1. Stakeholder meeting Floresteca Amsterdam, February 2016

2. Agenda 1.Introduction 2.Financial Statements - Financing 3.Accumulated costs vs retainers SATT 2015 4.Reporting 5.Operational Report Preview 6.Inventory data reporting 7.Management Plan 8.Harvesting report 2015 9.Roadside Prices

3. Floresteca Group was founded in 1994, with the objective of developing and managing large scale teak plantations in Brazil. Floresteca is the world largest private producer of certified (FSC) Teak. 110,000 hectares of land under mgnt 43,000 hectares planted with Teak Production: 100.000 m³/ year Solid timber distribution network Over 33 different farms in Pará and Mato Grosso Over 750 skilled employees FSC certification since 1997 Introduction

4. Introduction - stakeholders All values in hectares

5. Financial Statements FSA

6. Preview Financial Statements FSA 2015 Financing Situation at Dec, 31st 2015

7. Accumulated costs vs retainers SATT - 2015 Total deficit regarding retainers = USD 51 M FSA had to draw bank loans of USD 30 M Conclusion: despite all efforts, no positive overall results are generated from thinnings in Mato Grosso. income has to be generated from Final Cut

8. Reporting IntervalPresent Draft Delivery Date Final Management PlanAOct 15thNov 15th Harvesting ReportA April 1st Quarterly Report + OutlookQ Q + 1 month Parameter Report/ previous PöyryA March 1st Financial StatementsA April 1st

9. Operational Report Preview

10. Forest Inventory Reporting

11. Site Class Maps

12. Growth & Yield forecast Management Plan CFI DBH Individual volume Projection Models Project variables to future conditions Flexible age of future thinnings Optimization Best outcome given assumptions and restrictions

13. Growth & Yield forecast Decision tree of possible harvesting regimes Management Plan

14. 2016 – Planning Criteria. CONSIDERED CONDITIONS AND RESTRICTIONS Basal area of increased competition Market liquidity for each diameter class Stable wood supply Management Plan

15. 2016 – Planning Criteria Basal area of increased competition We consider areas in thinning condition when basal area reaches 12 m²/ha. This trigger has been set based on experiments that showed that increment on DBH starts to be affected as the basal area reaches this state. Market Liquidity Logs with diameter from 16 cm to 25 cm face a liquidity problem; Need to be processed to find better market condition 4.500 m³ per month Stable supply Logs with diameter greater then 25 cm; 3.000 m³ per month Management Plan

16. 2016 – Planning Criteria Management Plan Final harvest decision is based on NPV analysis and areas will be scheduled along the coming years to ensure a stable export market supply.

17. 2016 – Planning Criteria Management Plan Risks involved in waiting longer for final harvest Funghi (more than 20 K m³ harvested in last 2 years in older plantations) Wind Uncentainty in projections (lack of data for older ages) Market uncertainty – price appreciation on larger diameter Economical risks – inflation, exchange rates etc... A fourth thinning will add a USD 3.000/ha cost ‘Better one bird in the hand in than 10 in the air’

18. 2016 – Projected Woodflow – Total Floresteca MT Management Plan

19. 2016 – Areas eligible for harvesting Management Plan

20. Harvesting Report 2015 Accumulated year-end volumes sold

21. Harvesting Report 2015 + Outlook Final Harvest Investors’ Revenues Total USD 467 M Projections under a flat scenario No inflation, no price appreciation, current market conditions

22. Harvesting Report 2015 + Outlook Price Increase Impact Investor result (USD) for different price appreciation rates

23. 2016 – Roadside Prices Management Plan Market prices are based on third party intelligence Firewood markets are down and we are currently not able to sell our whole production For 20-25, a sharp price drop was observed due to current oversupply. High proportional impact of transportation costs for this class. From MT, there is currently no market for wood up to 25 due to logistics, unless firewood or processing 25 and up, roadside prices are lower than previous estimates > 40, First time accessing these markets, main market (China) is cooling down

24. Enhanced returns from Sales & Trading Activities Negotiate best prices from logistic partners Strategy to sell all forest product Negotiate best possible prices Establish reliable customer base Constant supply to market Use economy of scale Mitigate markets risks by having available market intelligence Tax efficiency

25. Enhanced returns from Sales & Trading Activities Market approach Floresteca: Processing raw material to fit market (maximize usable wood) Maintaining existing and wide spread customer base in Asia and local Operating dedicated and experienced sales team on the ground in both Brasil and Asia

26. Thank you! Amsterdam, February 2016