F.I.T. TIMBER GROWTH FUND LTD. A sustainable and socially responsible investment

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1 F.I.T. TIMBER GROWTH FUND LTD. A sustainable and socially responsible investment Q & A Due Diligence

2 Operations Forestry Why have you choosen to invest in Roraima rather than in the south where transport and logistics are better disposable? Why do you grow Acacia rather than Eucalyptus where Brazil has the highest productivity worldwide with mean annual increment of 41 m3/ha/year? Roraima is the youngest state of Brazil and it s an upcoming region. In December 2007 Boa Vista became a free-trade zone and economy is fast growing. Compared to the more developed region in the south, land and labor cost is beneficial. FIT could profit right from start on from the fast growth and development of the state Roraima and its capital Boa Vista. We strictly selected the species according to site (=soil&climate) potential. FIT has carried out a number of species trials, among those species tested was also Eucalyptus. Acacia mangium was the best performing. Acacia has shown a very good survival rate after planting, and it can stand the long dry spells in Roraima (5 months without rain). Besides, Acacia is a well-established species on the high-value timber market and is used for flooring and furniture, Eucalyptus has mainly been planted for the pulp and paper industry and is only entering very slowly the high-value market. Our trees grow presently at around 15 cam per year and hectare. The site potential is estimated to be around 18 cbm/ha/yr. 2

3 Operations Forestry How has demand and pricing for Acacia evolved over the recent years and whats your forecast for the coming years. During the last three to four years the prices for acacia mangium rose by about 15%, parallel to the rising demand for hardwood products. The prices for acacia mangium products are actually between 500 USD/ m3 and 1500 USD/ m3 depending on the degree of processing and quality of the product. Because of its good workability and its attractive teak like looking, Acacia mangium is a good choice for many kind of timber products. Markets for Acacia mangium timber products are actually mainly in the U.S. and in Europe and partly in S.E. Asia specially for FSC certified wood. Future markets are also fast developing countries including Brazil and India. Plantation grown timber in general will have a higher demand in the near future. (Forest plantations produce only 22 % of all lumber, pulp, and other industrial wood; worldwide stricter laws for natural forest protection will change this percentages dramatically in favour of forest plantations over the next years) 3

4 Operations Forestry Are there any regulatory or political concerns that might affect your operations? The fact that FIT was the first organization that brought sustainability and process standards like FSC to Roraima and that FIT is the largest employer in the state, gives us a very good standing politically. As we are in Roraima more than 10 years, relations and connections to government are very well established. What differents you from your peers? Compared to other investment opportunities, FIT offers already a low-risk and diversified investment approach that is ready for harvesting timber. Capturing the whole value chain for timber and residual material in one investment is unique. Moreover, the combination of traditional methods (sawmilling) with innovative technology (biomass to liquid (BTL)) for e.g. diesel production is outstanding. 4

5 Operations Forestry What does FSC mean? What does Sustainability mean for you? FSC, or Forest Stewardship Council, is a non-profit organization that sets certain high standards to make sure that forestry is practiced in an environmentally responsible and socially beneficial manner. If a product (furniture, flooring, tiles or paper) is labeled as "FSC Certified," it means that the wood used in the piece and the manufacturer that made it met the requirements of the Forest Stewardship Council. Sustainability is a principle of life and not a popular term newly discovered. The term evolved in forestry in Europe some 200 years ago. Earlier, it meant only the production of timber in perpetuity. Since the earth summit in Rio in 1992 the term encompasses three pillars, i.e. - social aspects - economic aspects - environmental aspects For FIT sustainability means all three aspects, whereby economic aspects are a) maintenance of present values (NAV) and b) continuous positive future cash flows (for investors) 5

6 Operations Forestry Are monocultures not bad for the Environment? FIT's plantation forest areas (30'000 ha) are embedded in a total area of ca. 40'000 ha of savanna land and 15'000 natural forest land. Insofar the "monocultures" are small patches in natural environment. We constantly monitor several environmental values, such as ground water levels, water quality of streams and rivers and biodiversity. FIT's plantations do not show adverse environmental effects. In contrary, soil fertility increases through fixation of nitrogen, biodiversity stabilizes through providing shelter for endangered species such as the giant ant eater and plantations fix tremendous amounts of carbon to stabilize global climate. What are the risks associated with your business plan? Under environmental conditions prevailing in Roraima, fire poses the biggest risk for FIT's plantations. However, through appropriate management (forest aisle, fire fight team) we "lost" far below 1% of plantation are in 12 years of operation. Other risks are biotic risks, e.g. fungi, moths, leave cutting ants, beetles and other. Through our intense monitoring all these risks were under control at all times. 6

7 Operations The Fund Fund Essentials Fund Assets Performance Fund type open investment fund / reinvested Date of approval June 13, 2001 (in St. Vincent) Issue date September 1, 2001 Buy-back of units Earliest 2014 Currency / minimum subscription USD 30'000 Denomination 1 Share Swiss security number ISIN number VCP4170W1089 Payment / settlement agent SIX SIS AG, 4600 Olten Price publication Bloomberg: TIMBERF EK (Equity-Taste) Telekurs: Internet: USD 305 million since inception 5.45% p.a. compounded 69.30% see Performance report 7

8 Operations The Fund Terms & Conditions: How do you calculate NAV? Why do you report in USD instead of Brazilian Real? How many shareolders are invested in the fund and what are the proportions of the 3 largest shareholders? The fund opens in 2014, how do you adress redemptions? Fund Costs: 1,5% MGM plus admin 200'000 flat. Fund Costs are capped by 2% TER. The NAV calculation is based on a DCF Model. The model was built by Fahrländer Partner AG (a specialist in Land and Real Estate Valuation) and confirmed by BDO, Stoy Hayward LLP, Ldn. Although the USDBRL had wide swings in the past it has hardly moved since we started our operations (ca. 1.75). Revenues for the fund will be primarily in USD. Currently about 60 diversified investors are involved in the Fund. The biggest investor holds about USD 25 Mio of shares. The second and third are holding about USD 15 Mio each. The five (5) biggest shareholders are holding not more than 20% in total and no investor holds more than 10%. During the recent years we could maintain secondary market liquidity of the fund shares of ca. 5% - 10% of the fund net asset value. Starting 2014 we will allocate 50% of the free cash flow to funds shareholders. Fund shares redemptions will be accepted on a quarterly basis. 8

9 F.I.T. Timber Growth Fund Ltd. Business Plan - Projections

10 OP Projections Summary Projected Revenues All figures in USD Mio Timber products Energy Biofuel Charcoal Carbon Credits RF Certificates TOTAL % Revenue Share Timber products Energy Biofuel Charcoal Carbon Credits RF Certificates TOTAL

11 Key Financial Projections Opex USD 4'974'412 11'272'308 25'113'987 27'681'078 34'981'190 37'847'804 EBITDA USD 4'117'353 13'152'915 12'477'008 15'262'604 42'155'284 45'956'370 Interest USD 0 660'296 3'258'193 2'881'913 2'399'437 2'548'786 Taxes USD 0 0 1'053'164 1'725'927 7'925'615 12'576'918 Capex USD 3'130'349 5'431'556 6'799'984 7'404'843 8'541'655 8'746'720 Operating Cash Flow USD 987'004 7'061'063 1'365'667 3'249'921 23'288'577 22'083'946 11

12 Business Plan Outlook F.I.T Timber Growth Fund Ltd - Operating Plan Projections (All financials are in US Dollars) Plantation Financials Revenues USD 9'091'765 24'425'223 37'590'995 42'943'682 77'136'475 83'804'174 Timber USD 1'694'118 7'977'376 16'772'943 17'192'267 45'896'540 51'748'349 Energy USD 0 4'177'983 5'241'874 5'320'503 5'865'190 6'106'745 Diesel USD '340'876 18'143'591 22'534'180 23'554'021 Charcoal USD 614' ' ' ' ' '830 Biomass USD Carbon Credits USD 5'460'000 10'140' '000 0 RF Credits USD 1'323'529 1'391'403 1'462'757 1'499'326 1'536'809 1'575'229 Opex USD 4'974'412 11'272'308 25'113'987 27'681'078 34'981'190 37'847'804 EBITDA USD 4'117'353 13'152'915 12'477'008 15'262'604 42'155'284 45'956'370 Interest USD 0 660'296 3'258'193 2'881'913 2'399'437 2'548'786 Taxes USD 0 0 1'053'164 1'725'927 7'925'615 12'576'918 Capex USD 3'130'349 5'431'556 6'799'984 7'404'843 8'541'655 8'746'720 Operating Cash Flow USD 987'004 7'061'063 1'365'667 3'249'921 23'288'577 22'083'946 Note: the above figures are based on best current working estimates of management and are subject to ongoing, regular update and review 12

13 Business Plan Outlook Cash Flow (All financials are in US Dollars) Fund Cash Flow Fund Cash Position - BOP USD 15'000'000 11'703'671 15'064'734 15'230'401 9'780'322 24'368'899 Operating Cash Flow USD 987'004 7'061'063 1'365'667 3'249'921 23'288'577 22'083'946 Financing Costs USD (1'283'333) (700'000) (700'000) (700'000) (700'000) (700'000) Fund Costs USD (8'000'000) (8'000'000) (8'000'000) (8'000'000) (8'000'000) (16'512'011) Administration Costs USD (6'000'000) (6'000'000) (6'000'000) (6'000'000) (6'000'000) (14'512'011) Support Costs USD (2'000'000) (2'000'000) (2'000'000) (2'000'000) (2'000'000) (2'000'000) Fund Cash Inflows USD 5'000'000 5'000'000 7'500' Regular new subscriptions (indicative) USD 5'000'000 5'000'000 7'500' Additional subscriptions required USD Fund Net Cash Available USD 11'703'671 15'064'734 15'230'401 9'780'322 24'368'899 29'240'834 (cummulative) Fund Cash Position - EOP USD 11'703'671 15'064'734 15'230'401 9'780'322 24'368'899 29'240'834 Note: the above figures are based on best current working estimates of management and are subject to ongoing, regular update and review 13

14 Fund Investor Cash Allocation 14

15 F.I.T Worst Case Scenario Sale & Exit 2014/5 Estimated Value of trees USD 170 Million as standing biomass Estimated Value of land USD 30 Million Total Value USD 200 Million 15

16 LT Revenue Compsition 16

17 LT Cash Flow Projections 17

18 LT Operation Projections (All financials are in US Dollars) Plantation Operations Total harvested m3 36' ' ' ' ' ' ' ' ' ' ' ' ' '000 Total finished timber products output m3 4'800 21'500 43'000 43'000 27'720 30'492 33'541 36'895 40'585 50'400 50'400 50'400 50'400 50'400 Total energy output MWh 0 48'733 58'733 58'733 63'789 65'435 67'245 69'236 71'427 67'253 67'253 67'253 67'253 67'253 Total diesel output litres '815'000 18'420'000 22'428'900 22'984'290 23'595'219 24'267'241 25'006'465 23'598'000 23'598'000 23'598'000 23'598'000 23'598'000 Total charcoal output tonnes 870 1'000 1'000 1'000 1'000 1'000 1'000 1'000 1'000 1'000 1'000 1'000 1'000 1'000 Plantation Financials Revenues USD 9'091'765 24'425'223 37'590'995 42'943'682 77'136'475 83'804'174 91'830' '823' '904' '628' '923' '040' '232' '499'805 Timber USD 1'694'118 7'977'376 16'772'943 17'192'267 45'896'540 51'748'349 58'346'263 65'785'412 74'173'052 94'414'041 96'774'392 99'193' '673' '215'435 Energy USD 0 4'177'983 5'241'874 5'320'503 5'865'190 6'106'745 6'369'814 6'656'805 6'970'404 6'661'593 6'761'517 6'862'939 6'965'883 7'070'372 Diesel USD '340'876 18'143'591 22'534'180 23'554'021 24'663'695 25'873'472 27'194'857 26'176'396 26'699'924 27'233'922 27'778'601 28'334'173 Charcoal USD 614' ' ' ' ' ' ' ' ' ' ' ' ' '562 Biomass USD Carbon Credits USD 5'460'000 10'140' ' ' RF Credits USD 1'323'529 1'391'403 1'462'757 1'499'326 1'536'809 1'575'229 1'614'610 1'654'975 1'696'349 1'738'758 1'782'227 1'826'783 1'872'452 1'919'264 Opex USD 4'974'412 11'272'308 25'113'987 27'681'078 34'981'190 37'847'804 41'042'612 44'608'617 48'594'705 56'097'552 58'285'170 60'560'409 62'926'851 65'388'228 EBITDA USD 4'117'353 13'152'915 12'477'008 15'262'604 42'155'284 45'956'370 50'787'998 56'214'998 62'309'968 74'530'646 74'638'048 75'480'248 76'305'408 77'111'577 Interest USD 0 660'296 3'258'193 2'881'913 2'399'437 2'548'786 2'082'386 1'614'524 1'215'976 1'154'036 1'396'271 1'093' ' '414 Taxes USD 0 0 1'053'164 1'725'927 7'925'615 12'576'918 14'218'433 16'011'763 17'976'229 21'707'353 21'888'907 22'270'135 22'605'736 22'943'379 Capex USD 3'130'349 5'431'556 6'799'984 7'404'843 8'541'655 8'746'720 8'959'187 9'158'989 10'978'211 8'445'489 5'047'172 4'111'567 3'576'204 3'445'599 Operating Cash Flow USD 987'004 7'061'063 1'365'667 3'249'921 23'288'577 22'083'946 25'527'992 29'429'722 32'139'552 43'223'768 46'305'697 48'004'912 49'221'426 50'026'186 Fund Cash Flow Fund Cash Position - BOP USD 15'000'000 11'703'671 15'064'734 15'230'401 9'780'322 24'368'899 29'240'834 36'692'412 47'172'404 59'488'343 81'990' '816' '577' '756'975 Operating Cash Flow USD 987'004 7'061'063 1'365'667 3'249'921 23'288'577 22'083'946 25'527'992 29'429'722 32'139'552 43'223'768 46'305'697 48'004'912 49'221'426 50'026'186 Financing Costs USD (1'283'333) (700'000) (700'000) (700'000) (700'000) (700'000) (700'000) (700'000) (700'000) (700'000) (700'000) (700'000) (700'000) (700'000) Fund Costs USD (8'000'000) (8'000'000) (8'000'000) (8'000'000) (8'000'000) (16'512'011) (17'376'413) (18'249'731) (19'123'612) (20'021'946) (20'779'446) (21'543'482) (22'342'297) (23'188'676) Administration Costs USD (6'000'000) (6'000'000) (6'000'000) (6'000'000) (6'000'000) (14'512'011) (15'376'413) (16'249'731) (17'123'612) (18'021'946) (18'779'446) (19'543'482) (20'342'297) (21'188'676) Support Costs USD (2'000'000) (2'000'000) (2'000'000) (2'000'000) (2'000'000) (2'000'000) (2'000'000) (2'000'000) (2'000'000) (2'000'000) (2'000'000) (2'000'000) (2'000'000) (2'000'000) Fund Cash Inflows USD 5'000'000 5'000'000 7'500' Regular new subscriptions (indicative) USD 5'000'000 5'000'000 7'500' Additional subscriptions required USD Fund Net Cash Available USD 11'703'671 15'064'734 15'230'401 9'780'322 24'368'899 29'240'834 36'692'412 47'172'404 59'488'343 81'990' '816' '577' '756' '894'485 Fund Returns to Shareholders USD Fund Cash Position - EOP USD 11'703'671 15'064'734 15'230'401 9'780'322 24'368'899 29'240'834 36'692'412 47'172'404 59'488'343 81'990' '816' '577' '756' '894'485 18

19 F.I.T. Timber Growth Fund Ltd. Performance Analysis

20 Performance Analysis Dec Dec Dec Dec Dec Dec Sep Performance Summary - F.I.T. Timber Growth Fund Last 1 Month Last 3 Months Last 1 Year (annual) Last 3 Years Last 5 Years Y-T-D (annual) F.I.T. Timber Growth Fund SP500 USA SP Timber & Forestry

21 Performance Analysis January September 2011 Summary Statistics - F.I.T. Timber Growth Fun 1/2006-9/2011 N Periods Geometric Mean (%) Arithmetic Mean (%) Standard Deviation Highest Return (%) Lowest Return (%) Ending Index Value F.I.T. Timber Growth Fund SP500 USA SP Timber & Forestry

22 Tracking Dec Dec Dec Dec Dec Sep Januray September 2011 Dec Dec Dec Dec Dec Sep Correlations - F.I.T. Timber Growth Fund N Periods F.I.T. Timber Growth Fund SP500 USA SP Timber & Forestry F.I.T. Timber Growth Fund SP500 USA SP Timber & Forestry

23 Wealth Expectations Dec Dec Dec Dec Oct Wealth Percentiles Expectations Okt 12 Okt 14 Okt 16 Okt 21 Okt 25 95th Percentile Expected Value th Percentile

24 Disclaimer The relevant documents of F.I.T. Timber Growth Fund Ltd. have not been approved by the Swiss Financial Market Supervisory Authority (FINMASA). Therefore F.I.T. Timber Growth Fund Ltd. may not be publicly distributed from Switzerland. F.I.T. Timber Growth Fund Ltd. may only be offered to qualified investors according to the Federal Act on Collective Investment Schemes («CISA», article 10, paragraph 3.) Therefore the presentation may not be handed out and the F.I.T. Timber Growth Fund Ltd. may not be mentioned to persons who are not qualified investors according to CISA. This documentation contains certain forward-looking statements that, amongst others, relate to predictions of future events, price developments, trends, growth forecasts, operational measures or targets. Forward-looking statements convey opinions derived from a current viewpoint, based on careful analysis, while reverting to developments in the foreseeable and more distant future, thus entailing known and unknown risks as well as comprising contingencies. Hence, they can be affected by a multitude of factors beyond our influence. Such future-oriented statements should therefore be received with due caution. Future developments could diverge from envisaged results and targets (or from previous results) outlined explicitly of implicitly in these forward-looking statements. Factors such as future growth of plantations, future timber prices, commercialization of harvested and processed timber, the general economic environment and competitive factors, developments in targeted sales markets, changing legislative conditions, modified guidelines by supervisory authorities, and so on, can immediately influence the accomplishment of planned targets. F.I.T. Timber Growth Fund Ltd. is not obliged to update or revise these forward-looking statements, in order to consider new information, emerging events or circumstances. F.I.T. Timber Growth Fund Ltd. can thus assume neither responsibility nor liability for such forward-looking statements. We would furthermore remark that previous performances provide no indications of future results. The information in this presentation is summary and for information purposes only. The presentation does neither constitute an investment advice, nor an offer or an offer to purchase units of the FIT Timber Growth Fund Ltd. 24