Executive Summary

TFS offers suitable investors the ability to participate in the ownership of this unique, rare and highly demanded commodity. Via the Sophisticated Investment Offer, TFS offers the investor direct ownership of Indian sandalwood tree plantations and provides the investor with returns from the sale of the end sandalwood product, whether as wood or oil (less defined costs and an investment performance fee). The investment is long term in nature (an Indian sandalwood tree is typically harvested by TFS in year 15) and is expected to deliver strong returns over this period with a projected pre-tax annualised IRR of approximately 20%. The product offers 100% tax deductibility by virtue of an ATO product ruling and is ideal for those looking for tax effectiveness, portfolio diversification and long term wealth creation. 100% vendor finance is available.

Competitive Advantage

  • High value commodity with exceptional demand-supply dynamics
  • Multiple Products / Multiple Markets / Proven value and track record
  • TFS – World’s Leading Sandalwood Company
  • Very Strong Financial Position
  • High value commodity with exceptional demand-supply dynamics
  • Strong pharmaceutical products pipeline
  • Significant barriers to entry
  • An alternative asset class providing portfolio diversity and tax deductibility
  • Attractive Returns of approximately 20% IRR

Investment Highlights

Sophisticated Investor Offer:

  • Early bird discount of $80,000 (ex GST) per hectare establishment fee. Increasing to $90,000 per hectare in 2017
  • Minimum investment A$250,000
  • Early bird offer is only available until 31 December 2016
  • Ability to top up investment before 30 June 2017 at agreed price of $80,000 per hectare
  • Attractive Finance package available
  • Investor owns a defined area of Indian Sandalwood plantations co-located in tropical northern Australia with plantations already owned by TFS or its institutional investors
  • Annual fees that can be deferred in return for TFS retaining a percentage of the harvest proceeds
  • Base case pre-tax returns of approximately 20% IRR over a 15 year period
  • Upfront establishment fees and ongoing fees are 100% tax deductible via an ATO ruling.

Board & Management

Dalton Gooding

Non-Executive Chairman

Mr Gooding was formerly a long standing partner at Ernst & Young and is a Fellow of the Institute of Chartered Accountants in Australia. He has over 35 years’ experience and is currently the Senior Partner of Gooding Partners where he advises a wide range of businesses with an emphasis on taxation and accounting issues, due diligence, feasibilities and general business advice.

Frank Wilson

Managing Director

Mr Wilson is the founding Chairman of TFS Corporation Limited having been appointed on 28 March 2000. In December 2006 he was appointed to the role of Executive Chairman, a role which he held until 10 November 2011 when he resigned from the Board. On 12 June 2012 he was re-appointed to the Board in the role of Executive Director followed by the appointment as Executive Chairman on 3 October 2012. The Chairman’s role was relinquished on the appointment of a Non-Executive Chairman on 17 September 2013. He was previously the Managing Partner of the legal firm Wilson & Atkinson, which at the time specialised in taxation, property and commercial law. Mr Wilson is an experienced businessman, who has a long standing involvement in the forestry industry. He is also a governor of the University of Notre Dame.

Julius Matthys

Non-Executive Director

Mr Matthys was Vice President Corporate Affairs for the BHP Billiton Group in Western Australia until 30 June 2016. He has held senior roles in Iron Ore and Aluminium marketing with responsibility for global sales and customer relationships. From 2008 to 2011 he managed the Worsley Alumina Joint Venture between BHP Billiton, Japan Alumina Associates and Sojitz Corporation. Worsley Alumina is one of the largest alumina refineries in the world producing 3.5 million tonnes of alumina per annum.

Giovanni (John) Groppoli

Non-Executive Director

Mr Groppoli is an experienced lawyer. He was a partner of a national law firm Deacons (now Norton Rose) from 1987 to 2004 where he specialised in franchising, mergers and acquisitions, and corporation governance. Mr Groppoli left private practice in 2004 and is currently Managing Director of RGM Equity whose business operations consist of the marketing and distribution of premium international homewares, optical products and accessories, occupational health and safety products and the provision of micro third party logistics / warehousing.

Gillian Franklin

Non-Executive Director

Ms Franklin has extensive commercial experience and is Managing Director and founder of The Heat Group, an Australian distributor of leading cosmetic brands. Over the past 15 years, Ms Franklin has expanded The Heat Group into the largest Australian-owned cosmetics company, distributing international brands such as Max Factor and COVERGIRL as well as an expanding portfolio of its own brands. Ms Franklin has previously held Managing Director and General Management positions for some of Australia's leading consumer companies, including Creative Brands (owners of Australis and Le Tan) and Revlon. She is also on the Board of the Cosmetic, Toiletry and Fragrance Association of Australia (CTFA), ACCORD, the Australian Formula 1 Grand Prix and is a member of their Audit and Risk Committee, and MTC (Melbourne Theatre Company). She brings a compelling track record and substantial experience in general management, sales and marketing in the cosmetics, fine fragrance and pharmaceutical industries, key markets for Sandalwood Album oil.

Michael Kay

Non-Executive Director

Most recently, Mr Kay was Chief Executive Officer and Managing Director of listed salary packaging company, McMillan Shakespeare Ltd, a position he held for six years. Previously Mr Kay had been CEO of the national insurer, AAMI, after serving in a variety of senior roles with that company. Prior to joining AAMI, Mr Kay spent 12 years in private legal practice. Mr Kay is a Director of Royal Automobile Club Insurance (WA), IMF Bentham Limited and Apply Direct Ltd (Executive Chairman). He is a former member of the Commonwealth Consumer Affairs Advisory Council, the Administrative Law Committee of the Law Council of Australia, the Victorian Government Finance Industry Council and the Committee for Melbourne.