Foresta Group Holdings Limited · ASX:FGH
Foresta — Investor Presentation (December 2020)
19 slides from Foresta's investor presentation, Dec 22, 2020
Slide 1: Transformational Acquisition of Essential Queensland Pty Ltd and Equity Raising
TRANSFORMATIONAL ACQUISITION OF ESSENTIAL QUEENSLAND PTY LTD AND EQUITY RAISING DIVERSIFYING INTO PRODUCTION OF RENEWABLE PINE CHEMICALS DECEMBER 2020
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 recommendation to acquire Company shares. It is not intended to be used on This Invest
Slide 3: Executive Summary
EXECUTIVE SUMMARY EQ brings late stage plant construction LEAF DIVERSIFIES INTO ESTABLISHED to LER ORGANIC PINE CHEMICALS MANUFACTURING MARKET THROUGH STRATEGIC ACQUISITION Patentable process to extract rosin & terpenes (key extracts from pine Clean, highest used in numerous DEC 2020 quality, low co
Slide 4: Vision Mission
VISION MISSION To become a To enter the supply global supplier of chain as the go-to sustainable natural provider of rosin chemicals terpene & bio- based chemical products
Slide 5: Biggest step-change the pine chemicals industry has experienced
Essential Queensland is embarking on the biggest step-change the pine chemicals industry has experienced since the 1950’s. It has developed a world-first, proprietary process for extracting pine chemicals in a sustainable and scalable way. The pine chemical market is estimated at US$10bn.
Slide 6: Transaction Overview
TRANSACTION OVERVIEW $20.35 M + $6.02 M = $26.37 M + $3 M = $29.37 M EQ Acquisition Price LER market cap Prospectus offer (33 LER shares (pre acquisition) (2 cent offer price per for 1 EQ share) Post transaction share) Post money market cap market cap Leaf Resources Limited Plans to complete 100% Tr
Slide 7: Pine Chemicals Market
PINE CHEMICALS MARKET Global pine industry is expected to achieve a CAGR of 5% in coming years1 Pine chemicals are a group of naturally occurring renewable compounds derived from various pine tree species. These $100B global organic chemicals market chemicals are extracted through the distillation o
Slide 8: Multi Billion Dollar End Use Markets
MULTI BILLION DOLLAR END USE ADHESIVES CHEWING GUM INKS PAINT MARKETS REPLACING PETROLEUM BASED CHEMICALS IN THE SUPPLY CHAIN CAR TYRES FOOD ESSENCES DISINFECTANTS PERFUMES
Slide 9: Existing Supply
EXISTING THERE ARE THREE PROCESSES COMMONLY USED TO EXTRACT ROSIN AND TERPENES FROM PINE TREES: SUPPLY CRUDE TALL OIL (CTO) a by-product of the pulp-making process, is fractionated Essential QLD sources pine logs to produce rosin and terpenes (tall oil rosin & terpenes). from plantations, extracts a
Slide 10: Competitive Advantages
COMPETITIVE ADVANTAGES A TRUE SUSTAINABLE SOLUTION LEAF/ESSENTIAL QLD Pine chemical producers Petroleum based pine chemicals (gum tappers) chemical producers Low relative capex Low waste No toxicity Sustainable Semi automated Not labour intensive Food safe quality
Slide 11: Business Model
BUSINESS MODEL Terpene Wood Rosin chips Proprietary Supply of logs from Offtake agreements sustainable extraction forest owners for commodities of pine chemicals
Slide 12: Initial Focus & Growth
INITIAL FOCUS & GROWTH APPLE TREE CREEK SITE 1 2 3 4 NOW DEC 20 JUN 21 MID 21 $5.6M $2.3M $3M Growth ALREADY INVESTED ALREADY FUNDED USE OFFER PROCEEDS By PLANT DUPLICATION • Complete Rosin • Multiplier effect • Single product, • Complete Plant with the potential Extraction Plant pilot plant, manual
Slide 13: Operational Capacity
OPERATIONAL CAPACITY THEORETICAL AT FULL CAPACITY Single Operating Operating at Potential Revenue Agreements Total Plant Apple Tree expected Plant Per tonne in place Revenue Creek site Capacity AUD Deep ROSINS Commodity 6,800 tpa $3,421 $17.0m market Five year order Short term growth Blue chip from
Slide 14: Apple Tree Creek Site
APPLE TREE CREEK SITE 5 YEAR FEEDSTOCK AGREEMENT IN PLACE Initially 15,000 tonnes per Significant forest capacity Agreed delivery at year supply agreement with within 150kms of plant competitive fixed rate first choice over resinous logs Long established relationship with forest owners is a signific
Slide 15: Logical Operational Combination
LOGICAL OPERATIONAL COMBINATION THE ACQUISITION BRINGS TWO HIGHLY COMPATIBLE TECHNOLOGIES TOGETHER Both companies The combined group Focus on Enhances the extraction Has combined technologies to sustainable & value from softwood biomass create a strong position to address renewable large and growing
Slide 16: Pine Wood Chip to Provide New Strategic Feedstock for Glycell Process
PINE WOOD CHIP TO PROVIDE NEW STRATEGIC FEEDSTOCK FOR GLYCELL PROCESS Glycell™ Lignin Cellulosic sugars i.e. glucose Supply of woody Glycell™Proprietary Partnerships for sustainable extraction of chip from EQ stream cellulosic sugars and lignin commodities Offtake
Slide 17: 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 Grant is a co-founder of For the last 20 years Ray Doug has extensive Terence has deep experience as a EQ having been in
Slide 18: Advisory Board
ADVISORY BOARD ENSURES CONTINUITY OF KNOWLEDGE ALEX BAKER BILL BAUM Independent consultant in the bio- Alex Baker is an experienced based chemicals and fuel industry executive with over 25 years multi- since 2014. From 2010 to early 2014, sector experience in the life Bill was Executive Chairman and
Slide 19: Contact Us
CONTACT US SUSTAINABLE PINE INDUSTRIAL CHEMICALS TERRY GRAY +61 417520586 admin@essentialqld.com
Foresta Group Holdings — Investor Presentation (December 2020) on 6ix