ARBORGEN HOLDINGS

FY21 Results

Presentation

For the 12 months ended 31 March 2021

Dated 27 May 2021

DISCLAIMER

This presentation has been prepared by ArborGen Holdings Limited ("ArborGen"), to provide an overview of the performance of ArborGen and its activities at the date of this presentation. It is not prepared for any other purpose and must not be provided to any person other than the intended recipient. This presentation should be read in conjunction with ArborGen's interim and annual reports, market releases and other periodic and continuous disclosure announcements, which are available at www.nzx.com/companies/ARB and www.arborgenholdings.com.

The information in this presentation is of a general nature only. It is not a complete description of ArborGen.

This presentation is not a recommendation or offer of financial products for subscription, purchase or sale, or an invitation or solicitation for such offers.

This presentation is not intended as investment, financial or other advice and must not be relied on by any prospective investor. It does not take into account any particular prospective investor's objectives, financial situation, circumstances or needs, and does not purport to contain all the information that a prospective investor may require. Any person who is considering an investment in ArborGen securities should obtain independent professional advice prior to making an investment decision, and should make any investment decision having regard to that person's own objectives, financial situation, circumstances and needs.

Past performance information contained in this presentation is not an indication of future performance and should not be relied upon as such. This presentation may also contain forward looking statements with respect to the financial condition, results of operations and business, and business strategy of ArborGen. Information about the future, by its nature, involves inherent risks and uncertainties. Accordingly, nothing in this presentation is a promise or representation as to the future or a promise or representation that an transaction or outcome referred to in this presentation will proceed or occur on the basis described in this presentation. Statements or assumptions in this presentation as to future matters may prove to be incorrect.

A number of financial measures are used in this presentation and should not be considered in isolation from, or as a substitute for, the information provided in ArborGen's financial statements available at www.arborgenholdings.com. This presentation may include non-GAAP financial measures. This information has been included on the basis that ArborGen management and directors consider that this non-GAAP information assists readers to understand the key drivers of ArborGen's performance which are not disclosed as GAAP measures in ArborGen's financial statements. ArborGen and its related companies and their respective directors, employees and representatives make no representation or warranty of any nature (including as to accuracy or completeness) in respect of this presentation and will have no liability (including for negligence) for any errors in or omissions from, or for any loss (whether foreseeable or not) arising in connection with the use of or reliance on, information in this presentation.

All references to currencies in this document are in US dollars (US$) unless otherwise stated.

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FY21: DELIVERING ON OUR VISION

FY21 results provide validation of the strategic vision, with the value story now becoming apparent. Strong momentum and supportive tailwinds will drive further growth in FY22 and beyond.

  • Solid year on year performance in FY21 with significant improvements in net earnings, operating cash flow and US-
    GAAP EBITDA
    • Profit growth in line with expectations despite Covid impact
    • Material improvement in NPAT to $3.2m ($2.7m loss in FY20)
    • Strong operating cash flow of $9.9m, up 106%
    • Reduction in net debt to $27.4m, down $2.2m FY21
    • Doubling of US-GAAP EBITDA to $11.3m, up 109%
  • Well positioned for FY22 with 30% increase in MCP seed harvested
    • Further growth of MCP expected in future years from maturity of orchards and flowers pollinated in FY21
    • 10+ year lead on the competition in loblolly pine advanced genetics supported by decades of investment developing the best proprietary genetics and deploying these in seed orchards

All references to currencies in this document are in US dollars (US$) unless otherwise stated.

FY22 Outlook and Guidance

  • US-GAAPEBITDA guidance for FY22 of $13 - $14.5 million - a material increase on FY21 US- GAAP EBITDA which included government grant income, resulting in higher cash flow and further reduction in net debt
  • Strong tailwinds for FY22 and beyond - strong housing growth and carbon credits provide significant growth opportunities, with added opportunity to extend proprietary intellectual property into other crop species

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OUR BUSINESS

We are a leading global provider of conventional and advanced genetics tree seedling products.

  • Largest global commercial supplier of tree seedlings, specialising in loblolly pine (US and Brazil), radiata pine (NZ) and eucalyptus (Brazil and Australia) plantation forestry species
  • Leading provider of advanced genetics for the forest industry in these regions, offering high-value products that significantly improve the productivity of a given acre of forestry land
  • Unique IP and field trails demonstrating the out-performance of our advanced genetic products. Continued significant investment in R&D and state of the art technology to drive continuous improvement
  • Competitive advantage driven by decades of R&D, intellectual property, investment and capability
  • DNA repository of more than 30,000 families and ability to identify trees that will perform best in specific regions and sites
  • 18 seedling nurseries, 12 seed producing orchards and overall production capacity of 540 million
  • Servicing more than 2,000 customers each year

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OUR VISION

We are building a global, high growth business by bringing proprietary seedlings that offer "step changes" in productivity to the forestry industry

  • We have unparalleled product portfolios in each of our core markets
  • Comprehensive Technology platform
  • Over 5,000 next-generation pine products and 200+ eucalyptus in pipeline
  • Own one of the world's largest and most diverse repositories of commercial tree germplasm
  • Catalogued roughly 30,000 unique varieties
  • Currently conducting ~1,000 field trials containing more than one million trees
  • Base of over 8,500 customers

Primary End Markets

WOOD PRODUCTS

PULP & PAPER PRODUCTS

BIOENERGY

CHARCOAL

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ArborGen Holdings Ltd. published this content on 26 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 May 2021 02:16:02 UTC.