CARBON CONSCIOUS LTD (CCF) : COMPANY UPDATE, MAY 2012
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CARBON CONSCIOUS LTD (CCF) : COMPANY UPDATE, MAY 2012CARBON CONSCIOUS LTD (CCF) : COMPANY UPDATE, MAY 2012
• Carbon Conscious – Australasia’s leading developer of carbon forestry projects for Australian companies to offset their carbon emissions
• Provides the most attractive solution for major emitters at well under $23/tonne commencement price
• Contractually plants native trees on poor agricultural land for bio sequestration
• Strong track record having secured major transactions with Origin Energy & BP.
Business model
CARBON CONSCIOUS LTD (CCF) : COMPANY UPDATE, MAY 2012CARBON CONSCIOUS LTD (CCF) : COMPANY UPDATE, MAY 2012
Strong growth
CARBON CONSCIOUS LTD (CCF) : COMPANY UPDATE, MAY 2012CARBON CONSCIOUS LTD (CCF) : COMPANY UPDATE, MAY 2012
# Targeted Planted Hectares * Planting Underway
CARBON CONSCIOUS LTD (CCF) : COMPANY UPDATE, MAY 2012CARBON CONSCIOUS LTD (CCF) : COMPANY UPDATE, MAY 2012
Size of Australian Carbon Market
Demand
346 Mt PA by 2020
Demand
346 Mt PA by 2020
CCF Supply 4 Mt PA
Other Forestry 11 Mt PA
Earnings guidance
Forecast profits based upon plantings completed in year
FY 2012 2013 Target#
2014 Target#
Planted hectares 10,000 20,000 30,000
Revenue $16 M $43 M $64 M
EBITDA $4.6 M $22 M $34 M
NPAT $3.5 M $14 M $23 M
Shares on Issue 79 M 79 M 79 M
Basic EPS 4c 16c 26c
Diluted EPS^ 3.6c 15c 24c
CARBON CONSCIOUS LTD (CCF) : COMPANY UPDATE, MAY 2012CARBON CONSCIOUS LTD (CCF) : COMPANY UPDATE, MAY 2012
• #Projections assume additional contracts are executed at or about the approximate pricing levels of existing contracts. Costs, fees and other expenses related to the business remain within budget expectations.• ^Based on fully diluted shares + fully exercised options.
• Clean Energy Act 2011 (Carbon Tax) and Carbon Farming Initiative (CFI) are now law
Increased certainty
CARBON CONSCIOUS LTD (CCF) : COMPANY UPDATE, MAY 2012CARBON CONSCIOUS LTD (CCF) : COMPANY UPDATE, MAY 2012
• Origin has exercised its 2012 planting options. $163 M remaining in options.
• 10,000 hectares of planting in 2012 planting season (5x increase on 2011)
• New Zealand plantings continuing
2009Executed both major CPRS carbon forest sink trades (Origin Energy & BP Singapore)
2010Australia’s first international carbon trade(Carbon Conscious Ltd – Perenia)
Executed Australia’s first & only senior debt facility for carbon forestry with CBA
2011Executed Australia’s first carbon trade post the Clean Energy Act (Origin Energy)
First major carbon forest sink transaction in NZ with a major Australasian energy company
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CARBON CONSCIOUS LTD (CCF) : COMPANY UPDATE, MAY 2012CARBON CONSCIOUS LTD (CCF) : COMPANY UPDATE, MAY 2012
Industry leading
Carbon Conscious continues to lead the industry
Value proposition
CARBON CONSCIOUS LTD (CCF) : COMPANY UPDATE, MAY 2012CARBON CONSCIOUS LTD (CCF) : COMPANY UPDATE, MAY 2012
• $20 M – NPV of 15 year fee revenue
• $21 M – NPV of 15-30 carbon
• Value of NZ timber or 20+carbon is significant
• Free option on Mallee biomass
• Profitable company in new andemerging industry
• Unprecedented deal size potential ($2 billion) to substantiate forecasts
• Demand seriously outstrips supply
• CCF is ideally positioned – substantial growth opportunities
• Secure revenue worth $43M over the next 15 years
• Significant re-rating is coming
Understanding the opportunity
CARBON CONSCIOUS LTD (CCF) : COMPANY UPDATE, MAY 2012CARBON CONSCIOUS LTD (CCF) : COMPANY UPDATE, MAY 2012
Carbon Conscious at a glance
ASX Code CCF
Issued Capital FPO Shares 79.3 M Unlisted Options 9.6 M Market Cap $13 MShare price (@ 28/5/12) $0.16
Tightly held stock
CARBON CONSCIOUS LTD (CCF) : COMPANY UPDATE, MAY 2012CARBON CONSCIOUS LTD (CCF) : COMPANY UPDATE, MAY 2012
Major Shareholders
Broadacre Asset Mgt 12 %Stoney Pastoral Co 7 %Yall Super 3 %
Top 50 Holds 73 %Top 100 Holds 84 %
Our expertise
Management Team:
Peter BalsariniExecutive Director, Chief Executive Officer
Stephen BodekerChief Financial Officer
Daniel StevensDirector, Business Development
David GroomGeneral Manager, Operations
Jeff DouglasLand Manager
Ric CollinsDirector, Carbon Estates
CARBON CONSCIOUS LTD (CCF) : COMPANY UPDATE, MAY 2012CARBON CONSCIOUS LTD (CCF) : COMPANY UPDATE, MAY 2012
Board of Directors:
Stephen LoweExecutive Chairman
Trevor StoneyNon Executive Director
Kent HunterNon Executive Director
Andrew McBainNon Executive Director