Annual Meeting Chair Address and Presentation

8 December 2022
New Zealand Rural Land Company (NZL.NZX) - Chair Address to ASM
NZL reported a record net profit after tax of $39.7 million for the period ending 30 June 2022. Net Asset Value
(NAV) per share increased by +18.6% to $1.656 per share.
NZL paid a final net dividend of 1.60cps bringing the total net dividend to 3.61cps for the year ending 30 June
2022. The dividend was paid on 9 September 2022 (record date 2 September 2022).
Our acquisitions in FY22 showed an increase of +26.2% (+$23.5 million) on purchase price. NZL’s original portfolio
(those assets acquired in FY21) increased by +10.3% (+$14.1 million), following on from a +10.8% (+$13.4 million)
increase in FY21.
These figures highlight the excellent job our Manager - New Zealand Rural Land Management - has done for NZL
since our NZX listing on 21 December 2020.
When we launched the IPO of NZL in Q4 2020 many investors approached said we could not do what we were
proposing – purchase quality rural land assets and tenant them at the yields indicated.
Accepting skepticism is always part of any new venture, I am pleased to report to you that as at 30 June 2022
NZL had acquired $264.9 million of high quality rural land in New Zealand amounting to 11,710 hectares with seven
tenants having achieved better than forecast yields and expected returns on capital deployed.
Post balance date, on 21 October 2022, NZL announced it had entered into an agreement to acquire up to 100%
of a forestry estate located in the Manawatu-Whanganui region in the North Island. The cost to acquire 100% of
the asset is approximately $63mln (subject to final costs) with a first year lease payment set at $4.98mln. This
acquisition represents a continuation of NZL’s strategy of broadening its portfolio of high-quality rural land assets
and tenants. There will be a further presentation on this acquisition post this address by Chris Swasbrook.
The outlook for NZL remains very positive for future earnings and value growth. Productive and low carbon
intensity rural land globally is an increasingly scarce resource. I am still surprised foreign investors seem to
understand this better than many domestic investors despite the critical role agriculture plays in our economy.
With this in mind the Board and Manager are now actively looking to expand the foreign investor base to further
facilitate NZL’s growth and capacity to execute on the compelling opportunities that we have in front of the
Company. These opportunities are only enhanced by the current interest rate driven environment.
As we approach our second anniversary of listing on the NZX I am extremely proud of what has been achieved
and I wish to thank all our investors for being supportive of the journey thus far. A little patience goes a long way
in this world and we all believe this will be rewarded in the years ahead as NZL continues to increase its scale and
earnings. History shows, it is also reasonable to expect, as this occurs the discount to NAV closes.
Rob Campbell
Independent Chair
The Blade, Level 4, 12 St Marks Road, Remuera, Auckland, 1050, New Zealand | +64 9 379 6493
www.nzrlc.co.nz

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NEW ZEALAND RURAL LAND COMPANY
www.nzrlc.co.nz
listed on:
Rural Land Co
New Zealand
The Rural Land Investors
8 December 2022
ASM Presentation

2
NEW ZEALAND RURAL LAND COMPANY
1. Chairman’s Introduction
2. Presentation to Shareholders
3. Questions
4. Resolutions
ASM Agenda

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NEW ZEALAND RURAL LAND COMPANY
NZL, via an SPV, will purchase between 52% - 100% of an approximately 2,400ha forestry estate (the Estate) and lease it to New Zealand
Forest Leasing (NZFL).
NZFL will lease and manage the assets for a period of 20 years and pay a CPI inflated annual rental income with additional upside on a three
yearly basis if 50% of the growth in the price of New Zealand Emission Units (NZUs) exceed inflation.
During its 20 year tenancy, NZFL will be responsible for forest management and for implementing active regeneration techniques to
commence the native regeneration process underneath the current pine forest (see page 9 for further details on implementation of native
regeneration).
This transaction presents an excellent opportunity to:
• Diversify into a new rural land subsector;
• Further broaden NZL’s tenant group; and,
• Partner with a high quality operator in an industry that is actively addressing climate change.
The yield of the investment is higher than NZL’s marginal cost of borrowing and thus provides insulation from rising interest rates in the short
to medium term and increases headroom on banking covenants (NZL plans to hedge 100% of this acquisition at the time of settlement to lock
in a spread and increase NZL’s hedging profile).
Forestry Estate Acquisition

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NEW ZEALAND RURAL LAND COMPANY
The Forestry Estate is located in the Manawatū-Whanganui Region in the North Island spread over five sites with a combined area of
c.2,400ha.
The planted area with Carbon Emissions Trading Scheme (ETS) potential is 1,889ha, of this 1,458ha* is currently registered under the ETS. The
remaining 430ha** have been identified as potential ETS areas.
The Forestry Estate consists of mostly mature first rotation Pinus radiata distributed across the five forest blocks all within 45 minutes drive of
Whanganui.
Forestry Estate Overview
The Estate
*The total CAA registered area of the Estate is 1,498.15ha however “windthrow” i.e. trees damaged due to high winds reduces the area from which NZUs can be earned to 1,459.14ha.
**While 430.34ha is potentially eligible for CAA registration in reality it is unlikely that every hectare identified will be able to be registered as a result the Manager has incorporated into its financial modelling the
assumption that only 70% of the potentially eligible area is registered.

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NEW ZEALAND RURAL LAND COMPANY
Forestry Estate Overview (continued)
0
200
400
600
800
1000
1200
Old Crop19941995199619971998199920082015
Total Estate Age Classes
The chart below details the age class of trees within the Estate. Nearly all trees were planted between 1994 and 1996 making them between
26 and 28 years old. These trees are expected to continue sequestering carbon for a number of decades into the future.
The forecast sequestration profile of the Estate is also detailed below. As illustrated the rate at which pine trees sequester carbon increases
rapidly in the first seven years after planting before settling into a largely linear trend until year 70.
Forecast Carbon Sequestration Profile
Year Planted
-
500
1,000
1,500
2,000
2,500
1591317212529333741454953576165697377
Cumulative NZUs per Hectare
Years Since Planting

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NEW ZEALAND RURAL LAND COMPANY
Established in 2010, NZFL owns more than 60,000ha of forests and leases a further 43,000ha. NZFL is one of the 10 largest freehold
landowners in New Zealand with assets of over $3 billion.
NZFL is committed to best practice land management and stewardship. It has built internal resources covering forest management, ETS
management, legal and finance. NZFL actively manages all of its forests and has a particularly keen focus on tree survival rates given the
positive financial benefits active forest management with an ‘every-tree-counts’ approach has on carbon yields versus timber yields not
eventuating until harvest age.
95% of NZFL forests are planted on marginal land with Land Use Classification of 6, 7 or 8*. The Company aims to avoid displacing high
producing pastoral farming. Neighbour relations are a key focus for the land management team and NZFL has a ‘grass roots’ sponsorship
program aimed at assisting local schools, marae, community centres and sports teams.
The founding shareholders of NZFL are New Zealand based and have a shared vision of preserving the planet for future generations. This
means a continued focus on reinvestment and innovation to continuously grow and enhance NZFL’s positive impact on the environment and
solving climate change. The commitment to the environment is further highlighted by their focus on regeneration of indigenous forest across
their properties. Details of native regeneration are further explained on page 9.
Tenant Overview
*Classifications 1 to 4 are considered suitable for multiple uses including arable cropping and dairy, while classes 5 to 8 are only suitable for pastoral grazing or forestry

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NEW ZEALAND RURAL LAND COMPANY
Lease Terms
Lease Term: 20 Years;
Lease Rate: Year 1 payment of NZ$4,976,000;
Rent Reviews: Uncapped, annual CPI adjustments with a three-yearly catch up indexed to 50% of the increase in NZUs over the period
(if greater than CPI);
Other Lease Terms: Triple Net Lease - maintenance of the estate over the lease term is the sole responsibility of the tenant;
The tenant’s maintenance responsibilities include all pest, weed, disease control measures and forest maintenance;
The tenant will receive all NZUs generated by the estate over the term of the lease and have absolute
discretion as to how to use these units; and,
The tenant is responsible for all pest control activities in the forest and has committed to actively encourage and
manage the regeneration of indigenous forest within the Estate.

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NEW ZEALAND RURAL LAND COMPANY
Pinus Radiata Carbon Sequestration Profile
Constant sequestration
from year 50
Following the end of the lease any NZUs earned by the Estate will be available to NZL to sell as it pleases. As with any commodity the future
price of carbon is uncertain. The NZU price forecast used in calculating potential returns has been sourced from a specialist forecaster that
has a dedicated team located in Australia with expertise in this area.
The chart below depicts the relationship between carbon sequestration and the age of a stand of trees across several species.
The characteristic rapid growth and thus sequestration of carbon by pine trees is evident in the solid orange line over the first 50 years. From
year 50 the authors project that pine trees will continue to sequester carbon at a constant rate.
Note that the chart shows a planting regime of 800 stems (trees) per hectare this is rarely practiced in pine forestry. While this might impact
the quantum of carbon sequestered the trend remains the same regardless of stems per hectare (the Estate has a stocking rate of 255 stems
per hectare).

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NEW ZEALAND RURAL LAND COMPANY
NZL’s tenant, NZFL, is focused on afforesting and avoiding deforestation of marginal land in New Zealand. Pinus radiata is used as a nurse
crop to maximise contribution to solving climate change in the near term. Over the longer-term forests are actively managed to regenerate
to indigenous forests to increase biodiversity benefits. NZFL funds significant research and development into regeneration of indigenous
plantations.
Regeneration is a natural process initially utilising Pinus Radiata as a nurse crop for the regeneration of native plants and trees. Radiata has
proven resilient with consistent growth rates in multiple climatic conditions. The nurse crop provides the right environment to actively manage
the regeneration of native forest cover at scale. Despite their size, radiata pine forests develop a diverse understorey of shade-tolerant native
species within a typical production rotation. The older the nurse crop is, the longer the period in which the understorey can develop and
advance. A permanent regenerating native forest is self-sustaining, it is dynamic, resilient and replaces itself over time.
NZFL actively manages its forests to mimic the naturally occurring regeneration process. This allows it to create a natural forest faster than
greenfield planting initiatives. Modelling demonstrates permanent regenerating forestry can remove between five and 10 times more carbon
over 70 years than planting a native forest from scratch.
Site specific forest management plans are designed to maximise the existing natural features of the site, especially utilising existing native
species which are a valuable seed source. Active regeneration techniques include pest control, enabling seed dispersal from native trees on
the estate, planting natives and the opening up of light wells to let the established native seedlings grow through the canopy. As the natives
grow, the number of species increases, attracting more native birds and insects. All site plans take account of regional plans with a particular
focus on erosion and stewardship of waterways.
NZFL intensively manages for pests and predators to ensure high quality forests, working with local councils on predator control programs
with 880 traps deployed and monitored, and eliminating approximately 2,500 pests every month (predominantly goats). This also benefits
neighbouring properties via higher yields whether they are grassland or forest.
Native Regeneration and Pest Control

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NEW ZEALAND RURAL LAND COMPANY
Questions?

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NEW ZEALAND RURAL LAND COMPANY
Resolutions
To consider and, if thought fit, to pass the following ordinary resolutions:
(i) Auditor’s Remuneration: that the Board be authorised to fix the fees and expenses of the Company’s Auditors.
(ii) Approval of Acquisition: That, under Listing Rule 5.1.1(b), NZL undertaking the Acquisition of the Estate and all related transactions to give
effect to the Acquisition on the basis described in this Notice, is approved.

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NEW ZEALAND RURAL LAND COMPANY
New Zealand Rural Land Company
Level 4, 12 St Marks Road
Remuera
Auckland 1050
New Zealand
+64 9 379 6493
info@nzrlc.co.nz
www.nzrlc.co.nz

nzrlc
nzrlc
listed on:
Rural Land Co
New Zealand
The Rural Land Investors