greenwood brazil v11

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8/4/2019 Greenwood Brazil v11

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 Year Revenue from Seeds Cumulative Seed Revenue Timber Production (m ) Revenue from Timber 10% Performance Fee

6th Year N/A N/A 100 m € 19,900 € 1,005

Management Fees (€70/ha/year) €1,330 for one hectare plot.

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• Calculations based on 1 hectare investment at € 9,750.

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Total Investment Hectares Allocated Total Returns Compound Rate of Return

€ 9,750 1 € 19,800 12.52%

€ 19,400 2 € 39,600 12.61%

€ 38,600 4 € 79,200 12.71%

The returns the client receives if they exit at year six are from the sale of the semi mature timber. The Guanandi crop is a particularly

attractive investment due to the fact that the client can exit at year six with profit, or they can continue to hold the inve stment andreceive a seed dividend each year until the final harvest at year nineteen. This differentiates Guanandi from species such as pine,

 which only produce a return at the end of a long period when the timber is harvested.

The return a client receives if they exit at year six should be approximately €20,000 per hectare. The investor will be able to sell out of 

the investment at any time after year six, with the return to the client increasing as the trees grow in size. By allowing the client to sell

their investment after year six or to continue to hold their investment, this gives the client greater control.

• Table indicating projected returns at year 6 of the investment.

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 Year Revenue from Seeds Cumulative Seed Revenue Timber Production (m ) Revenue from Timber 10% Performance Fee

7th Year € 1,000 € 1,000 € 100

8th Year € 1,100 € 2,100 € 110

9th Year € 1,300 € 3,400 € 130

10th Year € 1,500 € 4,900 € 150

11th Year € 1,500 € 6,400 200 m € 44,000 € 4,55012th Year € 1,000 € 7,400 € 100

13th Year € 1,300 € 8,700 € 130

14th Year € 1,600 € 10,300 € 160

15th Year € 1,900 € 12,200 € 190

16th Year € 2,100 € 14,300 € 210

17th Year € 2,200 € 16,500 € 220

18th Year € 2,200 € 18,700 € 220

19th Year € 2,200 € 20,900 350 m € 308,000 € 31,020

Total € 20,900 € 352,000 € 37,290Total (Gross) € 372,900

Total (Net) € 335,610

Management Fees (€70/ha/year) €1,330 for one hectare plot.

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• Calculations based on 1 hectare investment at € 9,750. • Seed sales  – years 7 to 19.

• Thinning  – year 11.

Timber sales – 

year 19.

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Total Investment Hectares Allocated Total Returns Compound Rate of Return

€ 9,750 1 € 334,660 20.46%

€ 19,400 2 € 669,320 20.49%

€ 38,600 4 € 1,338,640 20.52%

• Table indicating projected returns at the end of the investment (year 19).

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