Timbercorp Presentation 2005

8/7/2019 Timbercorp Presentation 2005

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TIMBERCORPPRESENTATION

Haymes& Haymes

hf1. CorporateSnapshot

2. OurProiecis

- Forestry

- Horliculture

3. Outlookfor2005andbeyond

htP,ofitafte.tax l 51.7% $ 41.1million

Revenue 52.7% $192.9million

Annuity style rev 34.6% $ 88.1 millioo

NetAss€ts i|51. $365.2million

Dividends(full year) A 57.'t7o 5.5 cents persharc

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2oo4 2oo3 tilfSmtllton gmi ion

Cash 114.7 38-6 t 2A.7

TotalAssets 677.5 520.8 a 23.3

NstDobr 60.3 128.6 a 53.1

Gearing% 16.5' 53.0 I 68.9

Interestcover(times) 5.1 4.3 t 18.6

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Sodh westWestem Australia

htTo developmechanismsthai maximisehe netstumpagereturnto our growersby:

. Gowingmorewoodperwoodlot

. Processingthewooddirectlyon behalfof lhegrowers,and

. Shiftingthepoint-ot-saleas closeto the customeraspossible

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Excellencein sustainableforestmanagemen,hf

. By FoodandAgriculturoOrganizationoftheUnitedNations

ForestryStewardshipCouncil

. TimbercororeceivedcertificationfromtheFSCin Octobor2004



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hfHarvestcompletefor 1992Project

Harvestcommencedon '1993,'1994and'1995Projects

Allgrowershavehadprofitablereturns

Metalllandrequi.ementsfor2004Project

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hfr' Bringingpatientcapitaltoworldscalehorticultural

projects

r' Capitalisingonproductionefficienciesthroughtechnologyandscale

/ Engagingbestof breedalliancepartnerswithmanagementandproductmarkeiingexpertise

r' Usingnewexclusivevarietiesandcounterseasonaladvantage

+r' Sreamliningthesupplychain "1-





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LaAlso in Riverland,thereforefurtheropportunilyl6iFrationalisingpackingand marketing

309 hectaresofestablishedorchards(Solora)plus200 hectaresorchardto be developedin September2005

Establishedorchardhas 35%'easy-peele/citrus

"Solora"brandwell-recognisedin the market

Same managementteam as 2004 Projectthereforeturtherefficienciesin overheads

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hfDarwino

Crossbetween'sensation'(Florida)and fuf'KensingtonPride'(KP)

lvloreappealingmango

. redblush

. firmflesh

. greattaste

. highfleshto stoneratio

Excellentshelf life comparedto KP and others

Higherand more consistentyieldingcultivar+

Higherpercentageof Grade'l

fruit l-

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strongdomesticandexportdemandH

600/0of populationdoesnotcurrentlyeatmangoes

Realopportunityto supplyconsistentqualityoverfull20weekseason

Exclusiveaccesstothe'Calypso"proprietaryvariety

Intrcduceeconomiesof scale(currentlyindustryhashighlyfragmentedgrowerbase)



Estabrishedin 197s hf

Tumoverin excessof$'100million;500statf

Largestsupplierofpackagedfresh-cutsaladsinAustralia

LargestsupplierofseedlesswatermelonsinAustralia

lnnovativemarketer

- BothongaSweetpineapple

- ShepardAvocado +

ht3 orchards(Katherine,Mataranka,Dimbulah)

Total350hectares:80,000trees

Exclusively'Calypso"variety

Orchardsmanagedby OneHarvest

OneHarvesthasexclusivemarketing.ightsandsupplyagreementswithWoolworthsandColes



hfAustralianproduction- 80,000tonnes,45%exported

ExportgroMh1s%p.a.overpastdecade

5-6majorgrowersproduce70%of totalproduction

Asialargestmarket,counter-seasonalopportunitiesNorthAmericaandEurope

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Famityco, grapegrowersince1902 hf

Basedin EustonNSW(nearRobinvale)

Ausualia'sthird largestgrapegrower

Exports90% of production

Marketsdirectlyand throughJohn Holman& co -

marketerwith 25 years'experience

In 2004 Costa'sDurchaseda 50% sharein BestFreshPty Ltd, an established,l\4ildurabased,marketingand distributioncompanyspecialisingin Itablegrapes.

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4oo acres own productionY

Sourcesfruitf.om othergrowers(approx1,000

acres)

State-of-the-adcoolstorefacilities

Marketsup to 1 millioncartonsper annum

Crop insuredagainstfrost and hail

Usegrapecoversto protectagainstrain andsunDurnoamage

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GrapeHouseguaranteesto sell everycarton htPremiumvarieties,exclusiveto Timbercorp(forthatproductionperiod(Febto May)

Commandspremiumpricingdue to size,seedless,

taste,countercyclicaladvantages

Firstrightsto all new varieties(frombiggestgene pool-

Andriske)

Economiesof scale in oroduction

Latestirrigationand trellistechnology

World classrapid coolingand transportation +techniquesto enhanceshelf life



"Red Rob"

' Bigberrysize,sweetandseedless

. TargetAsianmarketfor larg€fruitwithstrongreocorotit

. Retailerskeento promoteas seepointof

"Stanloy S€edle33".Whire/green,seedless,sweet,crunchy,large

. No realcompetito.as latecrop

. Dofiesticandglobalsupermarketsalreadyqueuingup

hfVolume& reliablesupplyofpremiurnvarietiesoverextendedperiods=widespreadappealopeningmanynewmarkets

Exporttiming- Feb-June(primemarketingwindow)

Retailerskeento paomoteasseepolntofdifferencetromstandardvarieties

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Ro Robpunettpack(trial).-.



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T SwanHilla

- - O g"nainoBOOnESEte a

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Melbournea

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HThe AustralianOlive Industryis now gainingattentionand presence

Establishingreputationfor qualityoliveoil

Our expectedyieldis insignificantto worldvolume.....nowever

Our yieldwjll have significancebecauseof timingof production

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r, . . \-k#Establ ished2,777ha- approx.950,000trees

Ful lyirr igat ion- qualityan dconsistentsupplyof

Integratedon-siteoperationwithmanagement,harvesting,processing,storage.

Varietalfocusto allow blendin9....thesecretProducingpremiumEVOO

EstateDrivenStrategy+

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bsRecentlyappointedBoundaryBendEstatetomanagethe olivegroveand the p.ocessingfacility

BBEexperienceand expertise

Have3 Colossusharvestingmachines

Havetakendel iveryof a th irdprocessrngl inefrom ltaly

Buildingan on-sitetankfarm facility

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npgQualityof oil producedhas beenexceptional

Gold and Bronzemedalsat AOA awards

BoundaryBendEstateappointedrnanager

Frostetfected2004 cropyielddownonexpectation

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HFIS

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ColossusHarvesler..- !|5t

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htTankfarmbeingbuilt...

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Almondsare the Iargest,in termsot vorume,Fhfthe ediblenut range,with worldconsumptionover550,000tonnes.

Almondsare the mostversatilenut. Usesincludebaking,confectionery,breakfastcereals,healthbars, snacks,ice-cream,cooking,pastesand nutritionalsnacks.

USA producegreaterthan 80% of worldsupply,Spain 5%, Turkey3% ...Australia2%

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TrWorld alftond supply l! not k.eping up rvithcoEumptaongrowth

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OutserformsUSAinte-" orr,",O,uno""

lfaesultwearea costcompetitivogrower

Ourqualityintermsof size,colorandappearance(absenceof insectdamage)isgenerallysuperiortoUSA

CounteFseasonalin termsof haavest,MarchinAustraliavs.Septemberin USA

Ou.freightcostto majormarketsis comparaotewithUSA

Closeproximitytogrowingmarketsin Asia +

3at3oo25020ot50too

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hfWe have idealconditionsfor growingalmondsand availableland to increaseproduction

We are world competitivein termsof yield,costsand quality

As a smallproducerwe havean opportunjtytosubstantiallyincreaseproductionwithoutmeaningtullyimpactingon worldsupply

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P.e-eminentpositionin tf," "tronAinau.ty$Contractualrelationship- engagedto provideestablishment,management,processing&marketingservices

Guaranteeto sellou,almonds

Timbercorpequitystakein SHV

Longtermrelationshipviasuategicalliance

hfHarvestingof the2005crophascommenced

Yieldappearsto beaboveanticipation

50%ot the c.op has beenforwardsoldinexcessofgS/kg

Aboveanticipatedretumsin 2004(afantasticresultconsideringfrostdamage)

Worldalmondpriceis at an alltimehighevenwithrecordAmericancropin 2004

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LiparooJune200'1...

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LiDarooSeDtember2003... x

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Liparoocropreadytoharvest..

/ 2o0b- a stroogsatesenvironment- hfincreasein newprojeclsalesin2005

r' Beyond2005- expectfurtherincreasesfromalmonds,citrus,olives,tabl€grapes,mangoesandothernew

projects

/ Expansionofagdbusinessassetmanag€ment

revenue-

Timber@rcOrchardTrust/Expandingopportunitiesin olhercomplementary

areasof specialistinvestmenlmanagement,bothwithinand outsidethe agribusin€sssector

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Documents

Timbercorp Presentation 2005