Transcript Slide 1
CARBON CONSCIOUS LTD (CCF) : COMPANY UPDATE, MAY 2012 Business model • 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. CARBON CONSCIOUS LTD (CCF) : COMPANY UPDATE, MAY 2012 Strong growth # Targeted Planted Hectares * Planting Underway CARBON CONSCIOUS LTD (CCF) : COMPANY UPDATE, MAY 2012 Size of Australian Carbon Market CCF Supply 4 Mt PA Demand 346 Mt PA by 2020 Other Forestry 11 Mt PA CARBON CONSCIOUS LTD (CCF) : COMPANY UPDATE, MAY 2012 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 79 M 79 M 79 M 4c 16c 26c 3.6c 15c 24c Shares on Issue Basic EPS Diluted EPS^ • #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. CARBON CONSCIOUS LTD (CCF) : COMPANY UPDATE, MAY 2012 Increased certainty • Clean Energy Act 2011 (Carbon Tax) and Carbon Farming Initiative (CFI) are now law • 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 CARBON CONSCIOUS LTD (CCF) : COMPANY UPDATE, MAY 2012 Industry leading 2009 Carbon Conscious continues to lead the industry Executed both major CPRS carbon forest sink trades (Origin Energy & BP Singapore) 2010 Australia’s first international carbon trade (Carbon Conscious Ltd – Perenia) Executed Australia’s first & only senior debt facility for carbon forestry with CBA 2011 Executed 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 CARBON CONSCIOUS LTD (CCF) : COMPANY UPDATE, MAY 2012 Value proposition • $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 CARBON CONSCIOUS LTD (CCF) : COMPANY UPDATE, MAY 2012 Understanding the opportunity • Profitable company in new and emerging 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 CARBON CONSCIOUS LTD (CCF) : COMPANY UPDATE, MAY 2012 Carbon Conscious at a glance ASX Code Issued Capital FPO Shares Unlisted Options Market Cap Share price (@ 28/5/12) CCF 79.3 M 9.6 M $13 M $0.16 Major Shareholders Broadacre Asset Mgt Stoney Pastoral Co Yall Super 12 % 7% 3% Top 50 Holds Top 100 Holds 73 % 84 % Tightly held stock CARBON CONSCIOUS LTD (CCF) : COMPANY UPDATE, MAY 2012 Our expertise Management Team: Board of Directors: Peter Balsarini Stephen Lowe Executive Director, Chief Executive Officer Executive Chairman Stephen Bodeker Trevor Stoney Chief Financial Officer Non Executive Director Daniel Stevens Kent Hunter Director, Business Development Non Executive Director David Groom Andrew McBain General Manager, Operations Non Executive Director Jeff Douglas Land Manager Ric Collins Director, Carbon Estates CARBON CONSCIOUS LTD (CCF) : COMPANY UPDATE, MAY 2012