Kangaroo Island Plantation Timbers : Market Update

KPT Market Update

28 March 2017

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Agenda

□ About KPT and KI Forestry

• Strategic acquisition

• Export infrastructure

• Business metrics

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The KPT opportunity

• Transformational acquisition from small timber grower, to large, low cost timber grower and exporter

• Post transaction, KPT will own standing timber (in which over $200m has been invested), growing at above average rates due to KI ideal growing conditions

• Proposed deep water wharf (Smith Bay, Kangaroo Island)to be assessed under Major Projects Pathway

• Bank funding (CBA) agreed for 100% of wharf and ~50% of acquisition. Assessing debt terms sheets and other options to fully fund acquisition

• MOU for exclusive off-take agreement secured (Mitsui & Co Ltd)

• Timber prices are firm, with favourable supply demand imbalance developing

• Timber is an uncorrelated long-term inflation hedge with a favourable risk-return profile.1 Globally, US$100 billion invested in timberland1, dominated by institutions

• KPT is the only ASX listed traditional timberland company2

1. New Forests Timberland Investment Outlook 2015-2019

2. Excluding exotic species 3

   KPT corporate information

   • 25.0m shares, fully diluted

     • 24.1m on issue

     • 0.9m board rights, subject to price, liquidity targets

   • Approx. $60m market capitalisation

   • No debt, $5m cash, no MIS, 100% ownership of land, timber and wharf site

     3.00

     2.50

     Share price ($)

     2.00

     1.50

     Share price performance

   • Substantial holders

     • 32.7% Samuel Terry Asset Management

     • 25.5% Directors

     • 14.2% Supervised Investments

   • Directors recently bought new shares at

$2.50

1.00

0.50

0.00

Mar-14 Sep-14 Mar-15 Sep-15 Mar-16 Sep-16 Mar-1

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