Executive Summary

TFS is the global leader in sustainable Indian Sandalwood plantation cultivation, management, processing and sales & distribution. Founded in 1997 (ASX listed 2004) TFS is a vertically integrated Indian Sandalwood company.
From a strong financial base and via diversified revenue streams TFS is uniquely positioned to capitalise on the demand / supply imbalance in the global sandalwood market.
Indian sandalwood is one of the world’s oldest traded commodities, deriving multiple products (heartwood and oil) each of which is highly sought after in multiple markets.
Stable demand growth rates – and the cultivation of new markets by TFS – coupled with falling supply levels has seen significant price increases (~15%+ pa) over the past 20+ years.

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Competitive Advantage

• TFS controls the world’s largest source of sustainable Indian Sandalwood supply
• First mover advantage
• Price maker, not price taker
• Over 15 years plantation IP reflected in improved plantation yields
• Vertically integrated business model ensuring control over all aspects of the value chain
• High sovereign & security risks in other countries where sandalwood can be grown
• Exclusive supply agreements in place with end product users at significant premium to spot market
• One of the few remaining providers of a tax effective agribusiness investment
• Low reliance on retail investment income for revenue (<10% in FY ’13)

Investment Highlights

• TFS Share price growth exceeding 200% in past 12 months ($0.57 on 7 March ’13 to $1.71 on 7 March ’14)
• TFS Market Cap: ~A$500m
• TFS will be added to ASX 300 Index from 21 March 2014
• Fully tax deductible investment (ATP Product Ruling 2014/3)
• Independent Research projects IRR >11-12%, based on conservative assumptions of commodity value
• Grower protections in place to mitigate downside risk
• Ability to defer fees to manage cash flows and ongoing risk

Board & Management

Patrick O’Connor

Chairman

Appt Sept ’13. Chairman of Exceed Resources Ltd and Bravura Capital Ltd, Director of Buccaneer Energy Ltd and SAS Telecom Pty Ltd. Former Chairman of WA’s Water Corporation.

Frank Wilson

CEO

Company founder and major shareholder.

Alistair Stevens

CFO

Appt Jan ’14. Former CFO of ThinkSmart and Deputy CFO of BSkyB in the UK

Duncan Caldwell

GM – Financial Products

Appt Dec ’12. Over 20 year career in Corporate & Institutional banking in Australia & UK.