Arborgen Holdings Limited · NZX:ARB

Arborgen — Rubicon — Shareholder Meeting (September 2018)

10 slides from Arborgen's shareholder meeting presentation, Sep 17, 2018

  1. Slide 1: 2018 Annual Shareholders' Meeting

    17 September 2018 2018 Annual Shareholders’ Meeting Annual Shareholders’ Meeting – 2018 David Knott Chairman Page 1

  2. Slide 2: Introduction of Board members and Agenda

    17 September 2018 Annual Shareholders’ Meeting – 2018  Introduction of Board members ‐ Hugh Fletcher ‐ Paul Smart ‐ Luke Moriarty ‐ Ranjan Tandon ‐ Thomas Avery ‐ Ozey Horton Agenda  CEO’s Review  Chairman’s Comments  Shareholder Questions  Resolutions  Refreshments Page 2

  3. Slide 3: Rubicon – 12 Month Review

    17 September 2018 Luke Moriarty – CEO Rubicon – 12 Month Review In 2018, we balanced -  A huge transactional year with strong ArborGen performance  Acquired ArborGen partners’ interests to become 100%1 owner  Resolved complex partner and funding issues to achieve this core objective  Support fro

  4. Slide 4: Rubicon – Funding and Balance Sheet

    17 September 2018 Rubicon – Funding and Balance Sheet 1 Rubicon Consolidated Group US$m Net interest bearing debt at 30 September '17 -19 Cash receipt from Sale of TCLP 15 Dividend from TCLP 1 Operating Cashflow 3 Interest paid -2 Investment in Term Assets -3 ArborGen deferred-acquisition payment -5

  5. Slide 5: Operating Review – ArborGen

    17 September 2018 Operating Review – ArborGen  Performance targets set and met - despite tough hurricane season  Total sales of 347 million seedlings  236 million were loblolly in the US  73 million advanced genetics  MCP sales in that geography lifted 22% on the prior year  Advanced genetics

  6. Slide 6: Historical Financial Metrics – ArborGen

    17 September 2018 Historical Financial Metrics – ArborGen 1 (AG Consolidated Operating Cashflow Gross Margin 2 under US GAAP) (post interest, pre capex & nwc) US$ millions $5 $25 US$ millions $20 $0 $15 -$5 $10 -$10 $5 $0 -$15 2015 2016 2017 2018 2019F 2015 2016 2017 2018 2019F 2 Pre depreciation EB

  7. Slide 7: ArborGen – Looking Ahead

    17 September 2018 ArborGen – Looking Ahead  The ‘tree machine’ platform has been built  Advanced genetics product portfolio is in place  Regulatory approval is not required  Pipeline of new products continued to be built ex annual R&D spend  Conversion to higher-value genetics in the US is now

  8. Slide 8: Rubicon – Looking Ahead

    17 September 2018 Rubicon – Looking Ahead  Edison Research -  Analyst report issued last week  Available on line for free  Initial (conservative) valuation of RBC is NZ 741 cents per share  2.5x the current share price  Supportive of our carrying value of NZ 48 2 cents per share  Gives creden

  9. Slide 9: Rubicon – Go-forward and Resolutions

    17 September 2018 Rubicon – Go-forward  Rubicon is now the 100% owner of ArborGen  Now to convert that position into demonstrable value for RBC  Prime objective is to generate cash  Streamline operations and reduce cost – ‘one company’ program  Recruit directors for the Rubicon Board  US focus

  10. Slide 10: Resolutions

    17 September 2018 Resolutions Resolution 5 To authorise that: the maximum aggregate remuneration able to be paid to the non-executive Directors of the Company in 2018 be increased by NZ$25,000 from NZ$800,000 to NZ$825,000 with immediate effect; and of the NZ$825,000 maximum aggregate remuneration a

Rubicon — Shareholder Meeting (September 2018) on 6ix