1. What’s Your Problem? Best Practices in Forest Management Winning Technologies in Forestry January 2007 Doug Jones Director, Client Services

2. Road Map: Overview Solutions over time and across regions Evolution of management challenges Global perspective Final Remarks

3. Corporate Overview Remsoft Spatial Planning System Remsoft creates and supports the world's leading software for sustainable, spatial management planning.

4. Clients in five continents North America Europe Australia South America Asia

5. Remsoft’s clients include International Paper Canfor UPM Kymmene Washington State Rayonier Stora Enso Bowater Suzano MeadWestvaco Forestry Tasmania Potlatch Weyerhaeuser GMO Plum Creek Timber Company Hancock Global Forest Partners Over 200 million acres world-wide

6. The Remsoft Spatial Planning System Commercial off-the-shelf 3 fully integrated products Spatial Woodstock Stanley Allocation Optimizer

7. Solutions over time and across regions What were the challenges of the time? What solutions were provided over time? How were the solution needs similar and different between geographic regions?

8. Early to Mid 90’s Software - Woodstock Developed as a simulation forest modeling system Optimization added in 1992 DOS based system

9. Pre-Windows User Interface:

10. Early to Mid 90’s Geography Eastern Canada, Alberta Challenges and Solutions Forest estate modeling Sustained yield and coarse ecosystem objectives Management complexity increasing Finance was not the driving force

11. 1995…2000 Software - Stanley Developed for spatial modeling ESRI GIS coverages…e00 files Linked with Woodstock

12. Spatial Harvest Scheduling

13. 1995…2000 Geography USA – Champion International, Temple-Inland Challenges and Solutions “Commercial” optimization model Detailed financial modeling BUT…. Adopting SFI – spatial constraints

14. 1995…2000 Geography Canada – Domtar, Fraser Papers, Weyerhaeuser, Ontario Gov’t… Challenges and Solutions Optimization being accepted Regulative environment – including spatial constraints Evaluate policy – what is the cost? Spatial scheduling is time consuming

15. 2001 Software – Spatial Woodstock Analysts’ toolbox Spatial integration for improved data interchange, reporting, mapping ESRI standards Fully integrated solution

16. The RSPS Interface

17. 2001 Geography New Zealand and Australia Challenges and Solutions Financial modeling Differences between countries Some firsts: Carbon modeling Short-term models Allocation modeling

18. 2003 Software – Allocation Optimizer Wood allocation modeling Demand and supply Fully integrated with Remsoft system

19. Wood Fiber Allocation Sawmill Pulpmill Chip By-product Purchase Logs Destinations Forest Products Forest Origins Residual Products External Products

20. 2003 Geography New Zealand Challenges and Solutions Approach to land valuation Demand drives value Strategic, long-term modeling

21. 2003 Geography Eastern Canada – J.D. Irving and others… Challenges and Solutions “Short-term”, detailed wood allocation model More value from the resource Mergers and aquisitions Supply problems; react to market conditions

22. Present day…. Geography USA, Canada, Aus/NZ, South America… Challenges and Solutions Land valuation – selling and buying Business objectives Land appraisal – income approach Flexibility Multiple investors Varied regions, forest composition, data Turn around time Common system

23. Present Day… Geography Brazil and Uruguay Challenges and Solutions Wood supply issues Fully integrated solution Supply chain modeling Tight information linkages between forest and mill(s)

24. The Future… Challenges and Solutions Ecosystem and non-timber values Spatial landscape modeling Carbon modeling Linkage to other technologies

25. The Future… Challenges and Solutions Ecosystem and non-timber values Fully integrated planning solution Supply chain modeling Moving more towards operational planning Different users of the system

26. The Future… Challenges and Solutions Ecosystem and non-timber values Fully integrated planning solution Software framework Linkages with other technologies Standard business applications, reporting

27. Thank you Doug Jones Director, Client Services