ArborGen: Positioned For Accelerated Growth – presentation

Positioned For
Accelerated Growth
July 2021

Disclaimer
2
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Agenda
•Business Highlights
•Our leading positions
•How we are transforming forest productivity
•Financial performance
•Poised for accelerated growth –macro drivers and outlook for FY22
and beyond
Spokespeople
•Andrew Baum, CEO
•Kathy Parker, VP Finance & Accounting
•Sharon Ludher-Chandra, Company Secretary & Performance
Improvement Director
•Cathy Quinn, Director Marketing & Communications
•George Adams, NZ based independent director
3

Business highlights
FY22 Outlook and Guidance
•US-GAAP EBITDA 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
4
•Global leader in tree improvement technology, transforming
forestry productivity
•Leading positions in all current markets -US South, NZ, Brazil &
Australia
•Superior positioning vis a vis the competition –decades of
proprietary R&D investment, solid production platforms, strong
sales & marketing capability
•Strong market dynamics –strong housing growth trends, growing
focus on reducing carbon emissions
•Extensive commercial operations comprising 18 seedling nurseries,
13 seed producing orchards and overall production capacity of 540
million seedlings ... servicing more than 2,000 customers each year
We are the leading commercialprovider of advanced
genetic tree seedling products
Profitable business well positioned for strong growth

History of ArborGen
5
ArborGen is now beginning to realise the gains from over two decades of investment with proven Mass Control Pollinated (MCP®)
performance at commercial scale; increased market acceptance of the value of MCP products and an increasing supply of MCP seed.
US Seedling
Quality Assurance
(SQA) programme
begins
ArborGen formed through
the consolidation of the
forestry R&D programmes
at Fletcher Challenge (now
ArborGen Holdings
(Rubicon was renamed
ArborGen Holdings in
2019)), International
Paper (IP) and Westvaco
(now WestRock)
Westvaco, Rubicon and IP
contribute substantially all of
their commercial nurseries and
orchards (excluding Brazil) along
with associated R&D programmes
Major
expansion of
MCP orchard
capacity
initiated
CellFor, the only
global clonal pine
competitor, is
acquired
ArborGen licenses
rights to produce
and sell IP
eucalyptus
breeding
programme in
Brazil
Monosem seeders
broadly deployed in
US nurseries
Rubicon
purchases 100%
of ArborGen
Taylor Nursery
leased from South
Carolina
Sugarcane SE
Partnership
2000
2007
2011
2012
2013
2014
2016
2017
2018
2019
Brazil eucalyptus portfolio
expanded through Gerdau
licence; commercial scale
eucalyptus nursery leased in
Brazil
Transactional Event
Operational Event
Timeline Key
2020
Record MCP harvest
completed, ArborGen
poised for growth
Entered into an agreement to
lease with an option to buy
(in 2023) TexMark Timber
Treasury’s nursery and
orchard operations in Texas
Since its formation in 2000, ArborGen has been committed to
meeting the human need for wood, fibre and fuel while protecting
the world’s native forests.

6
U.S. South Loblolly Pine
U.S. South Hardwood
Australia & New Zealand
Radiata Pine
Brazil Loblolly Pine
Brazil Eucalyptus
Leader in three of the largest tree seedling markets in the world
Existing ArborGen operating business
Our business spans over 20 locations in four countries and has more than 185 employees.
270
280
329
294
19
23
39
32
58
50
69
65
0
50
100
150
200
250
300
350
400
450
500
FY 18FY 19FY 20FY 21
Million seedlings
ArborGen Sales Volume
USANZBR

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Leader in three of the largest tree seedling markets in the world
United States
•Largest market representing ~75% of
ArborGen’s sales volume
•Primarily lobolly pine –advanced
genetics (MCP & varietal) comprising
31% of sales in FY21
•Leading supplier of MCP in the US
South
•MCP sales expected to increase
substantially –increasing 30% (or
30m) in FY22
•With increasing supply from
ArborGen’s orchards & continued
demand growth, MCP sales expected
to increase substantially over next
few years
Brazil
•One of the largest commercial
suppliers of seedlings –sells
proprietary and licensed genetics
•Majority of sales are eucalyptus, sold
through distribution network in all
primary eucalyptus growing regions
in Brazil
•More than 50% of eucalyptus sales
are advanced genetics clones
licensed from International Paper,
Gerdau & Vallourec, with ArborGen’s
own proprietary products in pre-
commercial phase now
•Also sells proprietary loblolly pine
genetics and genetics licensed from
Arauco and CMPC
ANZ
•Only NZ seedling provider with
national presence
•Advanced genetics comprised over
80% of ANZ’s radiata pine sales in
FY21
•Much higher % of advanced genetics
sales due to early adoption by large
institutional investors & supply
•Primary supplier to institutional land
owners
•Growing horticulture business
propagating high value horticulture
species –hops, blueberries, rubus

Geographic split
8
United StatesAustralia / New ZealandBrazil
Revenue (FY21)
US-GAAP EBITDA
(FY21)
1
US$11.3m
Production
capacity
Seedling
production
nurseries &
orchards
Key seedling
species
US$36.8m
US$9.9m
US$6.0m
70%
~400m seedlings
2
~40m seedlings
8
nurseries
10
7
nurseries
3
3
nurseries
2
Loblolly pine, slash, longleaf,
other pine and hardwoods
Loblolly pine and
eucalyptus
Radiata pine, eucalyptus (NZ
and AU). Other native and
horticultural species (NZ)
~100m seedlings
3
19%11%
1
orchard
1.US-GAAP EBITDA includes other significant items. In FY21 significant items totalled US$2.0m, comprised of government grant subsidies of US$3.7 million, partially offset by expenses in the period of
US$1.7 million relating to seedlings written-off and incremental COVID-19 expenses incurred in the period.
2.Includes outsourced container production.
3.ArborGen outsource over half of its eucalyptus production and all of its pine production in Brazil. Production capacity quoted relates to internal nurseries (3) and contract nurseries (21).
orchardsorchards

ArborGen: Transforming Forest Productivity
9
We are world leaders in developing and
selling advanced genetics tree seedlings that
deliver significant value to landowners.

Leading technology platform
10
Germplasm
Repository
Own one of the world’s
largest and most diverse
repositories of
commercial tree
germplasm
Repository of more than
30,000 families and the
ability to identify trees
that will perform best in
specific regions and sites
Tree Improvement
Expertise
Built on 100+ years of
collective tree
improvement research
Based on the most
comprehensive and
extensive field trial
program in forestry,
currently conducting
~1,000 field trials
containing more than 1
million trees
Proprietary
Production
Technologies
Enabling
commercialisation of
unique proprietary
products, and entry into
new crop species
Genomics and
Bioinformatics
Pioneering the use of
genomics in loblolly pine
which will accelerate
product development
timelines
ArborGen uses advanced
statistical models and
proprietary growth and
yield models to develop
products with advanced
genetics
Biotechnology
Product
Development
We are developing
eucalyptus products with
herbicide resistance using
our eucalyptus
transformation system
which is one of the
broadest and most
advanced in the world
We are the leading provider of proprietary advanced genetics operating across the entiretechnology spectrum

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•Known superior mother tree and mixed select
father trees
•Plant approximately 600 trees per acre
•First thinning approximately 13 -15 years
•First thinning may yield 40 -50 tonnes per acre
•Final harvest with 20% -50% of trees in
sawtimber
•Available in bareroot and containerised: loblolly
and slash pine
Open Pollinated (OP)
Top 25% of OP tested families
•The top 1% of 8,000 tested Loblolly families
•Substantially higher elite genetic gain by crossing
specific mother and father trees
•Plant approximately 550 trees per acre
•First thinning 1 -2 years earlier
•50 -100% gain in Net Present Value
•Total Revenue gain > 40%
•First thinning yields approximately 30% more
volume with as much as 30% solid wood potential
•Final harvest with 60% -80% of trees in
sawtimber
•Available in Advanced, Select and Elite and 2.0:
bareroot and containerised Loblolly
Mass Control Pollinated (MCP)
Hybrid Crosses of the most Elite Tested Parents
•Each varietal is a genetic copy of a specific tree
rigorously tested for superior traits
•Plant approximately 500 trees per acre
•First thinning 2 -3 years earlier
•80% -120% gain in Net Present Value
•Total revenue gain > 50%
•First thinning yields approximately 60% more
volume with as much as 50% solid wood potential
•Final harvest with > 80% of trees in sawtimber
•Multiple varieties adapted for the entire natural
range of loblolly pine, barefoot and containerised
loblolly
Varietals
Exact Copies of Highest Performing Trees
Seedlings are produced from seed produced through two different production processes: Open Pollinated
Seedlings (OP) and Mass Control Pollinated (MCP or CP) Seedlings. ArborGen also sells varietals (or clones) in the
US, New Zealand and Brazil
Overview of pine products
11

Faster growth rate with first thinning as early as 11 to 13
years
Higher yield with more wood per acre
30 –40% more sawtimber on final harvest vs OP for loblolly
Greater uniformity and quality –straighter, reduced forking,
better branch morphology
Improved disease and stress resistance
Advanced genetics create substantial value for landowners
Indicative only –ultimate value accretion is dependent on site location and
silviculture regime adopted, amongst a range of other factors. Bare land value or
BLV is a specialised Discounted Cash Flow technique used for timberland
investments that calculates the value of bare land in timber production.
84% value accretion
12

Core growth strategy–MCP®growth in the US
Grow the supply and sales of proprietary advanced seedling genetics in the US
ArborGen is now at an inflection point, poised to benefit from 20+ years of investment in developing best-in-class
proprietary MCP products, expanding supply of proprietary genetics through orchards establishments across the
US South, and upgrading customers to MCP seedlings
ArborGen’s best-in-class MCP
seedlings are developed from
crossing specific elite mother
and father parent trees to
generate seed with the highest
genetic potential
ArborGen’s MCP seedlings
deliver substantial gains to
forest owners
More than 20 years of field
trials and published evidence
supporting the superior
performance of MCP
The most advanced and
broadly adapted MCP
pipeline in the industry...
... significantly increasing
MCP supply...
ArborGen has invested
significantly in expanding the
supply of its superior MCP
products, with previous
investments now showing a
marked increase in future
supply
US South MCP Supply Availability
1
million seedling equivalents
0
100
200
300
400
2020202120222023202420252026
EasternWestern
...and favourable market
dynamics, & strong sales
team
The chart shows projected seed supply in seedling equivalents, rather than sales. 2020 year refers to the fiscal year ending March 2021. MCP supply projections are based on a number of factors including the
number of trees in our seed orchards, number of flowers bagged and number of flowers pollinated each year which are subject to climatic variabilities), as well as bushels of cones harvested, pounds of seed
extracted per bushel, and the number of seedlings per pound of seed. As such, actuals may vary from projections due to biological factors outside of our control, as well as operational decisions.
Strong US housing trends
and timber
supply/demand dynamics
in the US South
Increasing demand for new
wood products, particularly
the use of mass timber
Increasing importance of
trees in addressing rising
CO2 levels through
afforestation and
reforestation projects
... combined with the best
sales team in the industry
...driving increased MCP
sales at significantly higher
margins than OP
ArborGen’s MCP seedlings
deliver significant gains to
forest owners and $ margins
6-8 times than that of OP
seedlings
ArborGen is the leading
provider of MCP seedling
products in the US,
responsible for 80+% of all
MCP sales
ArborGen is years ahead of
the competition
13

ArborGen advanced genetics are a
game-changer for forest landowners
"Landowners have one opportunity to influence the
quality of the seedlings planted in a stand.
If the wrong choices are made, the landowner will
suffer the consequences of those decisions for 25
years or longer."
Dr. Steve McKeand
Former Director, NC State
Cooperative Tree Improvement Program
14

Adoption of advanced genetics is reaching tipping point
15
Adoption of MCP is on the
same trajectory as Hybrid Corn
Hybrid Corn transformed agricultural
productivity in the 20th Century
MCP® and other advanced genetic
products will drive forest productivity in
the 21st

16
Our strategic position is translating into results

FY21 financial snapshot
USD $mFY21FY20% change
Revenue52.756.9-7%
Operating Earnings (before other
significant items)
2.62.4+8%
Net earnings
1
(NPAT/NLAT)3.2(2.7)
EBITDA (US-GAAP)
1,2,3
11.35.4+109%
Net Operating Cashflow9.94.8+106%
Net Debt27.429.6-7%
1.Includes other significant items of $2.0 million comprising government grant subsidies of $3.7 million, partially offset by expenses in the period of $1.7 million relating to seedlings
written-off and incremental Covid expenses incurred in the period (2020: a loss of $3.9 million).
2.US-GAAP EBITDA is US-GAAP Earnings Before Interest, Tax, Depreciation and Amortisation. ArborGen uses US-GAAP EBITDA when discussing financial performance. This is a non-GAAP
financial measure and is not recognised within IFRS. Non-GAAP financial measures should not be viewed in isolation nor considered as a substitute for measures reported in accordance
with GAAP. Management believes that US-GAAP EBITDA provides useful information, as it is used internally to evaluate performance, and it is also a measure that equity analysts focus on
for comparative company performance purposes, as the measure removes distortions caused by differences in asset age, depreciation policies and debt:equity structures. A reconciliation
is provided in note 30 of the 31 March 2021 audited financial statements.
3.Excludes public company costs of $1.3 million
•Solid year on year performance
•Pleasing result despite headwinds and
challenges in 2021
•Significant improvements in net
earnings, operating cashflow, EBITDA
•Positive benefit from cashflow initiatives
•Strengthened balance sheet and
reduction in net debt
17

FY21 revenue and seedling sales
18
Sales Revenue
By Region
AustralasiaSouth AmericaUSA
US Loblolly pine sales
Revenue
MCP & VarietalsOpen Pollinated
US Loblolly pine sales
Volume
MCP & VarietalsOpen Pollinated

19
We are positioned for accelerated growth

Macro trends are in our favour
•Strong US housing demand expected to grow over the next decade –
•Prolonged period of underbuilding
•Favourable demographics (average age of Americans ~30 years)
•Ageing housing stock
•Reforestation and forestation projects to reduce carbon emissions
•Growing demand for cross laminated timber –
•a further 200 billion more trees worldwide required by 2030 to
meet projected demand
•NZ Government Policy and support of forestry, combined with aging pine
plantations
•New pulp mills in Brazil, strong demand for eucalyptus based pulp and
charcoal products
20

We are positioned for accelerated growth
Our advanced genetics are now proven at scale and the
transformation to advanced genetics is at an inflection point
No competitor can match our MCP program’s breadth or depth,
and we are continuously developing more valuable products
Our investments in orchard expansions a decade ago
significantly increasing our MCP seed supply
Demographics, global warming and other macro-trends are
providing strong tail winds
Geographic diversity reduces risk
21

Regional outlook for FY22
United States
•Return to pre-COVID sales and
operating processes
•Easing of migrant labour restrictions
•Growing adoption of MCP as value story
becomes evident
•~ 30% increase in MCP seedling supply
in FY22
•Focus on increasing proportion of MCP
seedlings sold
•Strong underlying demand for solid
wood products in the US and structural
supply constraints in Canada, the
Western US and Europe, driving
expansion in US South sawmill capacity
22
Australasia
•Underlying demand drivers for forestry
remain strong
•Continue to focus on NZ horticulture
business, leveraging our expertise
•Crop species include high-value
horticultural species such as hops,
blueberries, rubus and tea
South America
•Orders to date are 70% higher than this
time last year
•Positive market drivers –increasing
exports, new pulp mills and strong
demand for eucalyptus based pulp and
charcoal products
•Expansion of sales and marketing efforts
•Increased in-house production capacity
and lower product costs
•Expanded advanced genetic eucalyptus
portfolio

Strong tailwinds for FY22
•Increased availability of proprietary MCP seedlings in US
•Improving market in all regions
•Higher demand for proprietary genetics in US and Brazil
•Return to pre-pandemic normalcy as COVID vaccine programmes are
rolled out
Beyond FY22
•Increased MCP pollination achieved in 2021 (up 35% yoy) will
materially lift MCP seed volume, and in turn, MCP seedling
production in fiscal year ending March 2024
•Strong housing growth and carbon credits provide significant growth
opportunities
•Opportunity to extend proprietary somatic embryo capabilities,
genomics and tissue culture expertise into other crop species
FY22 guidance
Subject to any uncontrollable factors, we
are targeting US-GAAP EBITDA for the
current year ending March 2022 to be in
the $13 -$14.5 million range –a material
increase on FY21 US-GAAP EBITDA which
included government grant income,
resulting in higher cash flow and further
reduction in net debt
Outlook
23

Contact us
Andrew Baum
Chief Executive Officer (US-based)
T: +1 888 888 7158
E: ambaum@arborgen.com
Sharon Ludher-Chandra
Company Secretary & Performance Improvement Director
(NZ-based)
T: +64 21 898 624
E: info@arborgenholdings.com
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