Foresta Group Holdings Limited · ASX:FGH
Foresta — Investor Presentation (July 2021)
33 slides from Foresta's investor presentation, Jul 15, 2021
Slide 1: Scale & Expand.
Scale & Expand. FIRST SALES ORDER FROM YASUHARA AND SUCCESSFUL STUMP TRIALS TRIGGER DECISION TO DOUBLE PRODUCTION TO 16,000 TPA INVESTOR RESENTATION, JULY 2021 Strictly Private & Confidential
Slide 2: Disclaimer: forward looking statements
Disclaimer: forward looking statements IMPORTANT: YOU MUST READ THE FOLLOWING BEFORE CONTINUING. NOT INVESTMENT ADVICE SUMMARY INFORMATION This IU does not constitute investment or financial product advice nor any This Investor Update (“IU”) has been prepared by Leaf Resources Limited (ACN 074 recom
Slide 3: Contents
Contents 01.Overview 02.Products 03.Competitive Advantage Company Overview Product Overview Process Timeline Natural Rosin ESG Market Opportunity Natural Terpene Clean Chemicals Wood Pellets Adding Value to Forests Sustainable Advantage Existing Supply Comparison 04.Capital Raising 05.Corporate 06.A
Slide 4: Executive summary
Executive summary Leaf has decided to double production to 16,000tpa of its First product purchase order of Decision made to double Wood pellet opportunity expected natural rosin and terpenes terpene following rigorous testing production to 16,000tpa of rosin to contribute additional $8.0m and appro
Slide 5: Overview
01 Overview
Slide 6: Company Overview
Company Overview Natural and sustainable pine chemical production Following the acquisition of Essential Leaf now utilises the patented natural The Company confirms it is on track for Queensland Pty Ltd (“EQ”) in December organic solvent production process to 8,000tpa production run-rate despite a 2
Slide 7: Terpenes product order, successful stump trials and decision to expand to 16,000tpa
Terpenes product order, successful stump trials and decision to expand to 16,000tpa Jul 2021 July 2021: July 2021: July 2021: Initial agreement with First order Decision to Fast-track decision Equity capital Hancock Timber received of expand output for wood pellet raising to finance Resource Group t
Slide 8: Pine chemicals market opportunity
Pine chemicals US$100bn** market opportunity global organic chemicals market The addressable pine chemical market is estimated at US$10bn, with an additional US$12bn in the replaceable hydrocarbon market* US$22bn** GROWING AT 5% CAGR UNTIL 2027*** pine chemicals + petrochemicals market that can be r
Slide 9: Products
02 Products
Slide 10: Product overview
Product overview Natural Natural Wood Wood Cellulosic Refined Lignin Rosin Terpene Chips Pellets Sugars Glycerol Capital raising to Revenue generating today hasten high yield Long term embedded upside pelletisation
Slide 11: Natural pine rosin
Found along with terpene in pine logs Leaf prides itself in producing world and stumps, pine rosin is a highly class natural pine terpene and natural Natural pine rosin sought-after material, used in various everyday products, from chewing gum to pine rosin in its purest form, with zero additives. t
Slide 12: Natural pine terpene
Natural pine Leaf is the only company in Australia that is extracting terpene from pine Leaf uses continuous counter flow steam distillation process, that is chemical free. It terpene trees and manufacturing natural pine terpene. Terpene is inseparable from is immiscible with water and has a high bo
Slide 13: Natural wood pellets
Part of the proceeds from the capital raising Wood pellets are a renewable alternative to Natural wood will fund pelletisation equipment that is expected to have a 6-month pay-back. coal. Wood-based bioenergy is part of an all-in renewables strategy as explicitly recognised pellets Once the natural
Slide 14: Sustainable competitive advantage
Sustainable competitive 03 advantage
Slide 15: Proprietary and patent pending process
Proprietary and patent pending process Natural terpenes For every tree Trees grown Pine tree Sustainable Waste harvested, on 30-year stumps and extraction of wood chip another is cycle trunks natural pine planted chemicals Natural rosin Wood pellets Forestry process Leaf’s proprietary process
Slide 16: ESG focused
ESG focused As society increasingly moves toward the bio economy, with more sustainable methods of production and Transitioning the chemical supply chain to extraction required, Leaf’s innovative, environmentally an environmental and organic supply chain friendly processes and products are leading t
Slide 17: Proprietary and patent pending process
Proprietary and patent pending process Dedicated to sourcing wood from certified forests SUPPLEMENTING THE NO HEXANE OR TREES SOURCED FROM FSC and only using natural PETROCHEMICAL SUPPLY CHAIN PETROCHEMICALS USED CERTIFIED FORESTS elements such as water, Every 1kg of product Leaf produces Pine chemi
Slide 18: Adding value in the forest supply chain
Adding value in the forest supply chain SUCCESSFUL TRIALS PROVE STUMP HARVESTING BUSINESS CASE AND ALIGNMENT WITH FOREST MANAGERS Benefits of stump Age old problem Leaf’s solution feedstock Stump removal is the largest Leaf covers the cost of stump Stumps contain more pine cost for forestry companie
Slide 19: Sustainable competitive advantages
Sustainable competitive advantages IP PROTECTION International patent pending pine RELATIONSHIPS Long established relationship with chemicals extraction technique for forest owners is a significant barrier producing pure products which to competition. Relationships with encompasses significant know-
Slide 20: Superior over incumbent process and products
A TRULY Superior over sustainable solution incumbent process and products PINE CHEMICAL PETROLEUM LEAF PINE CHEMICALS PRODUCERS BASED CHEMICAL (GUM TAPPERS) PRODUCERS Low relative capex Low waste No toxicity Sustainable Semi automated Not labour intensive Food safe quality
Slide 21: Financing to scale and expand
Financing to scale and 04 expand
Slide 22: Equity capital raising for accelerated expansion
Equity capital raising for accelerated expansion Capital raising expected to deliver tangible and significant shareholder value Leaf completed an equity The placement coincides Wood chip production will Leaf is investigating a placement of $8,000,000 with the decision to double be replaced by wood s
Slide 23: Significant expansion step change
Significant expansion step change Theoretical at 16,000tpa of rosin and terpenes, with many expansion opportunities to increase production beyond this point Previous Capacity Expanded Capacity Revenue Operating capacity Operating capacity Product Revenue Potential Revenue Potential Per tonne AUD* (A
Slide 24: Use of funds Pro-forma capital structure
Use of funds Pro-forma capital structure $8.0 80.0 $0.10 placement shares per share ITEM $ % Capital structure Pre-money Post-money Capital expansion 5,520,000 69 Offer price $0.10 $0.10 Working capital 2,000,000 25 New shares (m) 80.0 Costs of the Offer 480,000 6 Shares on issue (m) 1,492.4 1,572.4
Slide 25: Corporate
05 Corporate
Slide 26: Corporate overview
Corporate overview Strong alignment: Directors own 758,852,880 shares or 50.85% and 70.3% is held by the top 20 shareholders* Top shareholders LER.AX daily share price chart and volume since RTO Position Holder Name Holding % RAMON DUDLEY MOUNTFORT & 1 SHIRLEY JOY MOUNTFORT 590,700,000 39.6 <MOUNTIE
Slide 27: Directors
Directors KEN RICHARDS GRANT YEATMAN RAY MOUNTFORT DOUG RATHBONE AM TERENCE GRAY CHAIRMAN EXECUTIVE DIRECTOR MANAGING DIRECTOR NON-EXEC DIRECTOR NON-EXEC DIRECTOR Over 35 years of experience Grant is a co-founder of EQ For the last 20 years Ray has Doug has extensive experience Terence has deep know
Slide 28: Appendix
06 Appendix
Slide 29: Key terms used in this document
Key terms used in this document TERPENES HYDROCARBON RESINS The essential oil that is present in pine trees A larger group of chemicals that include long carbon chain chemicals from both petroleum based and also pine based chemicals ROSIN The gum or tacky sap present in pine trees SUSTAINABLE Causin
Slide 30: Existing supply
There are three processes commonly used to extract Existing supply rosin and terpenes from pine trees: Traditionally, rosin and terpene are CRUDE TALL OIL (CTO) extracted using environmentally A by-product of the pulp-making process, is fractionated to unfriendly and labour-intensive produce rosin a
Slide 31: Medium term strategic feedstock for glycell process
Medium term strategic feedstock for glycell process Glycell™ Lignin Cellulosic sugars i.e. glucose Supply of woody chip from EQ stream Glycell™Proprietary Partnerships for sustainable extraction of cellulosic sugars and lignin commodities Offtake Supply of woody chip from EQ stream
Slide 32: Risks
Risks Risk Mitigant Risk Mitigant Pine trees tend to be resilient. Most storm events tend to be The founders / key personnel have an affinity to the project and localised and will not affect all properties or to the same degree. Personnel hold equity to ensure ongoing retention. Leaf intends to syst
Slide 33: CONTACT US
CONTACT US TERRY GRAY terry.gray@leafresources.com.au
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