ArborGen Holdings Announces Interim Result

Interim Review 2020

Page 1




Chairman’s Letter

Dear Shareholder

This Report outlines our performance for the six-month period to 30 September 2020.

In the face of unprecedented headwinds, it is our pleasure to report to you strong year-over-year performance
for the first six months, with operating earnings (before abnormals) up well over 200% and operating cash flow
up $5.7 million. As we will outline in greater detail below, the Board and management are resolutely focusing
on those key initiatives identified that will materially grow our immediate earnings and cash flows. This should
in turn support improved share price performance which has unquestionably been very disappointing this year,
largely due to the significant selling activity of a large shareholder. That said we believe this selling is now
nearing completion and are very encouraged by the support for the stock on the buy-side.

In terms of operational performance, while the global Covid-19 pandemic has presented some challenges this
year, ArborGen continues to operate all of its nurseries and orchards according to regional government
guidelines and regulations. As always, the safety and wellbeing of our employees and customers is paramount
to us.

Interim Results for the Six Months to 30 September 2020

During the six-month period, the Group reported –
 Revenue of $11.9 million, comprising $9.0 million in New Zealand and Australia, $2.8 million in Brazil and $0.1 million
in the US. Although down on the $14.2 million reported in the prior comparable period, this was not unexpected,
with a reduction of the NZ Government’s one billion trees programme seeing low-value seedling sales in NZ fall by
$0.7 million, the impact of Covid-19 in the hard-hit Brazil region reducing seedling sales in the first six month period
by $0.8 million (some of which will be recovered in the second half of the year), and lower seedling sales in the US in
April/May due to timing (seedling revenues in ArborGen’s largest market – the US, are heavily weighted to the second
half of our fiscal year).
 Operating earnings before abnormal items of $2.0 million, up $1.4 million on the $0.6 million recorded in the prior
comparable period driven primarily by a $1.1 million reduction in administration expenditure to $7.8 million
(including $0.2 million of Covid-19 related costs).
 Net earnings of $4.0 million
1
, including $2.6 million of Covid-19 related government grant income, up from a loss of
$3.0 million recorded in the prior period. During the period, we received $2.35 million from the US Small Business
Administration (SBA) under the Paycheck Protection Program (PPP) which was recognised as other income in the six-
month result. The prior comparable period net loss of $3.0 million included $2.8 million of abnormal charges
comprising $1 million of seedling credits provided to customers to address seedling survival claims, $1.6 million of
seed cost adjustments, and $0.2 million of transaction-related costs.
 US-GAAP underlying loss,
2,3
of $2.2 million (which is the equivalent of US-GAAP EBITDA adjusted for abnormal items,
and NZ public company costs) – an improvement on the prior comparable period loss of $3.0 million (US-GAAP EBITDA
is heavily weighted to the second half of the fiscal year when US seedling sales occur).
 Net cash from operating activities of $3.3 million, up $5.7 million from the net cash used of $2.4 million in the prior
comparable period.
 Net debt (excluding $6.4 million of capitalised leases) of $30.3 million, down from $31.6 million in the prior
comparable period despite a $4.7 million increase in inventory primarily due to growth in mass control pollinated
(“MCP”) work-in-progress seed inventory in the US, and increased seedling crop inventory in NZ for next year’s sales.

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Progressing Our Cash Flow and Earnings Growth Goals

We continue to progress the strategic, operational, and financial goals we have set for the business.
As shareholders know well, our core strategy is to encourage customer adoption of our higher value genetics in the US –
i.e. upgrading customers to MCP products from open pollinated (“OP”) products resulting in substantial productivity and
yield gains for our customers and a material increase in our margins.
Expanding Supply of our MCP Seedlings in the United States
For over a decade now, ArborGen has invested significantly in developing its best-in-class proprietary genetics, deploying
those genetics in our seed orchards, and increasing our MCP bagging and pollination activity to increase seed supply in
future periods. As this next chart shows, this historic activity is now bearing fruit, with the availability of our proprietary
MCP seedlings in the US showing a marked increase in future supply particularly in our highest demand US Coastal and
Piedmont markets as our extensive younger seed orchards start producing seed.


Note: MCP supply projections are based on a number of factors including the number of trees in our seed orchards, number of flowers
bagged and pollinated, bushels of cones harvested, pounds of seed extracted per bushel, and the number of plantable seedlings per
pound of seed. Accordingly, actuals may vary from projections due to biological factors outside of our control.


Importantly, this year’s cone harvesting (now complete) indicate a material increase in MCP seed production across our
US orchards over last year’s levels, particularly in our severely constrained Coastal regions. This relates to seed that will
be available for MCP seedling production and sales next fiscal year (i.e. the 2021-2022 seedling production season). That
said, we are still confirming bushel-to-seed yields as the seed extraction process is currently underway – a process that
typically runs through to February. The chart below is a graphic presentation of the process and time lines involved.


202020212022202320242025
MCP availability
(millions -seedling equivalents)

Page 3
Production Timeline



Increasing the Proportion of Superior, Further-Advanced Products in our US Advanced Genetics Portfolio
In addition to growing MCP seed supply, we are also very focused on advancing our pipeline of next generation advanced
products to ensure we continuously move our customers up the MCP value chain and maintain our strong competitive
lead in the market. In this respect, we focus our product development efforts each year on ensuring the MCP families we
offer our customers are the best available in the market.
By way of example, this year we introduced a fourth MCP product category which we have called MCP 2.0, further
expanding our existing portfolio of MCP advanced, MCP select and MCP elite categories. The MCP elite category currently
represents our best-in-class families that are available to customers across multiple US-South regions, and create a strong
competitive advantage for ArborGen. The MCP 2.0 category represents a further step change improvement, and we are
able to achieve product pricing higher than that of MCP elite. This year, customer demand was such that we sold out of
our MCP elite and MCP 2.0 inventory even before planting this year’s seedling crop.
We have invested significantly in building the supply pipeline of these products, and we project that the availability of
these higher-value MCP products will increase substantially over the next five years.
Added to this is our range of commercial and pre-commercial varietal products. We continue to see validation from field
performance data of our top MCP families and our varietal products pushing the boundaries of what can be done with
respect to loblolly tree improvement. ArborGen is the only global developer and supplier of loblolly varietal products
which represent the pinnacle of genetics value, and beyond the value they create as products themselves, varietals are
used as parents to produce our best in class, proprietary OP and MCP products – which no competitor can match.
Growth Across All Regions in a Capital Light Manner
United States
Shareholders will recall that in the last two years we have expanded our nursery seedling production capacity by some
60 million seedlings through –
 Execution of a long-term lease for a 30 million unit seedling nursery from the State of South Carolina, and
 An agreement with TexMark Timber Treasury (TTT) to lease and operate TTT’s 30 million unit seedling nursery in
Texas (with the right to acquire the properties in 2023).


MCP
bagging
Cone
Harvesting
Seed
sowing
Seedling sales
Year 0Year 1Year 2
Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4
Year 3
Seed
extraction
Calendar

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Our field capacity, spread across eight strategically located nurseries combined with our in-house and outsourced
container capacity allows us to comprehensively address the market while providing room for sales volume increases.
Our primary focus currently is on converting existing customers from OP genetics to higher value advanced genetics, which
does not require additional expansionary capital spend. In this respect, our industrial customers now fully understand the
increased value our advanced genetics offer them in terms of the economic returns delivered to their forest estates and
they have stated objectives ranging from 50% to 90% of their estates being planted with MCP genetics over time. As
previously indicated, we are now focused on extending our conversion activities into the large private segment (i.e. non-
industrial landowners), which comprises more than 50% of the total US seedling market and approximately 60% of our
customer base in seedling unit terms.
Australasia
In Australasia, while seedling sales in New Zealand decreased this year compared to the prior year (which included lower
margin OP sales to support the NZ Government’s one billion trees programme), we are expecting a significant lift in next
year’s seedling sales.
We continue to be focused on growing our business propagating high-value horticultural species, using our expertise in
tissue culture and nursery production to rapidly produce elite germplasm plant material for growers. Currently, we are
working on a wide variety of crops including hops, blueberries, rubus and tea.
Brazil
While year to date sales have been impacted by the Covid-19 pandemic as customers and planting crews deal with new
health and safety standards, and more recently, the extended drought in some areas, we have confirmed orders supporting
a significant lift in sales in the second half of the year.
In terms of our production capability, we continue to benefit from increased in-house production capacity and lower
production costs following the lease of two new nurseries over the last 12 months –
 The lease of a 15 million eucalyptus nursery in Minas Gerais from Brotale (announced in October of last year) which
represents the largest charcoal producing state in Brazil, and
 The lease of a 15 million eucalyptus nursery in Mato Grosso do Sul in April this year.
In terms of our superior genetics offering, we announced earlier this month that ArborGen had entered into an agreement
with Vallourec (one of the leading suppliers of steel in South America, and specialty steel globally) that gives ArborGen
exclusive rights to develop and commercialise Vallourec’s genetically improved eucalyptus clones in Brazil. The partnership
will expand the products ArborGen can offer our customers, as well as allow us to expand into new markets in Brazil.
ArborGen already has exclusive rights to commercialise International Paper’s and Gerdau’s eucalyptus clones in Brazil, and
we also continue to develop our own proprietary eucalyptus clones which we have begun selling in small quantities, with
full-scale commercialisation expected by 2024.
Operational Cash Flow Initiatives
We constantly strive to increase the cash generation performance of our business. The largest single future contributor to
cash flow improvement is the conversion of our customers to higher value genetics. In addition, we have in place a series
of operating initiatives designed to supplement that core objective, which have included -
 The acquisition of ArborGen Inc.’s headquarters in Ridgeville, South Carolina which allowed us to immediately lower
our annual cost for this facility by accessing a financing cost lower than the prior lease rate, as well as rationalise our
operations on site and lease out surplus floor space to a third party. Collectively this improved ArborGen Holdings’
cash flow by approximately $1 million on an annualised basis.

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 Reductions in discretionary overhead costs (selling, administration and R&D), and capital expenditure in all the regions
in which we operate.
 Access to government funding programmes, where we qualify, to mitigate Covid-19 related disruptions.
 Increased margins from improved product mix and improved production yields.
Improved Funding Arrangements
As we previously noted, we have recently renegotiated and extended our revolving credit facility agreement with Synovus
Financial Corporation (Synovus) relating to our $17 million letter of credit (LOC) facility in the US, to 31 August 2023 from
31 August 2021. As part of the amendment to the agreement, Synovus also agreed to –
 Increase the annual 60-day (continuous) pay down maximum borrowing limit to $10 million, up from $7.5 million
previously.
 Release the final $2 million of restricted cash Synovus previously required as collateral.
The interest rate applicable to the LOC is the 30-day London Inter-bank Offered Rate (LIBOR) base rate plus 2.75% with a
minimum annual rate of 3.5%.
The renegotiated agreement provides us with $4.5 million of additional working capital ‘cushion’, and is a recognition of
strengthened performance and the inherent significant seasonality of the business.

Immediate Outlook

Turning to our projection for the fiscal year ending 2021, in August we said –
“We expect US-GAAP underlying earnings
1
[which is the equivalent of US-GAAP EBITDA adjusted for abnormal items, and
before NZ public company costs] for fiscal year ending March 2021, to be higher than the $9.3 million reported for the prior
March 2020 fiscal year, subject to any uncontrollable factors including any impact from Covid-19.”
We continue to believe this, although it will not be until the close of the sales season in the US and Brazil later this fiscal
year before we will actually know the final outcome.
In our largest market - the United States where lifting activities typically commence in December, we now have confirmed
sales orders for approximately 90% of our target seedling revenues. Although we are seeing some impact from Hurricane
Laura and Covid-19 which have affected customer site preparation progress, we typically only finalise sales in the US in
February/March (i.e. three months from now). Importantly, we expect to be sold out of MCP and varietal seedlings, and
currently unallocated OP seedlings are in our strongest markets.

As previously explained, advanced genetics (MCP and varietal) sales in the US are supply constrained this fiscal year and
hence expected to be relatively flat on the prior year. The US Coastal region, which spans North Carolina, South Carolina,
Georgia, Florida and Alabama, is currently where demand for advanced genetics is the strongest, but unfortunately is also
where our MCP seed orchard supply was hit the hardest in 2018 and 2019, resulting in a supply-demand shortage of at
least 30 million MCP seedlings in the current fiscal year. While the inability to meet demand this year is disappointing, it
does give us confidence that with our Coastal MCP seed supply increasing significantly in this year’s harvest (as explained
above), we should expect to see a material lift in MCP seedling sales, and hence earnings, next fiscal year (fiscal year ending
March 2022).

With Australia / New Zealand’s current year seedling sales now complete, we are focused on achieving our horticulture
and quarantine revenues for this year which are heavily weighted to the second half of this fiscal year. We have also mostly
confirmed seedling orders for next fiscal year, with the ordered crop now in the ground across our nurseries in NZ and
Australia. We are pleased to report an approximate 15% increase in seedling orders for next year in NZ with the growth
largely in the Central North Island benefitting from carbon planting initiatives as well as increased harvesting and
reforestation efforts.

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In Brazil, while pine sales have been solid, ArborGen’s eucalyptus sales have to date been affected by the impact of Covid-
19 in the region. Our revised target is to achieve 60 million eucalyptus seedling sales in the current fiscal year and to date
we have confirmed orders for over 90% of this target. We are now extremely focused on ensuring we are able to ship the
required seven to eight million seedlings every month over the next several months.

Finally, I would like to thank all of our stakeholders for their continued support – it is very much appreciated, particularly
in the current environment. As noted at the outset, we are putting considerable effort into the operational performance
and cash generation of this business to ensure the share price value-gap is closed for shareholders as quickly as possible.
I look forward to reporting to you next at the successful conclusion of our fiscal year.



Dave Knott Jr
Chairman

25 November 2020




1. Net earnings include a biological asset gain of $6.8 million ($6.5 million in the prior period) which relates to a share of earnings on
seedling crop still in the ground, as required under IFRS.
2. US GAAP underlying earnings is a non-GAAP earnings measure which does not have a prescribed meaning by GAAP, and may not
be comparable to similar financial information presented by other entities. Please refer to Note 30 of the 31 March 2020 Financial
Statements.
3. Please refer Note 11 of the 30 September 2020 Interim Financial Statements.

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LIMITED AND SUBSIDIARIES
ARBORGEN HOLDINGS LIMITED AND SUBSIDIARIES
Consolidated Income Statement
For the six months ended 30 September 2020







6 monthsYear ended6 months
Sep 2020Mar 2020Sep 2019
NotesUS$mUS$mUS$m
Revenue11.9 56.9 14.2
Cos t of s al es
(9.2) (37.2) (11.2)
Gross profit2.7 19.7 3.0
Change i n fai r val ue of bi ol ogi cal as s ets4
6.8 (0.6) 6.5
Other i ncome0.3 0.3 -
Admi ni s trati on expens e
(7.8) (17.0) (8.9)
Operating earnings excluding items below2.0 2.4 0.6
Government grant i ncome52.6 - -
Inventory adjus tment, extreme weather and trans acti on
rel ated expens es5
- (3.9) (2.8)
Operating profit (loss) before financing expense4.6 (1.5) (2.2)
Fi nanci ng expens e(1.0) (2.3) (1.2)
Profit (loss) before taxation3.6 (3.8) (3.4)
Tax benefi t0.4 1.1 0.4
Net earnings (loss)4.0 (2.7) (3.0)
Bas i c/di l uted earni ngs (l os s ) per s hare i nformati on (cents per s hare)0.8 (0.5) (0.6)
Conti nui ng operati ons0.8 (0.5) (0.6)
Wei ghted average number of s hares outs tandi ng (mi l l i ons of s hares )499.4 497.8 498.6

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ARBORGEN HOLDINGS LIMITED AND SUBSIDIARIES
Consolidated Statement of Comprehensive Income
For the six months ended 30 September 2020







ARBORGEN HOLDINGS LIMITED AND SUBSIDIARIES
Statement of Changes in Equity
For the six months ended 30 September 2020









Unaudi tedAudi tedUnaudi ted
6 monthsYear ended6 months
Sep 2020Mar 2020Sep 2019
NotesUS$mUS$mUS$m
Net earnings (loss)4.0 (2.7) (3.0)
Items that may be recl assi fi ed to the Consol i dated Income Statement:
Movement i n currency transl ati on reserve91.2 (2.5) (1.2)
Movement i n hedge reserve9- (0.7) -
Other comprehensive earnings (loss) (net of tax)1.2 (3.2) (1.2)
Total comprehensive earnings (loss)5.2 (5.9) (4.2)
Unaudi tedAudi tedUnaudi ted
6 monthsYear ended6 months
Sep 2020
Mar 2020Sep 2019
NotesUS$mUS$mUS$m
Total comprehensive earnings (loss)5.2 (5.9) (4.2)
Movement i n ArborGen Hol di ngs sharehol ders' equi ty:
Movement i n i ssued capi tal80.2 1.3 1.3
Movement i n share based payment reserve9
0.1 (1.1) (1.2)
Total movement in shareholder equity5.5 (5.7) (4.1)
Openi ng Group equi ty141.9 147.6 147.6
Closing group equity147.4 141.9 143.5
ARBORGEN HOLDINGS LIMITED AND SUBSIDIARIES

Page 9

ARBORGEN HOLDINGS LIMITED AND SUBSIDIARIES
ARBORGEN HOLDINGS LIMITED AND SUBSIDIARIES
Consolidated Statement of Cash Flows
For the six months ended 30 September 2020







Unaudi tedAudi tedUnaudi ted
6 monthsYear ended6 months
Sep 2020
Mar 2020Sep 2019
US$mUS$mUS$m
Cas h was provi ded from operati ng acti vi ti es
Recei pts from cus tomers19.3 55.7 22.5
Government grants recei ved2.6 - -
Cas h provi ded from operati ng acti vi ti es
21.9 55.7 22.5
Payments to s uppl i ers , empl oyees and other(18.5) (50.9) (24.9)
Cas h (us ed i n) operati ng acti vi ti es(18.5) (50.9) (24.9)
Net cash from (used in) operating activities3.4 4.8 (2.4)
Sal e of as s ets- 0.1 -
Inves tment i n fi xed as s ets(0.7) (5.3) (4.3)
Inves tment i n i ntel l ectual property
(1.8) (4.1) (1.9)
Net cash from (used in) investing activities(2.5) (9.3) (6.2)
Debt drawdowns6.0 25.2 22.5
Repayment of l eas e l i abi l i ti es(0.5) (12.6) (11.9)
Debt repayment
(6.1) (4.7) (0.6)
Interes t pai d(1.2) (2.5) (1.1)
Net cash from (used in) financing activities(1.8) 5.4 8.9
Net movement in cash(0.9) 0.9 0.3
Openi ng cas h, l i qui d depos i ts and res tri cted cas h
7.9 7.2 7.2
Effect of exchange rate changes on net cas h
0.1 (0.2) (0.1)
Closing cash, liquid deposits and restricted cash7.1 7.9 7.4
Net earni ngs4.0 (2.7) (3.0)
Adjus tment for:
Fi nanci ng expens e
1.0 2.5 1.2
Depreci ati on and amorti s ati ons
4.2 9.5 4.3
Taxati on
(0.4) (1.1) (0.4)
Forei gn exchange
0.1 (0.8) (0.3)
Change i n fai r val ue of bi ol ogi cal as s ets
(6.8) 0.6 (6.5)
Other non cas h i tems
0.3 0.2 (0.1)
Cas h fl ow from operati ons before net worki ng capi tal movement
2.4 8.2 (4.8)
Trade and other recei vabl es
6.5 (1.4) 4.2
Inventory
(7.4) (0.5) (2.8)
Trade and other payabl es
1.9 (1.5) 1.0
Net worki ng capi tal movement
1.0 (3.4) 2.4
Net cash from operating activities3.4 4.8 (2.4)

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ARBORGEN HOLDINGS LIMITED AND SUBSIDIARIES
ARBORGEN HOLDINGS LIMITED AND SUBSIDIARIES
Consolidated Balance Sheet
As at 30 September 2020





Unaudi tedAudi tedUnaudi ted
Sep 2020
Mar 2020Sep 2019
NotesUS$mUS$mUS$m
Current assets
Cas h and l i qui d depos i ts
5.1 5.9 5.4
Res tri cted cas h62.0 - -
Trade and other recei vabl es
4.0 10.5 5.0
Inventory
44.2 29.3 39.5
Total current assets
55.3 45.7 49.9
Non current assets
Res tri cted cas h6- 2.0 2.0
Fi xed as s ets
44.0 43.5 44.1
Ri ght-of-us e as s ets
6.4 5.7 5.7
Intel l ectual property
102.5 103.8 104.6
Total non current assets
152.9 155.0 156.4
Total assets
208.2 200.7 206.3
Current liabilities
Trade, other payabl es and provi s i ons
(14.9) (13.1) (15.7)
Current l eas e obl i gati on(0.5) (1.2) (1.1)
Current debt6(4.6) (6.3) (15.1)
Total current liabilities
(20.0) (20.6) (31.9)
Term liabilities
Term debt
6(32.8) (31.2) (23.9)
Deri vati ve fi nanci al i ns truments
(0.7) (0.7) -
Leas e obl i gati on(5.9) (4.5) (4.5)
Deferred taxati on l i abi l i ty
(1.4) (1.8) (2.5)
Total term liabilities
(40.8) (38.2) (30.9)
Total liabilities(60.8) (58.8) (62.8)
Net assets147.4 141.9 143.5
Equity
Share capi tal
8202.5 202.3 202.3
Res erves
9(55.1) (60.4) (58.8)
Total group equity147.4 141.9 143.5
Net Asset Backing US 30 cps US 29 cps US 29 cps
Dave Knott JrPaul Smart
Chai rman of the BoardAudi t Commi ttee Chai rman
25 November 2020

Page 11

ARBORGEN HOLDINGS LIMITED AND SUBSIDIARIES
ARBORGEN HOLDINGS LIMITED AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the six months ended 30 September 2020


1 BASIS OF PRESENTATION
The unaudited financial statements presented are those of ArborGen Holdings Limited and Subsidiaries (the Group) for
the six months from 1 April 2020 to 30 September 2020. The financial statements have been prepared in accordance with
New Zealand International Accounting Standard 34, and because they are interim statements they do not include all of
the information required to be disclosed for full annual financial statements. On the 30th of September 2019 Rubicon
Limited formally changed its name to ArborGen Holdings Limited and also changed its NZX listing ticker to be ARB on that
date. Any historical references to ArborGen Holdings refer also to Rubicon Limited.

These financial statements should be read in conjunction with the audited financial statements for the periods ended 31
March 2020 and 31 March 2019, which have been prepared in accordance with New Zealand International Financial
Reporting Standards (NZ IFRS) and International Financial Reporting Standards (IFRS).

ArborGen Holdings Limited is registered in New Zealand under the Companies Act 1993, is listed on the New Zealand Stock
Exchange, and is a FMC Reporting Entity under the Financial Markets Conduct Act 2013.

The presentation currency used in the preparation of these financial statements is United States dollars (US$), rounded to
the nearest hundred thousand dollars. Consequently all financial numbers are in US$ unless otherwise stated.

Accounting Policies
The accounting policies applied are consistent with those applied in the annual financial statements for the period ended
31 March 2020.

2 APPROVAL OF ACCOUNTS
These financial statements have been prepared on a consolidated Group basis and were approved for issue by the Board
of Directors on 26 November 2020.

3 USE OF ESTIMATES AND JUDGEMENT
The preparation of financial statements in conformity with NZ IFRS requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of revenues and expenses during the reporting period
(refer March 2020 statutory report, note 4, for greater detail). Actual results could differ from those estimates.


4 FAIR VALUE ADJUSTMENT ON BIOLOGICAL ASSET






At 30 September primarily the US crop (which will be lifted prior to year end, being 31 March the following year) is
established and fair valued. This fair value will reverse at year end in March upon sale of the crop. At 31 March 2020,
only the Australasian crops were established and fair valued. The Australasian crops are primarily lifted from late May
through to September each year.


UnauditedAuditedUnaudited
6 m o n t h sYear en d ed6 m o n t h s
S ep 2 0 2 0M ar 2 0 2 0S ep 2 0 1 9
Opening balance0.9 1.5 1.5
Change in fair value of biological assets recognised in income statement
Fair value change for crop to be lifted in the coming period7.7 0.9 8.0
Reversal of prior period fair value change(0.9) (1.5) (1.5)
Ch an ge in fair v alu e o f b io lo gical as s et s reco gn is ed in t h e
in co m e s t at em en t6 . 8 (0 . 6 ) 6 . 5
Clo s in g fair v alu e u p lift b io lo gical as s et7 . 7 0 . 9 8 . 0

Page 12
RBORGEN HOLDINGS LIMITED AND SUBSIDIARIES
ARBORGEN HOLDINGS LIMITED AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the six months ended 30 September 2020

5 GOVERNMENT COVID-19 GRANTS, INVENTORY ADJUSTMENT AND OTHER NON-RECURRING ITEMS
Under the various governmental Covid-19 recovery plans ArborGen has received support in the US, New Zealand and
Australia.

In May 2020 ArborGen Inc received US$2.3 million from the US Small Business Administration (SBA) under the Paycheck
Protection Program (PPP). The PPP is a loan designed to provide a direct incentive for businesses with fewer than 500
employees in the US to keep their workers on the payroll due to the uncertainties caused by Covid-19. The SBA loans will
be forgiven if all employees are kept on the payroll for eight weeks and the money is used for payroll costs, rent, mortgage
interest, or utilities payments over the eight weeks after receiving the loan. At least 75% of the forgiven amount must have
been used for payroll costs which includes employee salaries, hourly wages, sick or medical leave, and group health
insurance premiums. ArborGen has applied for formal forgiveness of the PPP loan, on the basis that all of the requirements
to have this loan forgiven, have been met.

In New Zealand, ArborGen met the eligibility criteria for the New Zealand Government's wage subsidy, and in Australia
received Jobkeeper payments
from the Australian Government, receiving in total $0.3 million.

In each of these jurisdictions ArborGen has met all of the criteria for forgiveness of loans or to retain the subsidies and
recognised $2.6 million as non-recurring income. In addition, to safeguard our employees during the Covid-19 pandemic
ArborGen instituted social distancing and personal protection equipment requirements. As a result of these requirements,
ArborGen has incurred additional expenses of $0.2 million, which are recorded within administration expense.

The inventory adjustment, extreme weather and transaction related expenses of $3.9 million for March 2020 and $2.8
million for September 2019 relate to a number of historical items. These items include expenses relating to seedling
survival issues that affected some of our customers sites in 2019, extreme weather events that lowered the seed
production yield for the 2018/2019 seed harvest, adjustment to varietal inventory and costs related to the acquisition of
ArborGen in 2017. For further details on these items refer to note 7 of the Annual Report 2020.

6 CURRENT DEBT AND TERM DEBT

At 30 September 2020 the Group had debt facilities with the following banks: Synovus Financial Corporation (Synovus) and
AgSouth Farm Credit (AgSouth) in the United States and Westpac New Zealand Limited (Westpac) in New Zealand. In
addition the Group has subordinated promissory notes (Notes) (issued to Directors, shareholders and senior management
in August 2019) to facilitate the US Ridgeville headquarters property purchase.

ArborGen Inc. has a non-revolving promissory note issued to AgSouth for $9.9 million bearing interest at 4.95%, with a
maturity date of 1 May 2036, which is secured against ArborGen's US real estate properties. Annual principal repayments
of $0.6 million are due 1 May each year.

ArborGen's revolving facility agreement with Synovus is a $17 million letter of credit (LOC), which following being
favourably amended, is classified as term debt as at 30 September 2020. The amendment extended the expiry from 31
August 2021 to 31 August 2023 and increased the annual 60-day (continuous) pay down maximum borrowing limit
(between 1 March and 31 August) to $10 million (previously $7.5 million). Synovus will also release the $2 million that was
previously maintained a certificate of deposit (restricted cash 2020; $2 million). The LOC bears interest at the 30 day LIBOR
base rate plus 2.75%, subject to a minimum annual rate of 3.5% (formerly 4.75%), and is collateralised by all of ArborGen
Inc.'s United States assets not otherwise pledged under the AgSouth agreement. The credit agreements with both Synovus
and AgSouth include covenants which require ArborGen Inc. to maintain a minimum net worth of $29 million and $24
million respectively.

Page 13
RBORGEN HOLDINGS LIMITED AND SUBSIDIARIES
ARBORGEN HOLDINGS LIMITED AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the six months ended 30 September 2020

6 CURRENT DEBT AND TERM DEBT continued

ArborGen New Zealand Unlimited (ArborGen NZ) has a NZ$2 million line of credit facility, which is subject to renewal on
an annual basis.

As part of the acquisition of the US Ridgeville headquarters premises the Group has two financing facilities. The first is
represented by the Notes (refer to note 10) issued by ArborGen Inc to related parties (being Directors, shareholders and
senior management) for $2.88 million. The Notes are fully subordinated to all bank debt, repayable at maturity (August
2022), and due to their subordinated nature attracts a 7% per annum interest rate, payable six monthly in arrears.

Rubicon Industries USA LLC (RIUSA) has a $11.1 million mortgage facility from Synovus secured by the Ridgeville
headquarters. The mortgage is a seven-year term facility, based on a 20-year amortising loan, incurring interest at the
30-day LIBOR base rate plus 2% (currently 2.15%). The Group has entered into a seven-year interest rate swap, with
terms that match that of the mortgage, at a fixed rate of 3.52%. The mortgage requires RIUSA to maintain a debt service
coverage ratio of not less than 1.25:1 for the trailing 12 months.

At 30 September 2020 the Group held cash and liquid deposits of $7.1 million (including restricted cash of $2 million on
deposit with Synovus) (2019: $7.4 million, including restricted cash of $2 million) and had debt of $37.4 million and a
lease liability of $6.4 million (2019: $39.0 million of debt plus $5.6 million of lease liability).


7 SEGMENTAL INFORMATION SUMMARY
The Group has only one reportable segment, being 'forestry genetics' and each of the primary statements reflects the full
segmental operations.







UnauditedAuditedUnaudited
6 m o n t h sYear en d ed6 m o n t h s
S ep 2 0 2 0M ar 2 0 2 0S ep 2 0 1 9
F o res t ry gen et icsU S $ mU S $ mU S $ m
Operating revenue11.9 56.9 14.2
Net earnings (loss) after taxation4.7 (1.1) (2.2)
Total assets208.2 200.4 206.1
Liabilities(60.6) (58.3) (62.4)
Reconciliation
Discontinued operations
Total assets - discontinued- - 0.1
Corporate
Net earnings (loss) after taxation(0.7) (1.6) (0.8)
Total assets- 0.3 0.1
Liabilities(0.2) (0.5) (0.4)
To t al Gro u p
Operating revenue11.9 56.9 14.2
Net earnings (loss) after taxation4.0 (2.7) (3.0)
Total assets208.2 200.7 206.3
Liabilities(60.8) (58.8) (62.8)

Page 14


ARBORGEN HOLDINGS LIMITED AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the six months ended 30 September 2020



8 CAPITAL








(1) In accordance with the shareholders' resolution passed at the ArborGen Holdings Annual Shareholders’ meeting held
on 17 September 2018, on 18 September 2018 ArborGen Holdings issued 1,666,050 new shares to the Rubicon Non-
Executive Directors Share Plan (the Trust). The Trust holds the shares on behalf of the three Directors (Tom Avery,
Ozey Horton, and Paul Smart, equally) until the vesting terms are met. The shares vest, to each Director, in three equal
tranches on the first, second and third anniversaries following the date of issue (18 September 2018), provided that
the Director remains a Director of the Company on the relevant anniversary date. The new shares were issued at the
NZX 20-day market VWAP for ArborGen Holdings shares of NZ27.01 cents per share, for a total value of NZ$450,000.
These shares are accounted for as treasury stock until vesting, and the share based transactions are recorded in the
share based payment reserve. On 18 September 2020 the second tranche of 555,351 shares vested to the three
Directors (185,117 each) (refer to note 10 for related party transactions).
(2) In accordance with the shareholders' resolution passed at ArborGen Holdings Annual Shareholders’ meeting held on
17 September 2019, on 18 September 2019 ArborGen Holdings issued 820,998 new shares to the 2019 Rubicon Non-
Executive Director Share Plan (the 2019 Trust). The 2019 Trust will hold the shares on behalf of the Director (George
Adams) until the vesting terms are met. The shares will vest in three equal tranches on the first, second and third
anniversaries following the date of issue (18 September 2019), provided that the Director remains a Director of the
Company on the relevant anniversary date. The new shares were issued at the NZX 20-day market VWAP for ArborGen
Holding shares of NZ18.27 cents per share, for a total value of NZ$150,000. The share based transactions are recorded
in the share based payment reserve and the shares are accounted for as treasury stock until vesting. On 18 September
2020 the first tranche of 273,666 shares vested to George (refer to note 10 for related party transactions).
(3) Pursuant to the settlement agreed with the former CEO and CFO on 29 March 2019, ArborGen Holdings allotted and
issued nine million new ordinary shares in two tranches, four million on 1 April 2019 and five million on 30 May 2019.



UnauditedAuditedUnaudited
S ep 2 0 2 0M ar 2 0 2 0S ep 2 0 1 9
S h are cap it alNoteU S $ mU S $ mU S $ m
Share capital at the beginning of the period202.3 201.0 201.0
Issue of shares
(3)
9- 1.2 1.2
Vesting of shares - Non-Executive Directors Share Plan
(1) (2)
90.2 0.1 0.1
S h are cap it al202.5 202.3 202.3
N u m b er o f s h aresS ep 2 0 2 0M ar 2 0 2 0S ep 2 0 1 9
Opening shares on issue499,395,391 489,574,393 489,574,393
Issue of shares
(3)
9- 9,000,000 9,000,000
Issue of shares
(1) (2)
9- 820,998 820,998
Clo s in g s h ares o n is s u e499,395,391 499,395,391 499,395,391
Treas u ry s t o ckS ep 2 0 2 0M ar 2 0 2 0S ep 2 0 1 9
Opening shares on issue1,931,700 1,666,050 1,666,050
Issue of shares
(1) (2)
9- 820,998 820,998
Vesting of shares
(1)
(829,017) (555,348) (555,348)
Clo s in g t reas u ry s t o ck s h ares o n is s u e1,102,683 1,931,700 1,931,700

Page 15

ARBORGEN HOLDINGS LIMITED AND SUBSIDIARIES
ARBORGEN HOLDINGS LIMITED AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the six months ended 30 September 2020


9 RESERVES




(1) The cash flow hedging reserve records the net movement of cash flow hedging instruments, being interest rate swaps
(refer to note 6).
(2) In September 2019, the Board established a new share-based incentive scheme (Rubicon Limited 2019 Omnibus
Incentive Scheme) permitting the granting of various equity-based awards to officers, employees and directors of the
ArborGen Group. Pursuant to this agreement ArborGen entered in restricted share units (RSU) agreements with 10
ArborGen Inc. employees. If certain financial performance targets are met during the fiscal year ending 31 March
2021, RSUs and conditional cash awards will be granted to the participants at no cost to the participant. The number
of RSUs and cash awards to be granted to each participant will depend on the relevant business unit’s achievement
of the performance targets, which relate to free cash flow before expansion, revenue and EBITDA. Provided
participants remain employed by the Group on the relevant vesting dates, RSUs will vest in three equal tranches as
ordinary shares in the Company and cash awards. Those vesting dates being, the date the Remuneration Committee
determines the FY2021 performance target have been met (Performance Approval Date), then the first and second
anniversaries of the Performance Approval Date. Refer to page 45 of the Annual Report 2020 for more details. The
$0.2m movement in share based payment reserve (for the six months to 30 September 2020) relates to this incentive
scheme.



UnauditedAuditedUnaudited
S ep 2 0 2 0M ar 2 0 2 0S ep 2 0 1 9
Ret ain ed earn in gsNoteU S $ mU S $ mU S $ m
Opening balance(56.5) (53.8) (53.8)
Net earnings4.0 (2.7) (3.0)
Clo s in g b alan ce(52.5) (56.5) (56.8)
Cas h flo w h ed ge res erv e
( 1 )
Opening balance(0.7) - -
Fair value gains (losses) for the year- (0.7) -
Clo s in g b alan ce(0.7) (0.7) -
S h are b as ed p ay m en t s res erv e
Opening balance0.2 1.3 1.3
Non-Executive Directors Share Plan8
(1)
& 8
(2)
0.1 0.2 0.1
Non-Executive Directors Share Plan shares vested8
(1)
& 8
(2)
(0.2) (0.1) (0.1)
Executive settlement share plan
(2)
0.2 - -
Executive settlement share plan shares vested 8
(3)
- (1.2) (1.2)
Clo s in g b alan ce0.3 0.2 0.1
Cu rren cy t ran s lat io n res erv e
Opening balance(3.4) (0.9) (0.9)
Translation of independent foreign operations1.2 (2.5) (1.2)
Clo s in g b alan ce(2.2) (3.4) (2.1)
To t al res erv es(55.1) (60.4) (58.8)

Page 16

ARBORGEN HOLDINGS LIMITED AND SUBSIDIARIES
ARBORGEN HOLDINGS LIMITED AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the six months ended 30 September 2020



10 RELATED PARTY TRANSACTIONS
Under the terms of the two Non-Executive Directors Share Plan's approved by shareholders (17 September 2018 and 17
September 2019), on 18 September 2020 the second tranche of shares vested to the three Directors (Tom Avery, Ozey
Horton and Paul Smart) being 185,117 each (total 555,351) and first tranche of 273,666 shares vested to George Adams.

As part of the acquisition of the US Ridgeville headquarter's premises the Group issued subordinated promissory notes
(Notes) to related parties (being Directors, shareholders and senior management) for $2.88 million. The Notes are fully
subordinated to all bank debt, repayable at maturity (August 2022), and due to their subordinated nature attract a 7% per
annum interest rate, payable six monthly in arrears.


11 NON-GAAP PERFORMANCE MEASURE
ArborGen Holdings shareholders and users of the financial statements are very interested in ArborGen Inc.'s underlying
earnings performance under US-GAAP (as well as under IFRS ), as that is the result that ArborGen Inc. would report in a US
‘listing’ situation. ArborGen Holdings believes 'US-GAAP underlying earnings' (which is the equivalent of US-GAAP adjusted
for abnormal items) provides useful information, as it is used internally to evaluate performance. It is also a measure that
equity analysts focus on for comparative company performance purposes, as the measure removes distortions caused by
different depreciation policies and debt:equity structures. In contrast with US-GAAP, IFRS requires the capitalisation of
ArborGen’s development spend, the amortisation of intellectual property, the accrual of the change in fair value of
biological assets on the seedling crop each year prior to its sale, and the capitalisation of operating leases. Because of
these differences, US-GAAP results, and in particular 'US-GAAP underlying earnings' cannot be easily derived from reported
IFRS numbers. For these reasons and in order to provide users with relevant and understandable information we provide
the reconciliation below.

EBITDA, US-GAAP EBITDA and US-GAAP underlying earnings are all non-GAAP financial measure and are not recognised
under NZ IFRS. As they are not necessarily uniformly defined or utilised, these measures may not be comparable with
similarly titled measures used by other companies. Non-GAAP financial measures should not be viewed in isolation or
considered as a substitute for measures reported in accordance with GAAP. The following table provides users useful
ArborGen Inc. information for year-on-year comparison and reconciles net earnings to 'US-GAAP underlying earnings'.

Page 17
ARBORGEN HOLDINGS LIMITED AND SUBSIDIARIES
ARBORGEN HOLDINGS LIMITED AND SUBSIDIARIES
Notes to the Consolidated Financial Statements
For the six months ended 30 September 2020




UnauditedAuditedUnaudited
6 m o n t h sYear en d ed6 m o n t h s
S ep 2 0 2 0M ar 2 0 2 0S ep 2 0 1 9
NoteU S $ mU S $ mU S $ m
Revenue711.9 56.9 14.2
Cost of sales(9.2) (37.2) (11.2)
Gro s s p ro fit2.7 19.7 3.0
Net earnings (loss)74.7 (1.1) (2.2)
less tax benefit(0.4) (1.1) (0.4)
plus Financing expense1.0 2.3 1.2
Operating profit (loss) before financing expense5.3 0.1 (1.4)
plus Depreciation and amortisations4.2 9.5 4.3
EBI TDA (N Z I F RS )9.5 9.6 2.9
Add back NZ IFRS adjustments
Investment in intellectual property(1.8) (4.1) (1.9)
Change in fair value of biological assets(6.8) 0.6 (6.5)
Other IFRS adjustments (including IFRS 16 adjustment)(0.7) (0.7) (0.3)
U S - GAAP EBI TDA p ro fit (lo s s )0.2 5.4 (5.8)
Add back significant non-recurring items
Inventory adjustment, extreme weather and transaction
related expenses5- 3.9 2.8
Government grants net of Covid-19 additional costs5(2.4) - -
U S - GAAP u n d erly in g earn in gs (lo s s )(2 . 2 ) 9 . 3 (3 . 0 )

Page 18

ARBORGEN HOLDINGS LIMITED AND SUBSIDIARIES
Investor Information




INVESTOR ENQUIRIES/REGISTERED OFFICE
Suite 7, 100 Parnell Road, Auckland
PO Box 68 249, Wellesley St,
Auckland 1141, New Zealand

Telephone: 64 9 356 9800
Email: info@arborgenholdings.com
Website: www.arborgenholdings.com
STOCK EXCHANGE LISTING
The Company’s shares (ARB) are listed on the NZSX.
SHAREHOLDER ENQUIRIES
Shareholders with enquiries about share transactions or
changes of address should contact the Share Registrar:

Computershare Investor Services Limited
Level 2, 159 Hurstmere Road
Takapuna, Auckland
Private Bag 92 119,
Auckland 1142, New Zealand

Telephone: 64 9 488 8777
Facsimile: 64 9 488 8787
Email: enquiry@computershare.co.nz

ELECTRONIC COMMUNICATIONS
You can elect to receive your shareholder communications electronically.

To register, visit www.investorcentre.com/nz. To initially access this website, you will need your CSN or Holder Number
and FIN. You will be guided through a series of steps to register your account, including setting up a new user ID and
password for on-going use of the website. Once logged in, click on “My Profile”. In the Communication preferences
panel, click “update”.

Alternatively send your name, address and CSN or holder number to ecomms@computershare.co.nz advising you wish
to receive your ArborGen Holdings shareholder communications by email.



There are statements in this Report that are ‘forward looking
statements.’ As these forward-looking statements are
predictive in nature, they are subject to a number of risks and
uncertainties relating to the Group, many of which are beyond
our control.
In particular, ArborGen’s operations and results are
significantly influenced by the general level of economic
activity in the various sectors of the economies in which it
competes, particularly in the United States, Brazil, New
Zealand and Australia.
Fluctuations in industrial output and the impact that has on
global demand for wood fibre and hence harvest and
reforestation levels, government environmental and regional
development policies, Covid-19, capital availability, relative
exchange rates, interest rates, the profitability of our
customers, can each have a substantial impact on our
operations and financial condition.
ArborGen-specific risks and uncertainties include (in addition
to those broad economic factors noted above) the global
markets and geographies in which it operates, intellectual
property protection, regulatory approvals, public and
customer acceptance of genetically engineered products, the
rate of customer adoption of advanced seedling products, the
success of its research and development activities, weather
conditions, cone and seed inventory, biological matters, and
the fact that ArborGen’s annual crops and seed orchards are
not the subject of insurance cover.
As a result of the foregoing; actual results, conditions and
conclusions may differ materially from those expressed or
implied by such statements.
All references to currencies in this document are in US dollars
(US$) unless otherwise stated.

---

Interim Results Presentation
Six months ended 30 September 2020
25 November 2020

Disclaimer
ThispresentationhasbeenpreparedbyArborGenHoldingsLimited(“ArborGen”),toprovideageneraloverviewoftheperformanceofArborGenforthesix
monthsended30September2020.Itisnotpreparedforanyotherpurposeandmustnotbeprovidedtoanypersonotherthantheintendedrecipient.This
presentationshouldbereadinconjunctionwithArborGen’sinterimandannualreports,marketreleasesandotherperiodicandcontinuousdisclosure
announcements,whichareavailableatwww.nzx.comandandwww.arborgenholdings.com.
Therearestatementsinthispresentationthatare‘forwardlookingstatements.’Astheseforward-lookingstatementsarepredictiveinnature,theyaresubject
toanumberofrisksanduncertaintiesrelatingtotheGroup,manyofwhicharebeyondourcontrol.Inparticular,ArborGen’soperationsandresultsare
significantlyinfluencedbythegenerallevelofeconomicactivityinthevarioussectorsoftheeconomiesinwhichitcompetes,particularlyintheUnitedStates,
Brazil,NewZealandandAustralia.Fluctuationsinindustrialoutputandtheimpactthathasonglobaldemandforwoodfibreandhenceharvestand
reforestationlevels,governmentenvironmentalandregionaldevelopmentpolicies,Covid-19,capitalavailability,relativeexchangerates,interestrates,the
profitabilityofourcustomers,caneachhaveasubstantialimpactonouroperationsandfinancialcondition.Inaddition,ArborGen-specificrisksand
uncertaintiesinclude(inadditiontothosebroadeconomicfactorsnotedabove)theglobalmarketsandgeographiesinwhichitoperates,intellectualproperty
protection,regulatoryapprovals,publicandcustomeracceptanceofgeneticallyengineeredproducts,therateofcustomeradoptionofadvancedseedling
products,thesuccessofitsresearchanddevelopmentactivities,weatherconditions,coneandseedinventory,biologicalmatters,andthefactthatArborGen’s
annualcropsandseedorchardsarenotthesubjectofinsurancecover.
Asaresultoftheforegoing;actualresults,conditionsandconclusionsmaydiffermateriallyfromthoseexpressedorimpliedbysuchstatements.
AllreferencestocurrenciesinthisdocumentareinUSdollars(US$)unlessotherwisestated.

25 November 2020 | Page 1
SIX-MONTH SEPTEMBER 2020 SUMMARY

Six-Month September 2020 Highlights
25 November 2020 | Page 2
Revenue
$11.9 million
↓ by $2.3 million, due to:
Reduction in Government’s 1B trees programme
Impact of Covid-19 on Brazil’s 1H sales (recovery expected in 2H)
Timing of US sales (US sales are heavily weighted to the 2
nd
half)
Operating earnings beforeabnormal items
$2.0 million
↑ by $1.4 million on prior comparable period (pcp) $0.6 million
Net Earnings*
$4.0 million
↑ by $7.0 million on pcpnet loss of $3.0 million
Net cash generated from operating activities*
$3.3 million
↑ by $5.7 million on pcpuse of $2.4 million
Net bank debt
$30.3 million
↓ by $1.3 million on pcp
*Includes $2.6 million of government grants, $2.35 million of which received from the US Small
Business Administration under the PaycheckProtection Program’

Financial Summary for the Six Months to 30 September 2020
Consolidated Income Statement
25 November 2020 | Page 3
6 Months6 Months
Sep 20Sep 19
US$mUS$m
Revenue11.9 14.2
Cost of sales(9.2) (11.2)
Gro s s p ro fit2.7 3.0
Change in fair value of biological assets6.8 6.5
Other income0.3 -
Administration expense*(7.8) (8.9)
O p erat in g earn in gs exclu d in g it em s b elo w2.0 0.6
Government grant income2.6 -
Inventory adjustment, extreme weather and transaction related expenses- (2.8)
O p erat in g earn in gs (lo s s ) b efo re fin an cin g exp en s e4.6 (2.2)
Financing expense(1.0) (1.2)
Earn in gs (lo s s ) b efo re t axat io n3.6 (3.4)
Tax benefit0.4 0.4
N et earn in gs (lo s s )4.0 (3.0)
*Administration expense includes the amortisation of capitalised intellectual property of $2.9 million. Under IFRS, development expenditure of $1.8
million is capitalised to intellectual property and an amortisation of intellectual property recognised. Under US-GAAP, the $1.8m of development
expenditure is recorded as an expense with no amortisation.

25 November 2020 | Page 4
STRATEGY PROGRESS

Progressing Our Cash Flow and Earnings Growth Goals
Our core strategy is to drive the customer adoption of higher value genetics –this conversion results in substantial
productivity and yield gains for customers and material financial margin expansion.
There are 5 platforms for delivery of $ margin growth –
1.Expanding supply of our MCP seedlings in the United States
2.Increasing the proportion of superior, further-advanced products in our US advanced genetics portfolio
3.Growth across all regions in a capital light manner
4.Operational cash flow initiatives
5.Improved funding arrangements
25 November 2020 | Page 5

5006007008009001,0001,1001,2001,3001,4001,500
OP
MCP - Advanced
MCP - Select
MCP - Elite
MCP - 2.0
Progressing Our Cash Flow and Earnings Growth Goals (continued)
1.Expanding supply of our MCP seedlings in
the United States
•Increasing MCP bagging and pollination
•Maturation of MCP orchards increasing availability
each year going forward
•On-going investment in best-in-class proprietary
genetics
•Cone harvesting indicates a material increase in seed
production for FY22
2.Increasing the US advanced genetics
portfolio
•Product development focuses on MCP seedlings
being best in the market
•Introduced MCP 2.0, adding to existing portfolio of
MCP advanced, select and MCP elite families
•MCP 2.0 is a step-change improvement
•Significant investment in building the supply pipeline
•Field performance data on all products are pushing
the boundaries in respect to loblolly
Bare Land Value (BLV) $ per acre
Substantial value created by our top MCP products *
*Indicative only –ultimate value accretion is dependent on site location and silviculture
regime adopted, amongst a range of other factors.
84% value
accretion
25 November 2020 | Page 6

Progressing Our Cash Flow and Earnings Growth Goals(continued)
25 November 2020 | Page 7
3.Continued growth across all regions in a capital light
manner
•USA
•Nursery expansion (through leases) has increased production capacity
by 60 million seedlings
•Industrial customers understand the value in conversion to higher
value advanced genetics
•Focus is now on extending conversion to the large private customer
segment
•Australasia
•Next year’s seedling sales are expected to increase
•Business growth includes high-value horticultural species such as
hops, blueberries, rubusand tea
•Brazil
•Confirmed orders support a lift in sales
•The lease of two new nurseries has increased production capacity and
lowered costs
•Exclusive rights to Vallourec’seucalyptus clones in Brazil secured
•Development of ArborGen’sproprietary clones continuing

Progressing Our Cash Flow and Earnings Growth Goals(continued)
4. Operational cash flow initiatives
•Acquisition of headquarters in South Carolina and leasing out surplus
space has lowered annual property costs
•Reductions in discretionary overhead expenditure and capex
•Access to government funding programmes mitigates Covid-19 related
disruptions
•Increased margins from improved product mix and improved production
yields
5. Improved funding arrangements
•Synovus credit line
•extension provided additional $4.5m ‘cushion’, recognition of
strengthened performance and seasonality
•Maturity date extended by two years
•Interest rate ‘floor’ of 3.5%
25 November 2020 | Page 8

25 November 2020 | Page 9
OUTLOOK

Outlook
25 November 2020 | Page 10
Completion of this year’s cone harvesting activities now indicate
1
–
a material increase in US MCP seed production over last year’s levels
... particularly in our constrained high-value, high-demand coastal region
202020212022202320242025
MCP availability
(millions -seedling equivalents)
1.Bushel-to-seed yields are yet to be confirmed
2.MCP supply projections are based on a number of factors including the number of trees in our orchards, the number of flowers bagged and pollinated, bushels of cones
harvested, pounds of seed extracted per bushel, and the number of plantableseedlings per pound of seed. Accordingly, actuals may vary from projections due to
biological factors outside of our control.
2

Outlook(continued)
In the US, we –
Have confirmed sales orders for approx. 90% of target seedling revenues (sales will only be finalised in Feb/Mar ‘21)
Expect to be sold out of MCP and varietals this year
Expect to see a material lift in MCP seedling sales and earnings in fiscal year 2022
NZis focusing on achieving horticulture and quarantine revenues, and fiscal year 2022 seedling orders which are up ~15%
In Brazilwe have confirmed orders for 90% of our target of 60 million eucalyptus seedling sales this year
25 November 2020 | Page 11
In August we said –
“We expect US-GAAP underlying earnings* [which is the equivalent of US-GAAP EBITDA adjusted for abnormal items, and
before NZ public company costs] for fiscal year ending March 2021, to be higher than the $9.3 million reported for the prior
March 2020 fiscal year, subject to any uncontrollable factors including any impact from Covid-19.”
We continue to believe this, although it will not be until the close of the sales season in the US and Brazil later this fiscal year
before we will actually know the final outcome.
*US GAAP underlying earnings is a non-GAAP earnings measure which does not have a prescribed meaning by GAAP, and may not be comparable to similar financial information presented by
other entities. Please refer to Note 30 of the 31 March 2020 Financial Statements.

---

Results announcement
(for Equity Security issuer/Equity and Debt Security issuer)
Name of issuer
Reporting Period
Previous Reporting Period
Currency
Amount (millions)Percentage change
Revenue from continuing operationsUS$11.9-16.2%
Total RevenueUS$11.9-16.2%
Net profit/(loss) from continuing operations US$4.0n/a
Total net profit/(loss) US$4.0n/a
Amount per Quoted Equity Security
Imputed amount per Quoted Equity Security
Record Date
Dividend Payment Date
Current period
Prior comparable
period
Net tangible assets per Quoted Equity SecurityUS 9 cps US 8 cps
A brief explanation of any of the figures above necessary to
enable the figures to be understood
Name of person authorised to make this announcement
Contact person for this announcement
Contact phone number
Contact email address
Date of release through MAP
Unaudited financial statements accompany this announcement.
Authority for this announcement
Sharon Ludher-Chandra
Sharon Ludher-Chandra
09 356 9800
info@arborgenholdings.com
25 November 2020
Not applicable
Not applicable
Not applicable
Please refer to accompanying Interim
Review
Interim/Final Dividend
No dividend is proposed for the period
Results for announcement to the market
ArborGen Holdings Limited
6 months to 30 September 2020
6 months to 30 September 2019
US Dollars