XXXX JOINTLY OWNED FOREST

1. XXXXJOINTLY OWNED FOREST . MetsäPremium Ltd Photos by RiikkaJauhiainen The Project for Expanding and Developing Jointly Owned Forests

2. Contents • Jointly owned forests in Finland • Administration of a jointly owned forest • Operation of a jointly owned forest • Partnership in a jointly owned forest XXXX Jointly Owned Forest Address Contact person and telephone number E-mail address Website address MetsäPremium Ltd Photos by RiikkaJauhiainen The Project for Expanding and Developing Jointly Owned Forests

3. 1 Jointly owned forests in Finland • A jointly owned forest (JOF) is an area belonging to several real estates jointly. • These privately owned land and water areas are managed by the partnership. • The shareholders of a JOF are the owners of shareholding real estates. • A JOF is primarily intended to be used for practicing sustainable forestry for the benefit of shareholders.

4. 1.1 The location of JOFs • There are over 275 jointly owned forests in Finland. • The total area of JOFs in Finland is approximately 576 000 ha – about 4,5 % of the area of non-industrial private forests. • The size of JOFs varies from under 20 ha to 90 000 ha. • The largest JOFs are to be found in Northern Finland. Land and water areas of Finnish jointly owned forests in the year 2013. Source: Land Survey of Finland

5. 1.2 The history of JOFs • The oldest jointly owned forests date to 1887. • Established only by the officials before 2003 • A majority were established through the basic land consolidation and as JOFs for relocated settlements in the period 1930−1960. • Since 2003, JOFs have been established through agreements between forest owners. • The number of JOFs has doubled ever since.

6. 1.3 The history of XXXX Jointly Owned Forest • Date of establishment: xxx • Type of JOF: family forest, land consolidation forest, investors’ JOF, JOF of relocated Karelians, etc. • Total area • At the point of establishment: xxx ha • At present: xxx ha • Significant events: • xxx

7. 1.4 Contact information of XXXX Jointly Owned Forest Registered hometown: Location of the forests: Chairman of the administrative board: Agent: Executive director: Website address:

8. 1.5 Development outlooks of JOFs • New jointly owned forests are mainly minor family forests. • An increasing amount of JOFs have been established by investors. • Municipalities and parishes are also increasingly interested in JOF partnership. • Forest owners incorporate their real estates into JOFs in return for shares.

9. 2 Administration of a jointly owned forest • Central decrees: • Act on Jointly Owned Forests 109/2003 • Act on the Formation of Real Estate 554/1995 • According to the Act on Jointly Owned Forests, a jointly owned forest has to have: • The rules of procedure • A forest management plan • An administrative board or an agent chosen by the partnership • An annual strategy and budget

10. 2.1 The administration of XXXX Jointly Owned Forest • Our jointly owned forest has an administrative board / an agent. • In our JOF there are: • xxx shareholding real estates • xxx members in the administrative board • xxx employees

11. 2.2 Figures on the area of our JOF

12. 2.3 The economy of our JOF • The turnover of our jointly owned forest is x € per year. • The value of our share is x €. • Out of our total income, x % are forestry earnings. • Other sources of income: x, y, z… • We divide a surplus of ca. x € to shareholders each year / every nth year.

13. 2.4 Taxation of JOFs • As a body corporate, the partnership is a tax-paying entity. • After taxation, the surplus is shared among the shareholders as tax-free profit. • Taxation is slightly lighter than in other private ownership forms. Photo: Microsoft Office

14. 3 Operation of a jointly owned forest • Jointly owned forests operate primarily in the field of forestry. • The forests can also be used for other purposes, provided that it is economically and otherwise reasonable. • Forests are tended and harvested according to a JOF’s own forest management plan. • Some of the profit is allocated as surplus; some can be consigned for future demands.

15. 3.1 Theforestry of our JOF

16. 3.2 The income of our JOF

17. 3.3 Our expanding JOF • Our jointly owned forest has purchased xxx ha of land within the last five years. • New areas totalling xxx ha have been incorporated in return for shares. • The incorporations have brought xxx new shareholders.

18. 4 Partnership in a jointly owned forest • Being a forest owner in a JOF is easy and carefree. • The administrative board or the agent is responsible for forest management and timber trade. • The model of management is functional and democratic. • Forests remain unpartitioned as reasonable units. • The “economy of greatness” works in both timber trade and silviculture. • The ownership of the property is easily rearranged through the conveyance of shares. • A JOF offers hunting, fishing, and other recreational opportunities. • It is also an easy and relatively safe investment opportunity.

19. 4.1 Concerning the rights of shareholders • There is no other way to be a shareholder than to own a real estate with shares of a JFO. • The right to a surplus according to the share ratio • The right to vote according to the share ratio • Some restrictions to the voting rights exist. • The Act on Jointly Owned Forests secures equal treatment of shareholders. • The area of a JOF is jointly managed – there is no right for a single shareholder to independent silvicultural activities. • Allowed activities according to the rules of procedure • Everyman’s right stands in the area of JOFs, too.

20. 4.2 The shares and shareholders of our JOF • In our jointly owned forest, there is a total of xxx shareholders. • The total amount of shares in our JOF is xxx. • Our JOF partnership has / does not have a pre-emption right to the separately sold shares.

21. 4.3 Incorporating woodland into XXXX Jointly Owned Forest • A forest owner can dispose land to be incorporated into our JOF in return for shares. • A possibility to incorporate either parts of land or complete forest holdings • No tax consequences • Provided that the agreement does not involve financial transfers • Bilateral incorporation agreement • Requires determining the value of the to-be-incorporated forest area and the JOF shares • Incorporating: inexpensive, no handling fee • The new partner immediately becomes an equal member of the JOF. • Purchase of property is also negotiable.

22. Thank you for your interest!If you have any inquiries aboutXXXX Jointly Owned Forest,please contact Name Surname(telephone number, e-mail address)