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Investor Presentaiton

GBM October 12, 2021 PROTEAK'S TEAK Proteak wholly owns 7,137 ha. (GBMe) of teak in Mexico. Its plantations go through 18-20- year rotation periods (i.e., the time from sowing to harvesting) depending on the type of seeds used, the quality of the soil, etc. Harvests are supposed to improve over time, hand in hand with the increased knowledge and better practices adopted by Proteak. 57% of wholly-owned hectares are five to ten years old. The company's first farms were located in the Mexican state of Nayarit. By the time of its IPO in 2010, management realized that the soil in the state of Tabasco had better conditions. Moreover, around this time, the company started to use clonal seeds. With that in mind, we expect higher prices per tree starting in 2027 when the Tabasco plantations are harvested. Proteak also owns 1,160 ha. through a JV ("Tacotalpa"), which has been described to us as "the crown jewel" of the company. High-quality EBITDA = strong FCF generation. In the 2013-'15 period, Proteak generated average annual revenues of P$125 million and an EBITDA margin of 30% through the sale of logs from plantations acquired that have reached maturity. By then, EBIT represented ca. 95% of the segment's EBITDA, which proves the business' strong FCF generation capacity. Wholly-Owned Farms 5-10 years old 11-15 years old >15 years old Clonal Seeds Non-Clonal Seeds 57% 37% 5.6% 100% 50% 50% Year Hectares planted 2002 2003 0000000 182 0000 102 200454 000 65 2005 2006 2007 2008 2009 2010 2011 2012 A 0 F F C C F F 515 513 C ♡ 700 F Expected Final Harvest 2022 2023 2024 2025 2026 2027 2028 948 2029 2030 1,000 2031 1,200 2030 2013 909 Proteak's own teak is just entering its harvesting period. Previously, the company acquired mature teak plantations in Colombia and Costa Rica that allowed it to establish relationships with brokers and teak buyers in Asia. Although the relative quality of Proteak's harvests is yet to be defined by the market, we find reasons to be optimistic: . • Cost structure: The largest outflows already occurred. Land acquisition and maintenance during the first five years of a tree's life represent the largest outlays per hectare. All of Proteak's plantations are above this age and some are close to reaching harvesting periods, which will transform the Teak unit into a cash-generating business. FSC. Proteak currently has 1,716 verified hectares and is expected to reach 4,488 by year's end. The company grows all its plantations based on FSC guidelines and will audit the rest of the fields as they mature. 2014 2015* F 950 1160 No teak ha. has been planted since 2015 as management has focused its efforts on the MDF unit. 100% Owned 7,137ha Tacotalpa JV 1,160ha Assumes an 18 year rotations period for clonal seed ha and 20-year for non-clonal Source: GBM Research based on annual reports Total 8,297ha 2031 2032 2033 TEAK: AFTER ALL, MONEY DOES GROW ON TREES. | 15
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