or reliance on anything contained in, or omitted from, this presentation.

An investment in TFS securities is subject to investment and other known and unknown risks, some of which are beyond the control of TFS. TFS does not guarantee any particular rate of return or the performance of TFS securities.

The distribution of this presentation including in jurisdictions outside Australia, may be restricted by law. Any person who receives this presentation must seek advice on and observe any such restrictions.

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Achievements & Milestones

Governance / Management

• Appointment of Patrick O’Connor independent non-executive Chairman.

• Appointment of Alistair Stevens as Chief Financial Officer.

Financial Performance

• Cash NPAT and Cash EBITDA up over 100% on FY12.

• Significant increase in TFS plantation ownership to over 2,400 hectares.

• Dividend reinstated. For

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FY13 Key Results

FY13 ($m) FY12 ($m) %

Total revenue 187.7 126.8 48.0

Net profit after tax 55.7 25.9 115.1

EBITDA 101.0 55.0 83.6

Earnings per share 19.9 9.3 114.3 Cash operating revenue 121.7 88.4 37.7

Cash net profit after tax 21.3 6.6 222.7

Cash EBITDA 51.8 23.8 117.6

Cash earnings per share 7.6 2.4 222.0

Plantation value (tree assets) 191.5 85.7 123.4 For

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Challenges and Opportunities

• First commercial harvest commenced September 2013 with encouraging results – confirmation of oil quality and oil content in heartwood.

• Evident that lower heartwood yield in earlier plantations due to poorer quality trees.

• Improved plantation inventory assessment now enables better estimation of future heartwood yield at different ages.

• Beyond EKS/TFS 2 evaluate extending harvest rotation for some plantations to obtain higher heartwood yield.

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Financial Review – article dated 30 August 2013

"These guys own 2440 hectares of Indian sandalwood plantations. If the prices remain constant, they're going to generate nearly $2 billion of operating profit over the next 15 years. It's the most interesting deep value story that I'm aware of," Mr Michell said.

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Integrated Business Model

Control of supply and quality through ‘soil to oil’ approach

2. Cultivation of Sandalwood seedlings and plantation establishment

3. Plantation management

1. Sourcing of plantation land

4. Processing

5. Marketing and distribution

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Strength of Business Model

• World’s largest vertically integrated manager and owner of sustainable Indian Sandalwood plantations.

• Dominant position in an undersupplied, high-growth industry.

• High barriers to entry.

• Intellectual property developed over 15 years in the growing and processing of sandalwood.

• Limited sustainable competition.

• Diverse range of high value, high volume uses and markets.

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Plantation Inventory Assessment

• Heartwood yield/volume is a function of:

- Survival rate - Tree size and quality

• Pioneer Plantations (1999 – 2000) – total area 144 ha:

- Poor quality and size - Poor survival rate (average of approx 35%)

• Early Plantations (2001 – 2008) – total area 1,600 ha:

- Much improved quality and size - Much improved survival rate (average of approx 70%)

• Later Plantations (2009 – 2013) – total area of 5,800 ha:

- Further improvement in quality, size and consistency - High survival rates (average of approx 95%)

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First Commercial Harvest

• Successful initial harvest of 8 ha EKS plantation (5 ha TFS owned and 3 ha grower owned) completed in September 2013.

• Balance of EKS plantation and TFS 2 plantation to be harvested April/May 2014.

• Initial tests show oil quality and quantity (as % of heartwood) within expectations despite poor overall standard of the EKS/TFS 2 plantation.

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First Commercial Harvest

• The Primary Processing Centre (“PPC”) is now operational, functioning as a grading, sorting and preparation facility.

• The PPC produces cleaned logs ready for wood export or oil distillation at the Mt Romance facility.

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Outlook

• First commercial harvest – proof of concept:

- yield - price • Revenue from harvests expected to begin to

make a positive impact on earnings from FY15.

• End-market opportunities continue to develop with pricing tension between oil and wood markets increasing.

• Continuation of strategy to increase direct plantation ownership. F

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