Company Presentation
12 November 2011
CONFIDENTIAL
SUMMARY
Green Resources’ highlights
▲ 22,000 ha of standing forest on 530,000 ha land. 7,000 ha was planted in 2010/11. It
has been the largest African forestation company during the last decade, establishing a
strong platform for further growth
▲ The world’s lowest cost producer of fibre
▲ East Africa has the potential to be the ‘next Uruguay’, establishing a new forest industry
with significant land value appreciation in addition to strong cash flows from the forest
▲ World leader in forestry based carbon credits
▲ Robust growth both in global end markets (solid wood products, tissue, energy, etc) and
in regional economies
▲ Experienced and entrepreneurial management team and the company has 16 years
experience in East Africa
▲ African leader in FSC certified forest. Unparalleled corporate governance
▲ GR is a profitable investment. At NOK 54 per share (last issued share price), the
financial model shows 25% pa REAL equity IRR over the first three years (until the end
of 2014) and 15% pa real return in perpetuity thereafter, not including any land value
appreciation for a USD 30 million funding plan. USD10-20 million additional investments
has the potential to give higher return
Confidential – read important note on the last page
2
SUMMARY
Key investment highlights

Unique portfolio
of land and platform for
growth

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Global low cost leader

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Establishing
plantations is highly
value generative

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Increase in wood
demand and prices


Value increments
through industrial
operations and carbon
credits


530k ha of available land of which 22k ha planted
East Africa is an optimal location: suited climate, low plantation establishment cost and close
to essential infrastructure and key growth markets in Asia
Strategic position as the largest private owner of forest land in East Africa
Direct planting costs are similar or lower than key plantation countries, while land acquisition
costs are much lower. Established costs are 50-75% lower than main competing countries
Natural growth conditions second only to the best locations in Brazil
Short distance to the world’s fastest growing markets
Establishment cost of USD1,000/ha creates forest plantation worth 3-4x the investment
based on the NAV/BAV, implicitly representing the land value. Further value upside through
increasing biological growth
Significant land value appreciation seen in the leading forest plantation countries
Executed by a large organization of strong local managers and highly qualified technicians
Increasing world wood demand (driven by fiber deficit in Asia and bio-energy growth)
envisaged to pull East Africa into the world trade
Wood prices in East Africa expected to grow strongly and reach world price within 2020
Rapid growth in local economies (among the world’s fastest growing)
Industrial operations (solid wood products, bio-energy) enhance the value of the forest and is
an attractive business in itself supplying a fast growing local market
Current plantation projects expected to generate carbon offsets of 90m tons of CO2e
Confidential – read important note on the last page
3
COMPANY OVERVIEW
Green Resources - Africa’s leading forestation company

Timber
plantations

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Industrial
operations

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Carbon
offsets and
environment

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
Operations in 3 countries employing more than 5,300
Planted more new forest in Africa than any other company
during the last decade and a record 7k ha during 2010/11
22k ha1 planted and a unique holding of 356k ha land on
long-term lease or local agreements
Steadily increasing planting rate with potential to establish
228k ha plantation by 2023 based on existing land
Uganda
32k ha of land under license or MoU
with existing owner
5k ha of land planted
East Africa’s largest sawmill and transmission pole plant in
Tanzania, Sao Hill, a successful Norwegian project
In the process of increasing sawmilling capacity 3x to 70,000
m3/yr by the end of 2011
Started successful Ugandan electricity pole factory in 2010
Bio-energy: charcoal production, developing power plant
Tanzania
140k ha of land under title or
district/village approval
15k ha of land planted
The world leader in forest based carbon offsets
Achieved world’s first voluntary carbon standard (VCS)
forestry project in 2009
Customers include: Carbon Neutral Company, Norwegian
Ministry of Finance, Swedish Energy Agency
FSC leader in Africa (ex RSA) wit 75% plantations certified
Mozambique
131k ha of land under title, 34k ha
under province/village approval
2k ha of land planted
Global wood fiber prices
Attractive business case
LOWEST COST POSITION
USD/m3
60

CAGR = 3.2 %
50


40
30
20
10
In East Africa, Green Resources has the world’s lowest costs for plantation establishment:
~ 1/8 to 1/3 of that in other competing countries (USD 1,000 per ha establishment cost)
15 years experience of development and cost control with strong local management
A cornerstone of the low cost position is the long term leases obtained on public land in
return for: i) local employment in deprived rural areas where the Company often is the only
private employer, employing a total of 5,000 people and ii) significant commitment to
community development, having built 2/3 of the public infrastructure in several villages
ATTRACTIVE DEMAND SUPPLY BALANCE
Source: Wood Resources International
Conifer
Non-conifer

Good demand in traditional markets (e.g.. emerging markets, tissue, charcoal, furniture)

Growth in bio-energy sector

Reduced growth for alternative renewable energy sources due to high costs

Stagnant supply of wood
0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Confidential – read important note on the last page
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COMPANY OVERVIEW
Strong operating performance during 2010 and 2011
2010 Highlights

Record profit for the year

Planted 6,000 ha in the full year

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Full title issued for the 126,000
ha Mozambique project
District approval of 44,000 ha in
Tanzania’s Southern Highlands
Generated USD 1 million in cash
from carbon credits
Significant improvement in
silviculture practices, including
fertilizing and pre-plant spraying
leading to higher growth rates
2011 Jan-Oct Highlights

Produced first 70,000 clones

First fully mechanized planting

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FSC certification in Idete, Tz
Completed senior hiring and
organisational restructuring
Started transmission pole
treatment plant in Uganda
Received grants of USD 5mn,
for project development,
training, renewable energy
Disbursement of loan from IFC
and Norfund
Signed 20 years 300,000 m3/yr
sawlog and 100,000 m3/yr wood
residual agreements in
Tanzanian Government forest
Planted 7,200 ha in the 2010/11
planting season, up 40% YoY,
the main period for planting


2011/12 Targets


Significant improvement in
planting quality
FSC certification in Bukaleba,
and Kachung, Uganda, 100% of
Uganda forest plantations

FSC certification in Niassa,
Mozambique, the first certified
forest plantation in the country

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CDM validation of Kachung
carbon project, Uganda

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Two new agreement for sale of
carbon credits, in Tanzania and
Uganda
VCS carbon validation at one
plantation in Uganda and CDM
validation of one project in
Mozambique
Successful completion of 2H ‘11
turn-around of Sao Hill
Industries
Start-up of new sawmill and dry
kilns at Sao Hill Industries
Base Case

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Start-up of pyrolysis charcoal
production, in Uganda
Financial close and start of
construction of Sao Hill
Energy’s 7MWel CHP


Received turn-key offer for CHP
at Sao Hill Energy and agreed
on minority investors
Completion of 90% of the SHI
investment program and
installation of the new log
sorting line
5
Continue expansion towards
228,000 ha of plantations,
planting 5-6,000 ha per year
over 3 years before annual
planting starts increasing
Increase annual growth rate of
new plantings by 30%
Increase industrial revenues by
more than 30% pa with EBITDA
margin close to 20%
Strong grow the transmission
pole business on the back of
well funded electrification
programs
2nd new line at Sao Hill sawmill
and build power plant at Sao Hill
Additional Funding

Highly profitable first full year of
Ugandan industrial operation
Confidential – read important note on the last page
Continuous improvement in land
preparation and silviculture
practices, leading to higher
annual growth rates
3-years Targets
Further planting
Acquire mature ‘trapped’
standing forest in East Africa,
and establish processing
facilities to convert the wood to
salable products
COMPANY OVERVIEW
Geopolitical risk mitigated through stakeholder involvement
Uganda


Range of Effective Risk Mitigation Factors:
Multi-party system introduced in 2006 following
a referendum
1. Operating in countries with developed
systems for property ownership
President Museveni, President since 1986, won
68% of the votes in 2011
2. The Norwegian and other international
donor’s embassies play an important role in
Green Resources’ three primary countries
of operation
Tanzania

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Arguably Africa’s most stable country since
independence in 1961
3. IFC or other international banks represent
an important insurance against confiscation
At the Nov 2010 election, President Kikwete
won 61% of the votes, down from 81% in 2005
4. Managed by best local foresters in a
meritocratic organisation
First multi-party elections held in 1995, and
opposition currently holds 51 of 239
constituency seats in the Parliament
5. Large community development programs
6. Mozambique, Tanzania and Uganda
Improved 10 places on Transparency
International’s (TI) corruption index for 2010
selected as target countries for forest
investments in Africa by key thought
leaders
7. Sale of carbon credits to European
Mozambique

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governments where the buyer takes
security in the carbon stock of the
plantation
Peace agreement in 1992 and first multi-party
elections held in 1994
Last elections were held in 2009 where
President Guebuza won 75% of the votes, up
from 64% in 2005
Improved 14 places on TI’s corruption index for
2010
Confidential – read important note on the last page
6
COMPANY OVERVIEW
Investor equity return profile change as plantations mature
Equity return
requirement

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
Private equity
returns (20-25%)
Some established plantations will be sold to TIMOs, pension funds
and other timberland investors
Other plantations will be sold to energy and industrial companies
Green Resources will continue to acquire land and develop
new plantations, generating superior returns for its
shareholders
Institutional
ownership
African/ EM TIMOs
Infrastructure
returns (8-15%)
Industrial companies
Global TIMOs
Establishment/early development
Confidential – read important note on the last page
Late development /maturity
7
Maturity of
overall
plantation
profile
INDUSTRY OVERVIEW
Demand
Strong underlying fundamentals in the global fiber and biomass market
Good demand
in traditional
Markets

Pulp and paper demand is growing fast in Asia, offsetting decline in the Western demand

Solid wood products are gaining share in the building sector

The markets for fuel-wood and charcoal are still growing fast in Africa

Wood based chemicals have large potential, but still account for a small part of the markets for wood

The EU, United States and China are all providing strong government support to their domestic bio-energy sectors
Growth of the
bio-energy
sector
Alternative
Energy
Problems
Supply
Reduction in
illegal logging



China’s NDRC has announced a rise in its national wood pellet target from 2 million tpy in 2009 to 50 million tpy
in 2020
Wind power has proven to be more expensive than expected, and large subsidies required for solar power under
threat due to Governments fiscal distress. UK’s recent renewable support ‘re-balancing’ favoured bio-mass

Large expansion of nuclear expansion unlikely following the Fukushima accident in Japan

Significant declines in illegal harvesting due to stronger legislation, enforcement and shortage of accessible stands

Insect
infestation

Deforestation reduces supply of wood from native forests and makes extraction and transport more expensive

It is estimated that ~10% of the world’s annual harvest of timber has historically been illegal
Significant insect infestations in both Western North America and Russia



Competing
land use
It is estimated the EU will need to import over 200 million m 3 /year of biomass to achieve 20% of energy from
renewable sources


Up to 1 billion m3 of biomass has been killed in British Columbia by the Mountain Pine Beetle
It is expected significant declines in sustainable harvests in both N.W. Russia and the Russian Far East/Siberia
Greater land-use pressure in many regions due to rising demand for land relative to potential supply is resulting in
higher land prices
Uruguay has experienced land price increases of 4-500% over the past decade
In Brazil, land prices in Parana and Santa Catarina, the two main pine states, have grown 22% and 33% per annum,
respectively, since 2003
Confidential – read important note on the last page
8
INDSUTRY OVERVIEW
Southern and East Africa included in the Timberland Investment universe
Geographic development of investable universe
Time
Geographies
1980s
1990s
2000s
2007+
US South
US South
US South
US
US West
US West
US West
Existing non-US
New Zealand
New Zealand
South America
Chile
Australia
Central America
Chile
Europe
Brazil
Asia
Uruguay
Southern Africa
Source: GFP, 2007
▲
▲
▲
▲
▲
Africa received new, large attention at this year’s Timber Invest Europe conference in Oct 2011.
institutional timberland investments exceed USD 60 bn, while there are USD 300 bn of investable forests
From 2007, Southern Africa (including Mozambique and Tanzania) was included in Global Forest
Partners’ (the world’s largest Southern hemisphere forest investors) investment universe. Today,
Mozambique and Tanzania are both among the top 12 timberland investment destinations, ahead of
Latvia, Malaysia and the Central American countries
No new world-class plantations are likely to be established in any other new geographic areas for
timberland investments, with the exception of Argentina and Columbia in South America
The Global Emerging Market Forest Funds (GEF, USA), Harvard (USA), ABP (the Netherlands) and the
International Woodland Company (IWC, Denmark) have all invested in East Africa since 2007
Indufor, the consultants, presented Mozambique, Tanzania and Uganda as the most interesting African
forestry countries for forest investments in their initial Africa presentations
Confidential – read important note on the last page
9
INDUSTRY OVERVIEW
Land price appreciation – a potentially additional value driver
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
Uruguay is the most recent country to develop a
large scale forestry and forest industry
Since 2004, land prices in Uruguay have
increased 5x due to rising demand and limited
supply
The timber industry in East Africa resembles
that of Uruguay in the early 2000’s: Strong
productivity/biological growth combined with low
cost of land
Mozambique and Tanzania each have the
potential to establish a larger forested area than
Uruguay
Africa has 37% of the world’s available arable
land, followed by Latin America with 35% and
Asia/Oceania by 11%
Uruguayan land prices (unplanted)
250
3,000
ha sold (000', moving avg.)
USD/ha (moving avg.)
5x
200
2,000
150
1,500
100
1,000
50
500
0
0
2001 2002 2003 2004 2005 2006 2007 2008 2009
Source: Uruguay Ministry of Agriculture
Argentina, Columbia, Mozambique and
Tanzania may be only countries with suitable
locations for a new world scale wood
processing facility
Uruguayan land prices have increased approx. 5x since 2004
East Africa’s timber industry resembles that of Uruguay in the early 2000’s
Confidential – read important note on the last page
2,500
10
Q4
2009
actual
USD/ha (moving avg)

There are six main Southern hemisphere forest
plantation countries: Australia, Brazil, Chile,
New Zealand, South Africa and Uruguay
ha sold (000') moving avg

INDUSTRY OVERVIEW
Fast economic growth in Sub-Saharan Africa
Robust economic growth

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Sub-Saharan Africa is the world’s second
fastest growing region
Mozambique, Uganda and Tanzania are among
the fastest growing countries in Sub-Saharan
Africa
The African economies continued to grow
through the financial crisis
The construction industry grows 1.1-1.5x GDP,
while donor led infrastructure investments drive
electrification and transmission poles
With its large endowment of minerals, fossil
fuels, water and roughly 60% of the world’s
arable, non-cultivated land, Africa will directly
benefit from the on-going development of Asia
Compound Annual Real GDP Growth1 (%, constant exchange rates)
Actual: 2000-2009 CAGR
Developing Asia
Mozambique
Uganda
Tanzania
Sub-Saharan Africa2
Middle East & North Africa
Central & Eastern Europe
World
Latin America
USA
EU
8.0
8.1
7.4
6.7
5.5
4.9
3.9
3.6
3.2
1.9
1.7
Forecast: 2010-2015 CAGR
Developing Asia
Mozambique
Tanzania
Uganda
Sub-Saharan Africa2
Middle East & North Africa
World
Latin America
Central & Eastern Europe
USA
EU
8.6
7.5
7.1
6.8
5.4
4.7
4.5
4.1
3.7
2.6
1.9
Emergence of a strong domestic economy
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1
2
Sub-Saharan Africa’s rate of electrification is 26%, and only 12% in East Africa. This represents major environmental and health
challenges and prevents economic growth. Increased electrification is a high priority for international donors and development banks
80% of Africans rely on biomass for energy (and 2/3 of household income is spent on energy) leading to continued strong growth in
demand for wood and deforestation
Market improvement in political/macro-economic stability and microeconomic reforms have created a robust domestic African economy
In addition, Africa has experienced a ‘productivity revolution’, and has seen the emergence of the urban consumer. Africa now is almost
as urbanized as China (and more so than India), with as many cities of over 1 million people (52) as Europe
Foreign direct investments have grown from USD 9 billion in 2000 to USD 62 billion in 2008. (Relative-to-GDP, this is roughly the same
increase as experienced by China)
Sources: IMF (as of April 2010).
Includes 44 countries: Angola, Benin, Botswana, Burkina Faso, Burundi, Cameroon, Cape Verde, Central African Republic, Chad, Comoros, Democratic Republic of Congo, Republic of Congo, Côte d'Ivoire, Equatorial Guinea, Eritrea, Ethiopia, Gabon, The Gambia, Ghana, Guinea, GuineaBissau, Kenya, Lesotho, Liberia, Madagascar, Malawi, Mali, Mauritius, Mozambique, Namibia, Niger, Nigeria, Rwanda, São Tomé and Príncipe, Senegal, Seychelles, Sierra Leone, South Africa, Swaziland, Tanzania, Togo, Uganda, Zambia, and Zimbabwe.
Confidential – read important note on the last page
11
INDSUTRY OVERVIEW
Continued growth expected in Asia’s wood deficit

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

China’s fibre supply deficit is ~140 million m3 (roundwood equivalent) in 2011, and was only two years ago projected to reach
~150 million m3 by 2015, and 200 million m3 by 2020 (but growth in 2010 and 2011 suggests projections are much too low)
India’s timber supply deficit was just over 9 million m3 in 2009, and is projected to approach 15 million m 3 by 2015 (the
majority of which is expected to be obtained from off-shore plantations)
Given India’s per capita consumption of paper and paperboard is less than 1/6th of China’s, the growth rate in India’s fibre
needs is expected to exceed that of China over the next 10 years
East and Southern Africa are best located to serve these markets. Since 2009, there has been a large (unsustainable)
increase in chip export from South East Asia and of logs from New Zealand and the USA to China
China's Growing Timber Imports (1997 – 2009)
250
Woodchips
Pulp
Million Cubic Meters, RWE
200
Wood Panels
200
Lumber
Logs
150
140
150
115
105
100
59
65
70
75
04
05
79
88
83
07
08
48
50
31
37
22
17
0
Source: RISI
97
98
99
00
01
02
Confidential – read important note on the last page
03
06
12
09
10
11E
15E
20E
FOREST PLANTATIONS
Three classes plantations, all focused on one advantage: growing trees
 Green Resources aims to serve regional solid
wood products markets as well as global
markets for fibre and energy. Plantations are
prioritised into three groups
 Maturing assets: forest infrastructure in place,
plantations near completion, located close to
well developed wood markets and suitable for
debt financing, already generating revenues
from harvesting and carbon

Uganda (Bukaleba and Kachung)

Tanzania’s Southern Highlands (GRL/Sao Hill)
Port of Mombasa
Port of Tanga
Port of Pangani
 High capital – high return assets: represent
2/3 of future planting costs, located near
projected pulp mill sites

Port of Dar es Salaam
Northern Mozambique (Lurio and Niassa)
 Developing projects: Trial planting stopped in
favour of other plantations in Lindi, Tanga and
South Sudan (to be separated from GR).

Potential maintained at low cost

Secure land titles

Obtain certification
Port of Lindi
Port of Mtwara
Port of Nacala
Confidential – read important note on the last page
13
FOREST PLANTATIONS
Increased value creation through higher biological growth rates
Planting material
Purchase of superior seeds
from 10 countries
 First planting of 1.3m hybrid
clones in 2010 and 11
 Establishing own clonal
gardens with tested genetic
material in major locations
 Production of own clones in
Uganda from February 2011
 Investments in automatic
tray-based nurseries

Action points
Improvement
potential /
envisaged effect

Estimated 20% immediate
effect with potential for
additional 30% over next 10
years.
Land preparation
Increasing areas of strip
ploughing and ripping
(target of 20% in 2011 and
50% by 2012 / 2013)
 Controlled burning of dry
grass prior to spraying
 Pre-spray with glyphosate to
combat weed on all
eucalyptus plantations from
2011, and all other plantings
by 2012. Increase tractor
based spraying to 50%.

Increase early growth with
20%
 Reduce costs with 20% due
to higher survival

Silviculture practices
Increase technical knowledge
level for supervisors and
managers
 Implement total weed control
operations until canopy
closure for all plantings
 Use of fertilizer on all
eucalyptus from 2011, and on
pine from 2011-12
 New forest management
information system


Target 25% for the first 5
years; potential for
additional 25% with adapted
clone programs
Green Resources expects eucalyptus growth rates to increase by 36-50% from 2009 to 2014.
In 20 years new planting expects to yield 50-100% more than current planting
Confidential – read important note on the last page
14
FOREST PLANTATIONS
Extensive community development integral to land acquisitions
Green Resources is responsible for about 2/3 of
the public infrasturcture (community halls,
dispensaries, schools, etc) in the villages where it
has operated the longest:
Uchindile Forest Project
 2 classrooms completed at Uchindile primary school.
2 more in progress
 Dormitory for Uchindile school completed
4 classrooms at Mlimba
 Teacher’s office for Uchindile in progress
Doctor’s House, Kitete
 Dispensary and Doctor’s house completed at Kitete
 Community hall at Uchindile and dispensary at
Lugala village next on the agenda
Mapanda Forest Project
 Teacher’s house in progress at Mapanda
 Communtiy hall at Chogo to be completed 1H 2010
Ibaku primary school, Masangati
 Chogo primary school, 1st classroom finished 2009,
2nd to be finished 1H 2010, 3rd classroom started
Feb 2010
Dispensary, Kitete
Idete Forest Project
 Primary and nursery school completed at Idete
village
 Community hall in progress at Idete
 Community hall and dispensary next on agenda at
Makungu village
 Dispensary at Lole village also on agenda
4 classrooms at Uchindile
 Bridge connecting road to Makambako village
Confidential – read important note on the last page
15
Community Hall, Chogo
CARBON CREDITS
World leader in forestry carbon offsets



Current plantation projects are expected to generate carbon offsets of 90 millions tonnes of CO2e by 2030, with
revenue potential of USD 800 million (assuming a conservative price of USD 5-8/t of CO2e and resale of tCERs)
Currently, the company has three sales agreements totaling more than 0.5 million tonnes of CO2e, one for voluntary
VERs and two for Kyoto-compliant tCERs
Key achievements include:

In 2009, registered the world’s first forestry project, Uchindile/Mapanda, under the Verified Carbon Standard (VCS)

In 2010, issued and sold the world’s first forestry carbon credits under the VCS, generating USD 1 million


In 2011, Green Resource’s first Clean Development Mechanism (CDM) project registered with Kachung, Uganda. Idete in
Tanzania has been issued a draft validation report and is expected to be registered in 2011 as well
Unique selling point through 100% reinvestment of carbon revenues and 10% for community development projects:

The villages of the Uchindile/Mapanda received USD 83,000 from the 2010 sale of carbon credits

Sharing of 10% of revenues with communities provides further sustainable development and secures local support
Cumulative Carbon Stream of Total Projects (million
tons)
Recent Carbon Transactions

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

Confidential – read important note on the last page
16
Carbon credit sales agreement to the Carbon Neutral Company
in Oct ’09 from Uchindile/Mapanda, Tanzania. Received
payment in October 2010.
Second sales agreement signed with Carbon Neutral Company
for Uchindile and Mapanda. USD 0.6 million in payments
expected by end of 2011
Sales agreement with the Government of Norway in January ’09
for CDM credits from Idete reforestation project, Tanzania
Sales agreement with the Swedish Energy Agency for CDM
credits from Kachung, Uganda
Grant financing for three carbon development projects in 2010,
and several more grants likely
CARBON CREDITS
Record prices and growth in forestry carbon

REDD
Biomass
Run-of-river hydro
Landfill
Livestock methane
Wind
Energy efficiency
"Other" Methane Types
Coal mine methane
Solar
40
35
30
25
20
15
10
5
0
Confidential – read important note on the last page
2009
Agroforestry

Voluntary carbon market has evolved as corporations and individuals seek to offset their carbon footprints
 Green marketing (CSR)
 Pre-compliance preparation
The voluntary market allows project developers
 more flexibility (less restrictive than CDM)
 more streamlined process (less time-consuming and costly)
The market has responded
 In 2010 voluntary transactions were the largest ever with an estimated market value of USD 424 million
 Price increases. In 2011 GR sold credits at prices 25% higher than in 2010, driven by a high quality
products, satisfied customers and an improvement in the overall market price for forestry credits
Afforestation/…

Volume
(MtCO2e)
Value (million $)
2009
2010
2009
2010
Voluntary over-thecounter market
55.4
125
357.8
393.5
Of which VCS
16.4
26.1
76.8
134.8
Of which CAR
14.6
13.4
101.9
78.2
Of which Gold
Standard
3.2
4.8
35.2
54.7
Chicago Climate
Exchange
41.4
1.6
49.8
0.2
2010
17
FINANCIALS
Historical P&L and balance sheet
P&L summary
NOKm
Sales
Gains from biological asset value
Gains from carbon offset
Other operating income
Total revenues
growth%
1
155
11 %
2
182
-19 %
-38
-36
-51
-37
-53
-45
-28
-21
65
47 %
66
43 %
125
56 %
133
73 %
-7
-11
-11
-4
EBIT
margin%
58
41 %
56
36 %
114
51 %
129
71 %
Finance costs
EBT
Tax
Net profit
margin%
-4
53
-21
33
23 %
-31
25
-22
3
2%
-17
97
-42
54
24 %
-5
124
-41
83
46 %
EBITDA
margin%
Depreciation
2009
51
103
1H
2011
31
149
2010
69
148
3
4
224
45 %
Cost of sales
Admin and operating expenses
2008
54
84
2
140
Balance sheet summary
Confidential – read important note on the last page
18
NOKm
Cash balances
Receivables and prepayments
Inventories
Total current assets
2008
87
30
17
134
2009
34
24
13
71
2010
51
28
19
99
1H
2011
25
34
22
82
Property, land and equipment
Land acquisition cost
Biological assets
Carbon offset stock
Other investments
Total fixed assets
62
63
301
385
10
374
24
472
109
34
515
3
2
662
111
24
638
2
2
777
508
543
761
859
43
1
44
18
18
30
4
33
24
Deferred taxes
Borrowings
Long term liabilities
55
69
124
67
20
87
97
66
162
125
101
227
Share capital
Share premium
Advance towards share capital
Translation reserve
Revaluation reserve
Other equity
Retained earnings
Shareholders' equity
141
84
25
10
32
48
340
165
207
-23
9
29
50
438
171
256
63
-65
10
27
104
566
176
319
-78
10
24
157
608
Total liabilities & sh. Equity
508
543
761
859
Total assets
Trade and other payables
Bank overdraft
Total current liabilities
24
GOVERNANCE AND RISKS
Strong corporate governance

IFRS accounting and PWC audited accounts since 2005

Large institutional shareholders, including Phaunos Timber Fund, Storebrand and TRG

Simple corporate structure with fully-owned subsidiaries and shareholders at the top

IFC/Norfund loan dispersed following extensive due diligence process





Strong management including the best national foresters with long record of public service, combined with
experienced professional with from Uruguay and Brazil (forestry) and Estonia (sawmilling)
All ten members of the executive director group are shareholders in Green Resources
FSC certification, the world leading forestry standard, for 67% of standing forest, aiming to cover more
than 75% by the end of 2011
Extensive carbon certification process of forest inventories, environmental and socio-economic issues,
including VCS or CDM certification and CCBA certification
Green Resources aims to follow the highest environmental and social standards
Confidential – read important note on the last page
19
Disclaimer
This document is prepared to provide general information about forest plantations in
Africa and about Green Resources AS. The presentation should be read together
with the company’s published annual reports. While Green Resources’ management
believes the information presented is materially correct as at the date of this
document, neither they nor Green Resources AS, its subsidiaries or its directors,
officers or any other person associated with the company, or its Representatives,
make any representation or warranty (express or implied) as to the accuracy or
completeness of any of this information. Nothing set out in this document is, or shall
be relied upon, as a promise or representation as to the past or future. The
information contained herein may be subject to change without prior notice.
Green Resources AS, Strandveien 35, 1366 Lysaker, Norway
www.greenresources.no
Confidential – read important note on the last page
20