Investor Presentaiton
October 12, 2021
THOUGHTS ON ESG
• Proteak's sustainable approach has been verified by FSC, the world's leading forest certification NGO.
• The company's relationship with international development funds also validates this approach.
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Expected carbon credit sales of US$2.4 million annually for the coming years would add P$0.9 to our price target.
Local Communities
⚫ Fair Employer program (Empleador Justo):
By YE18, Proteak had 652 employees from the local
communities where its plantations are.
Employees are provided with social security, private transport,
and financial inclusion schemes.
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Farmers program (Pequeños Productores).
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This program covers a total of 899 ha.
Local mom & pop plantations (<100 ha.) receive clonal seeds
and help with Proteak's harvesting process.
The state of Tabasco and CONAFOR provide subsidies.
Proteak has a contract signed with these producers to
purchase their wood.
Stakeholders
Groups of interest and government entities
⚫ Carbon credits: Proteak has sold carbon credits worth 890,000
tons of carbon dioxide (tCO2) and plans to issue an average of
368,000 per year in the 2022-2032 period at US$6.5 tC02.
This would add P$0.85 per share to our YE22 price target.
⚫ FSC:
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per
The Teak unit has had 1,716 ha. verified (21% of total) and will
have the balance verified as plantations mature. Meanwhile,
all Proteak's farms are brought up following FSC guidelines.
MDF unit: Entirely certified.
• UN Global Compact: Proteak has been a participant since 2014.
The company submits annual reports addressing how it tackles
the UN's Sustainable Development Goals (SDGs).
⚫ National Forestry Commission (CONAFOR): Proteak has received
subsidies from this public entity, as its forestry practices comply
with CONAFOR's requirements.
Partners and Creditors
⚫ FINNFUND (11.2% stake in MDF unit)
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Finnish Fund for International Cooperation
GBM
Publicly funded development financier and impact investor
Current investments and commitments: £800 million
Since 2014, it holds an 11.2% stake in Pro Eucalipto Holding,
owner of the MDF business.
• AKA Commertz Bank (P$1.3 billion loan to MDF unit)
European export and trade bank that's based in Frankfurt,
Germany.
Total loan portfolio of EUR 5.4 billion (US$6.1 billion)
• IFC and Proparco (P$616 million in loans to Proteak)
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IFC: Development banking institution focused on fostering the
growth of the private sector in emerging markets. Member of
the World Bank Group. US$22 billion in long-term financing
commitments at the end of 2020.
IFC's Environmental and Social Performance Standards serve
as an international benchmark for identifying and managing
environmental and social risks and has been adopted by many
organizations, according to FIRST for Sustainability.
Proparco: Part of AFD, a publicly funded financial institution
in France. It has 40 years of experience in promoting ESG
development in emerging markets.
з
FSC
finnfund
ака
IFC
EUROPEAN
EXPORT TRADE
BANK
International
Finance Corporation
WORLD BANK GROUP
UN GLOBAL
COMPACT
PROPARCO
GROUPE AGENCE FRANÇAISE DE DÉVELOPPEMENT
CONAFOR
COMISIÓN NACIONAL FORESTAL
TEAK: AFTER ALL, MONEY DOES GROW ON TREES. | 24View entire presentation