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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
.tsf"
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
'GedrE d.ldhg ls0|n nbd fM RPa sF b aTtig +-F
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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)
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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
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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
-!-
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
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"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
- ' l
Ro Robpunettpack(trial).-.
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HThe AustralianOlive Industryis now gainingattentionand presence
Establishingreputationfor qualityoliveoil
Our expectedyieldis insignificantto worldvolume.....nowever
Our yieldwjll have significancebecauseof timingof production
+
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
t-r .
HFIS
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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 +
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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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