WORLD FORESTRY CONGRESS FAO INVESTMENT AND FINANCING FORUM Roberto S. Waack roberto@amatabrasil.com.br

1. WORLD FORESTRY CONGRESS FAO INVESTMENT AND FINANCING FORUM Roberto S. Waack roberto@amatabrasil.com.br

2. FORESTS MARKET Planted Forests Solid Wood Fibers Natural Forests Energy Other: Pharmaceutical Cosmetics Food Industry Carbon Credits OUR BUSINESS OUR BUSINESS M³ CERTIFIED WOOD BRA-034 US$ 25 up to US$ 25,000 / m³ Other: Non-Timber Products Environmental Services

3. CONTINUUM PRINCIPLE Mechanically Processed Wood Environmental Services Non Timber Fibers Energy Solid Wood PERMANENT PRESERVATION Increasing environmental management needs Increasing conservation value LOW IMPACT MANAGEMENT NON USABLE AREAS HIGH IMPACT MANAGEMENT Source: FSC PWG 2006, adapted by R. Waack

4. VALUE CHAIN

5. FORESTS Planted Forests Natural Forests CLASSIC INVESTORS IN FORESTRY Strategic Institutional Development Banks Hedge Funds Private Equity TIMOs Family Offices Individuals

6. FORESTS Planted Forests Natural Forests RECENT INVESTORS IN FORESTRY Strategic Institutional 1 Development Banks Hedge Funds Private Equity 2 3 TIMOs Family Offices Individuals 1- If very big, 2 – speculative, 3 – rarely

7. FORESTS Planted Forests Natural Forests WHAT WE SEE NEXT INVESTORS IN FORESTRY Strategic Institutional Development Banks Hedge Funds Private Equity TIMOs Family Offices Individuals

8. RISK & RETURN + Adding value: ES, NTP, biomass RETURN - + - RISK ES – Environmental services, NTP – Non timber products Other Plantations IE: Teak, Paricá, Guanandi, etc Traditional Plantation IE: Eucalyptus, Pines, Acacia Natural Tropical Forest Management Continuum Principle

9. RISK & RETURN Demand for leadership + Adding value: ES, NTP, biomass • Bureaucratic decisions • Low risk tolerance • Comfort zone of analysts • Mainstream economy RETURN - + - RISK ES – Environmental services, NTP – Non timber products Other Plantations IE: Teak, Paricá, Guanandi, etc Traditional Plantation IE: Eucalyptus, Pines, Acacia Natural Tropical Forest Management Continuum Principle

10. RISK & RETURN Demand for leadership + Adding value: ES, NTP, biomass • Reputation • Environmental liabilities • New green economy • High volatility RETURN - + - RISK ES – Environmental services, NTP – Non timber products Other Plantations IE: Teak, Paricá, Guanandi, etc Traditional Plantation IE: Eucalyptus, Pines, Acacia Natural Tropical Forest Management Continuum Principle

11. RISK & RETURN Demand for leadership + Adding value: ES, NTP, biomass • Leadership • Changing agents • Entrepreneurship • New green deal economy • Win analysts blockage • ???Role of development banks??? RETURN - + - RISK ES – Environmental services, NTP – Non timber products Other Plantations IE: Teak, Paricá, Guanandi, etc Traditional Plantation IE: Eucalyptus, Pines, Acacia Natural Tropical Forest Management Continuum Principle

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