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Nov 2015 – Strategic Case Study

Wodd

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Wodd and Forestry Management

4

Wodd – Company History

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Founded by a group of wealthy individuals.

A large area of forest was sold to these

individuals.

Wodd was formed when they established

a company to undertake the purchase.

Timeline

1983

2002

2015

Over time, the company grew and the

original founders sold their shares

Wodd was quoted since 2002

Marland

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A European

Country

Wodd is based in

Marland

The currency of Marland is M$

M$

Operations of Wodd

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Forestry Management

Harvesting Timber

Project Work

Own forests and of clients’

In own forests and clients’

on behalf of the Forestry

Authority of Marland

Creating amenity woodlands &

forests

making picnic areas, footpaths & cycle paths in existing forests

for public leisure

Provides Advise on Taxation &

Grant Applications

Harvesting & Replanting trees

Adds value through

participation in Associated Industries

such as the Manufacture of

Paper

accredited by FSCM

Grants

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Grants Grants

Available for Available for

Planting Forests Planting Forests

Fencing Forests Fencing Forests

Awarded by Awarded by

The Forestry Authority of

Marland

The Forestry Authority of

Marland

The Government The Government

Company Situation in Last Year (2014)

The company situation in the last year (2014): Extracted from the Chairman’s Statement

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Results

• Focused on stabilising its results

• As faced number of difficult years during recession

Long term growth

• Focuses on achieving long-term stable returns from activities

• Steadily improving key areas to build a strong future.

Markets

• Continued to strengthen its position in the markets and regions where it operates

Wodd’s commitment to Sustainability

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Wodd’s commitment

to sustainability

Best practice forest

management Commitment to

stakeholders

FSCM Certification

Renewable energy

Leading employment

practices

Biodiversity

Transparent governance

Carbon neutral

Social Responsibility

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Sustainability Sustainability

• is a key factor in all investment decisions.

We aim to: We aim to:

• manage our forests to the Highest standards

Our expectation is that: Our expectation is that:

• Wodd will be a net planter of trees, with the number of living trees increasing over time in all of our forests

Strategy & Objectives

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Long-term Strategy

Long-term Strategy

1. Provide stable, long-term returns to our investors

2. Be the preferred supplier of raw wood-based materials to a

broad customer base

3. Be the leading player in the forest industry regarding

environmental and social conduct

4. Expand existing and develop new large-scale projects

5. Seek new ways of working to improve the sustainability of

forests in the future

Code of Conduct

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• We work with all of our stakeholders, ensuring woodlands and forests meet the needs of present and future society.

Stakeholders

• We value our colleagues and our stakeholders, valuing diversity and treating everyone with consideration.

Respect

• We act with integrity and objectivity to achieve high standards of health and safety, quality and sustainability in everything we do.

Professional behaviour

Foreign Exchange Risks

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How? How?

• Fluctuation in foreign exchange rates

• Wodd is exposed to foreign exchange risk

Why? Why?

• Pulpwood is priced in USD which can be volatile against the M$

Actions to mitigate

Actions to mitigate

• Can utilise financial instruments to hedge against adverse currency movements

Weakness Weakness

• No guarantee that it will be possible to hedge against a particular change at an acceptable price, or that any attempt to hedge would be successful.

Foreign Exchange Risks

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WODD - Profitability Ratios “e”

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

Gross Profit Margin Operating ProfitMargin

Net Profit Margin

2015 69.0% 48.1% 42.1%

2014 73.8% 53.4% 48.4%

69.0%

48.1% 42.1%

73.8%

53.4% 48.4%

Profitability Ratios

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WODD - Gearing Ratios “e”

0.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

Tim

es

Interest Cover

2015

2014

18%

18%

18%

18%

18%

19%

19%

19%

19%

19%

2015 2014

19%

18%

Gearing Ratios

Debt to Equity

.

The end.

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