ArborGen Holdings Limited FY22 Results Presentation

FY22 Results Presentation
For the 12 months ended 31 March 2022
27 June 2022

Disclaimer
2
ThispresentationhasbeenpreparedbyArborGenHoldingsLimited(“ArborGen”),toprovideanoverviewoftheperformanceofArborGenanditsactivitiesatthedateofthispresentation.
Itisnotpreparedforanyotherpurposeandmustnotbeprovidedtoanypersonotherthantheintendedrecipient.ThispresentationshouldbereadinconjunctionwithArborGen’sinterim
andannualreports,marketreleasesandotherperiodicandcontinuousdisclosureannouncements,whichareavailableatwww.nzx.com/companies/ARBandwww.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 invitationorsolicitation 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 apromise 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 assumptionsinthis 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’sfinancial
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’sperformance which are not disclosed as GAAP measures in
ArborGen’sfinancial 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.
AllreferencestocurrenciesinthisdocumentareinUSdollars(US$)unlessotherwisestated.

Our Strengths
Unparalleled product portfolios in each of our core markets
Decades of investment in research and intellectual property
Own one of the world’s largest and most diverse repositories of
commercial tree germplasm
~1,000 field trials containing more than one million trees
Service over 2,000 customers each year
Large footprint in existing traditional forestry markets
New opportunities in substantial emerging carbon markets
Strongly positioned for the future with a clear strategy, strong
balance sheet and market leadership position
3
ArborGen is the
leading global commercial
provider of advanced genetics
tree seedling products
We are using our technology
platform, production pipeline
and sales & marketing
capabilities to transform
forest productivity

Our Product Portfolio
We are advancing genetics through breeding
Open Pollinated: OP Advanced, Select and Elite
Produced from best mother and fertilized with pollen of an unknown father tree
ELITE GENETICS PRODUCTS
MCP®: Advanced, Select, Elite, 2.0
Seedlings produced from best mother and father. ArborGen has the most
advanced and most broadly adapted MCP pipeline in the industry.
Varietals
Multiple copies of best MCP seedlings, selected from extensive trials. ArborGen is
the only company in the world with the ability to produce varieties at scale.
4

Our Value Proposition
ArborGen has the most advanced and most broadly adapted MCP pipeline in the industry
Value Drivers: (Productivity + Log Quality) x Price = Value
Quality traits
Lack of log defects controlled by three traits (refer pictures below)
determine the proportion of trees qualifying as high value sawtimber
which typically sell for 2 to 4 times more than pulpwood.
Varietal stand age 8:
•Growth and yield:11.6 tons/acre/year
•Quality: 100% sawtimber potential (STP)
•Value: 2.5x of traditional genetics
Better StraightnessLess DiseaseReduced Forking
Source: Management estimates
5
Key benefits of MCP
Faster growth rate with first thinning as early
as 11 to 13 years
Greater uniformity and quality
Higher yield with more wood per acre Improved disease and stress resistance
30% to 40% more sawtimber on final harvest
vs OP for loblolly
Better straightness, reduced forking and better
branch morphology

Our Traditional End Markets
Supported by strong underlying fundamentals
PULP & PAPER PRODUCTSWOOD PRODUCTS
BIOENERGYCHARCOAL
Primary End Markets
•US housing market supported by strong long-term fundamentals:
•An underbuilt US housing stock resulting from years of
underbuilding
•An aging US housing stock ... median age of an owner-occupied
house now over 40 years
•Strong population demographics ... a large proportion of young
adults moving into the house buying phase
•Timber access and supply issues continue to reduce wood product
production in Western Canada and Central Europe
Resulting in projected strong increase in US Southlumber production,
in turn driving seedling demand
•Increasing domestic and export demand, new pulp mills and strong
charcoal markets resulting from increasing iron metal demand, now
collectively driving strong local demand for eucalyptus and softwood
in Brazil
6

FY22 Performance
All financial results are in US dollars (US$) unless otherwise stated
Results are for continuing operations only and exclude
the ANZ business which was sold in FY22
FY21 numbers have been restated to be continuing operations only
7

FY22 Operating Environment
Impacted by evolving supply chain issues, labour shortages and inflationary pressure
United States:
•Global pandemic, including emergence of Delta and Omicron variants, continued to cause significant disruptions ranging
from transportation issues to labour shortages
•Resulting sawmill closures and slow downs impacted log harvests, and in turn, seedling demand in the period
South America:
•Growth in the pine and eucalyptus seedling markets
•Material impact from COVID-19
New Zealand/Australia:
•Sale of ANZ business in November 2021, as part of strategic review
8

FY22 Commercial Highlights
Long term value proposition becoming more evident
Record US sales of advanced genetics seedlings, up 32% year on year
Advanced genetics seedling sales to private landowner segment up almost
60% year on year
Completion of strategic review and Board-approved strategy to maximise
future value and growth
Sale of ANZ business for NZ$22.5m on 30 November 2021
Acquisition of new 10 million capacity pine nursery in Brazil for BR$4 million
in December 2021
Freeze event combined with extreme winds impacted MCP seed expected
from late calendar 2023
Projected harvest of MCP seed in late calendar 2022 equivalent to over 200
million seedlings, assisting with seed inventory build
Investigation of opportunities in emerging carbon markets
9

FY22 Financial Snapshot
USD $mFY22FY21
Restated
% change
Revenue47.642.8+11%
Operating Earnings (before
other significant items)
2.71.0+170%
Other Significant Items
1
(4.0)1.9
Net earnings (NPAT)1.71.5+13%
Adjusted EBITDA (US-GAAP)
2,3
10.17.4+36%
Net Operating Cash Flow7.59.9-24%
Net Debt11.527.4+58%
1.Other Significant Items of $(4) million comprising Government grant income of $0.9m, COVID impact on unsold seedlings and associated write off of $1.6m, $1.5m
related to the freeze event, and strategic review and other costs of $1.8m (primarily financial, tax and legal advice, and including M&A activity during the period) (FY21:
a gain of $1.9 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 measureremoves distortions caused by
differences in asset age, depreciation policies and debt:equitystructures. A reconciliation is provided in note 30 of the 31 March 2022 audited financial statements.
3.Excludes public company costs of $1.1 million
Pleasing results despite the ongoing
impact of the pandemic
Increased availability of advanced
genetics seedlings, and higher customer
demand, driving sales and earnings
growth
Significant uplift in operating earnings,
increase in revenue and Adjusted US-
GAAP EBITDA
Strengthened balance sheet and
reduction in net debt
10

Two Year Performance
0
10
20
30
40
50
FY21FY22
Revenue*
0
2
4
6
8
10
12
FY21FY22
Adjusted US GAAP EBITDA*
0
2
4
6
8
10
FY21FY22
Operating Cash Flow
0
5
10
15
20
25
30
FY21FY22
Net Debt
0.0
0.5
1.0
1.5
2.0
FY 21FY 22
NPAT*
11
* Continuing operations

FY22 Revenue and Seedling Sales
12
ArborGen Seedling Sales Volume
•Record US sales of MCP seedlings
•MCP & varietal sales comprised
42% of total US loblolly pine sales
volume but delivered 66% of US
loblolly sales revenue
•Global pandemic, including
emergence of Delta and Omicron
variants, continued to cause
significant disruptions resulting in
lower sawmill output and seedling
demand
Sales volume
FY22 (m units)
Sales volume
FY21 (m units)
USA
284294
USA Loblolly MCP %
41%31%
Brazil
7865
Total
362359

FY22 Revenue and Seedling Sales
13
South AmericaUSA
OP
Advanced geneticsSouth AmericaUSAOPAdvanced genetics
Sales Revenue
by Region
Sales Volume
by Region
US Loblolly
Pine Revenue
US Loblolly
Pine Sales Volume

Financial Reconciliation
14
Reconciliation of NZ IFRS to US GAAP EBITDA
Reconciliation of US GAAP EBITDA*
* Under US GAAP, from a statutory reporting perspective, the classification of
the expense items, and other significant items in this table may differ from
what is presented here.
Fiscal year ending March20222021
Per Published IFRS Financial Statements
NPAT1.71.5
Lesstax benefit-4.7-0.6
Plus financing expense1.72.0
Plus depreciation & amortisations9.69.8
EBITDA IFRS - Group8.312.7
Plus corporate costs 1.01.3
EBITDA IFRS - ArborGen9.314.0
add back IFRS adjustments not made under US GAAP
investment in intellectual property-3.1-3.7
Other IFRS adjustments-0.1-1.0
Other significant items4.0-1.9
Adjusted EBITDA - US GAAP10.17.4
Fiscal year ending March20222021
ArborGen - US GAAP
Revenue47.642.8
Gross Margin (excluding DDA)19.617.9
GM %41.2%41.8%
LessSG&A (inc rental income)-6.4-6.8
LessR&D-3.1-3.7
Adjusted EBITDA US GAAP - ArborGen10.17.4

Our Strategy:
Growing Our Future
15

Our Strategy: Growing Our Future
16
Strategic
Pathways
Increase Sales of Advanced Genetic
Seedlings in Targeted Markets
Investigate the Opportunity
in Emerging High Growth
Carbon Markets
Invest in Resources
and Capability to Realise
ArborGen’sPotential
FY23
Focus
•Continued conversion of customers
to higher value advanced genetic
seedlings
•Build on leadership position in US
South, focus on loblolly pine
seedlings
•Evaluate potential opportunities to
expand in targeted regions in the US
•Build on leadership position in Brazil,
focus on eucalyptus and loblolly pine
seedlings
•Actively engage with carbon
registries and major carbon
companies to develop protocols for
plantation forestry
•Partner with carbon project
developers in the US South to
facilitate large scale afforestation
and reforestation projects
•Strategically expand
production capacity in US
South
•Leverage acquisition of new
pine nursery in Brazil
•Lease of third eucalyptus
nursery in Brazil

US South
Core traditional high growth market
•Strong longer term underlying fundamentals supporting the US housing
market (ArborGen’s core end market)
•Timber access and supply in Western Canada and Central Europe has seen
more timber companies purchasing or building mills in US South
•Forest Economic Advisors is projecting the strongest increase in lumber
production to be in the US South, forecasting 24% growth relative to 2021
and to reach 26.0 billion board feet by 2025*
Driving Growth
•Extensive existing footprint in US South to leverage growth
•Leadership position –supply 80% of MCP seedlings in US South
•Increasing demand for advanced genetics’ seedlings from both private
landowner segment and large National Accounts (REITs and TIMOs**)
•Expansion of container capacity across two sites, driving a 60% uplift in
production of containerized seedlings per annum from FY24 onwards
17
* Forest Economic Advisors 2nd Quarter 2022 Timber Quarterly Forecast
**Real Estate Investment Trusts and Timber Investment Management Organisations

Brazil
Emerging traditional high growth market
•Strong underlying market dynamics –increasing domestic and export
demand, new pulp mills and strong charcoal markets resulting from
increasing iron metal demand, collectively driving strong local demand for
eucalyptus and softwood
Driving growth
•One of the largest commercial suppliers of eucalyptus and loblolly pine
seedlings in the Brazilian market
•Acquisition of new 10 million seedling pine nursery to cement position in
local pine markets
•Plans to expand eucalyptus production internal capacity through leasing a
third eucalyptus nursery
•Stronger pricing and demand expected in FY23
18

Global Carbon Markets
Emerging market
•Increasing focus on the importance of reducing greenhouse gases globally –
forests play an important role
•Forest based carbon projects will be increasingly important in creating new
demand for both pine and hardwood seedlings
•Carbon project developers are actively pursuing large scale afforestation and
reforestation projects in the Southern US
Investigating the opportunity
•Actively engaging with carbon registries and major carbon companies to
develop protocols for plantation forestry
•Focus on partnering with carbon project developers in the US South to
facilitate large scale afforestation and reforestation projects
19

Outlook
Benefits of long term focus on advanced genetics is becoming clear and
adoption by landowners is increasing
Well poised to benefit from leadership position in tree improvement
technology, and as the leading commercial supplier of advanced genetics in
the US South and Brazil
Increasing MCP seed supply from flowers pollinated in FY21 and ongoing
maturity of orchards
Geopolitical tension and pandemic flow-on effects would impact the US
forestry market in the near term
Supply chain issues and inflationary pressure expected to continue in FY23
Brazil EBITDA expected to increase significantlyin FY23 ($1million plus),
driven by stronger pricing and increased sales volumes for pine and
eucalyptus
Projecting solid growth from FY24 onwards, as pandemic effects reduce,
and with increasing advanced genetics sales to both National Account
customers and private landowner customers
20