Growing Your FutureThe global bamboo industry is conservatively estimated to exceed USD 50 billion...

Growing Your Future

Bamboo Plantation Ownership

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Pages

1. APC Group Overview 4

2. Introduction to Bamboo 7

3. Bamboo Global Trade 11

4. Bamboo Ownership 15

5. Programme Overview 26

6. Appendix - APC Group 32

5. Appendix - Asset Class 38

6. Appendix - Kenya 42

7. Appendix - Frequently Asked Questions 44

8. Disclaimer 49

Contents

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APC Group Overview

SHARIAH COMPLIANCESELECTIVELY DESIGNATED BY THE ISLAMICBANKING & FINANCE INSTITUTE MALAYSIA

APC Global Footprint

5

APC Group Overview

The APC Group serves over 5,000 clients globally

Over USD 650 million in assets owned and under management

7.5 million trees and plant species owned and/or managed across more

than 126 plantations

Consolidated turnover ofUSD 70 million (2015 - Unaudited)

Average 157% ROI delivered to clients*

Operations in 17 different countries

Over 2,000 members of staff positioned in twelve offices across

four continents

SHARIAH COMPLIANCESELECTIVELY DESIGNATED BY THE ISLAMICBANKING & FINANCE INSTITUTE MALAYSIA * For clients that purchased Agarwood plantations

6

The APC Group

Established officially in 2008, although

operating privately since 2002, the group now

has plantations and agricultural projects on

four continents, with operational projects at

various stages from start-ups to fully operational

plantations and farms.

APC Group is the owner and operator of a

diverse range of commercial plantation and

farming businesses globally. The group has

provided sustainable forestry and agricultural

land acquisition and development services to the

global forestry and agricultural sector for more

than 10 years.

The group owns its own freehold and long-term

leasehold plantations. Its wholly owned land

portfolio is free from any bank debt, and has

been purchased with the company’s own funds.

APC Group Overview

7

Introduction to Bamboo

Introduction

Bamboo is the fastest-growing plant in the

world and has been around and used for

centuries. Records dating back more than

seven thousand years indicate products

made of bamboo, such as arrows, paper,

building materials, and books.

While bamboo grows everywhere in

the world except those places with

extremely cold climates, it is thought

to have originated in China, where the

first use of bamboo to make every day

items was recorded. Bamboo has been

an integral part of Chinese history and

culture being used in the production

paper and books, bedding, flooring,

medicine and cuisine.

Bamboo has also been of vital

importance to Africa, where it has

been and continues to be a material of

choice for traditional crafts throughout

the region. It is also important for

construction and is used in the

production of fencing, basketry and has

many other applications.

The rapidly diminishing supply of

natural bamboo through indiscriminate

clearing of natural forests, coupled with

increasing demand on the back of rising

populations and its myriad of uses, has

led to the following unique opportunity

of bamboo and farmland ownership.

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Fast Growth

Longevity

Carbon

Sequestration

Strength

Commercial

Applications

Bamboo is not a tree, it is a grass and grows like one. It is in fact the fastest growing

land plant in the world (only ocean kelp grows faster). A 20m bamboo culm can

replace itself within 50 days. Each time it is harvested it regrows naturally.

Bamboo is extremely durable with a life cycle of approximately 100 years.

Bamboo sequesters (absorbs) around 4 times more CO2 than average timber

and produces 35% more oxygen; as soon as a bamboo pole is harvested it starts

the process of regrowth and carbon sequestration.

Bamboo has greater tensile strength (or resistance to being pulled apart) than

steel, and it withstands compression better than concrete . As a result, it is a

major component in the construction industry for scaffolding, flooring, housing

and structural support across Asia and is now spreading globally.

Bamboo is a very versatile plant with numerous commercial applications. Over

1 billion people live in houses made of bamboo. In India alone over 2.2 million

tonnes of bamboo is used for paper. Other applications include fibre for clothing,

food, scaffolding, joinery, panels, flooring, furniture, utensils, activated carbon/

charcoal, textiles, medicines, and cosmetics. In Asia, Nivea on of the world’s

largest personal care brands has a range of products based on bamboo extract

as its main featured active ingredient. Additionally, bamboo biomass has great

potential to be an alternative renewable energy source. This market is rapidly

growing in size, as the world intensifies its initiatives to secure sustainable energy

supplies for the future.


Key Facts

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Bamboo is one of the most remarkable

plant species on the planet, and contrary

to popular belief, is actually a ‘grass’.

Native to several tropical areas around

the world, different species of bamboo

have shown themselves capable of

flourishing in even the most intemperate

climates, with some putting down roots

in cold mountainous regions and others

in Sub-Saharan Africa.

Bamboo has played an important role in

the evolution of mankind, having evolved

as a species between 30 and 40 million

years ago. Vast grasslands provided

food in an age when herbivorous

mammals were evolving, which in turn

provided food for mankind’s carnivorous

forebears. Many anthropologists have

suggested that mankind, as a species,

would not be where it is today without

the role that bamboo has played in its

evolution.

Unlike timber, bamboo is a self-

regenerating plant. New shoots replace

the old, which is extremely advantageous

for growers as bamboo replenishes

itself by regenerating the bamboo

shaft known as the culm. This means

harvests do not require the plant to be

felled or completely removed. Further,

it facilitates regular production from the

same plant, increasing the frequency at

which yields can be generated – very

important for a grower’s cash flow.

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Although a grass, bamboo is the fastest growing plant

in the world. Some species of bamboo are capable of

growing by almost a metre in a single day (that’s a rate

of almost four centimetres an hour), and the subfamily

of flowering evergreens has become an integral part of

Asia, Africa, Central and South America to which they are

native.

Bamboo can range in size from three metres to thirty

metres in height, with the taller species being of particular

importance to the construction industry. Bamboo has

a greater compressive strength than wood, brick or

concrete, and a tensile strength that matches, and in

some cases even exceeds that of steel. Bamboo houses

are gaining in popularity, while bamboo flooring is in high

demand due to its texture, durability, and natural beauty.

The total bamboo area in the world is approximately

36m hectares (ha) or an average of 3.2% of the total

global forested area. It is naturally distributed in the

tropical and subtropical zone between the latitudes 46°

North to 47° South. It grows at elevations from sea level

up to 3,000 meters anywhere there is a warm climate,

abundant moisture and productive soil. In the wild,

bamboo is mostly distributed, in the tropics, subtropical

and temperate zones of all continents except Europe

and North America. In recent years, bamboo has been

introduced into North America, Europe and Australia for

commercial and industrial reasons.

Figure 1 below indicates the regions where bamboo

growth occurs globally. Asian countries combined

represent 55% of global bamboo growth, followed by Latin

America with 33%. Some species also grow successfully

in mild temperate zones in Europe and North America but

both these regions are largely importers of bamboo.

(1000 ha)

0

< 50

50 - 500

500 - 1000

> 1000

No Data

Figure 1 – Area of Bamboo by Country (2010)

Source: Food and Agriculture Organization of the United Nations (FAO) (2010) Global Forest Resources Assessment 2010, Rome: FAO.

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The global bamboo industry is conservatively estimated

to exceed USD 50 billion over the next couple of years.

The market in 2015 was estimated to be USD 42 billion.

Industry analysts and experts expect growth over the

next few years to be exponential, as new technologies

come on line, and the uses to which bamboo can be put

increase.

The number of environmentally aware and socially

conscious consumers and investors is growing at a

rapid rate, with more and more people trying to steer

clear of investments that have a negative impact on the

environment. The triple bottom line of ‘people, planet,

profit’ is one that needs to be embraced if we are to

address and possibly reverse the damage created by

burning fossil fuels and denuding forests. Bamboo is set

to meet the needs of a growing global population, in a

sustainable and environmentally conscious manner.

As previously mentioned, the global market for bamboo

and bamboo related products is estimated to be USD 42

billion in 2015. This figure was calculated by taking the size

of China and India’s domestic markets, (believed to be

worth at least USD 40 billion) and adding known import/

exports figures as reported by the International Network

for Bamboo and Rattan (INBAR), the official source of

bamboo related trade data.

Bamboo Finished Products

Bamboo finished products according to INBAR data

totalled USD 1.56 billion in 2012. Finished products

comprise of bamboo shoots, woven products, industrial

products and furniture seats. The bamboo export market

is dominated by China, while Europe, where bamboo is

not native, is the largest importer. Western consumption

accounts for approximately two thirds of total global

imports as seen in the charts below.

Bamboo Global Trade

Figure 2 – Key Exporters and Importers of Bamboo Finished Products

Total (Kg, 2012) Total (Kg, 2012)

Key Exporters Key Importers

683,394,877 519,552,522

China

Indonesia

Vietnam

Netherlands

Thailand

Others 47,546,315 (7%)

11,811,426 (23%)

15,003,361 (2%)

24,126,612 (4%)

54,640,000 (8%)

530,267,163 (78%) Europe

Japan

USA

Austrailia

Canada

Others 56,259,257(11%)

15,995,573(3%)

18,204,115 (4%)

88,465,420 (17%)

103,561,031 (20%)

237,067,126 (46%)

0 0 200,000,000 400,000,000 600,000,000 100,000,000 200,000,000 300,000,000

Source: INBAR (2015) INBAR Bamboo and Rattan Trade Database, Available at: http://trade.inbar.int/ (Accessed: 2015).

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Bamboo Global Trade

31%Bamboo Woven Products

34%Bamboo Industrialised Products

17%Bamboo & Rattan

Furniture & Seats

18%Bamboo Shoots

Total (USD, 2012) $1,564,414,373.00

Figure 3 – Global Import/Export of Bamboo Finished Goods


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Bamboo Raw Materials

Bamboo has an extraordinary array

of uses, from food, to energy, to

building materials, and now even to the

manufacturing of fabric – bamboo fibre

can produce material that is softer than

the finest cotton, or even cashmere.

Every single day, bamboo is used for

fibre or food, by more than two and a

half billion people around the world,

and it has been estimated that more

than 1,000 different types of product are

made from bamboo.

Unlike many other resources, bamboo

is clean, green, renewable and

sustainable, being self-propagating and

not requiring insecticides or pesticides

to grow. Technology has now risen to

meet the needs of the expanding global

bamboo industry, creating even greater

demand and increasing utility.

The total amount of raw bamboo

traded in 2012 according to INBAR,

was approximately 146 million Kg with

a value of USD 105 million. Figure 4 on

the following page, illustrates the key

exporters and importers of raw bamboo.

China was the largest exporter by a wide

margin, accounting for approximately 79%

of raw bamboo exports. Europe despite

having no native bamboo was listed as the

second largest exporter with 6% of global

exports, likely due to it being a trade hub for

re-exports of imports from Africa and Asia.

Some Asian countries such as Japan and

Thailand are importers of bamboo despite

having their own natural stocks. This is

often a reflection of the level of domestic

usage in the country and indicates that it

may often be cheaper for them to import

than grow.

“The total amount of raw bamboo

traded in 2015 according to INBAR,

was approximately 146 million Kg”

Bamboo Global Trade

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Key Market Facts

• The global market for bamboo and bamboo related

products is estimated to be worth USD 42 billion in

2015. This is expected to rise in line with population

growth if not significantly more once bamboo’s

biomass applications become mainstream.

• Experts estimate that over 1 billion people live in

traditional bamboo houses, with the figure significantly

higher if one takes into account hybrid house

construction.

• The world market for chopsticks is believed to be worth

at least USD 400 million, with chopsticks made of

bamboo representing 75% of the market. According to

Chinese statistics in 2011, the country’s manufacturers

produce 60 to 80 billion sets of chopsticks each year.

40% of this production is used for the domestic market

with 60% exported. The major importers of Chinese

chopsticks are Japan and South Korea. Each year,

the Japanese use 23 to 25 billion pairs of disposable

chopsticks; approximately 200 pairs per person - the

majority of which come from China.

• Production of edible bamboo shoots is common in

Asia, especially China, Japan, Taiwan and Thailand. It

is widely found in Asian cuisine globally. At present,

over two million tonnes of edible bamboo shoots are

consumed in the world in each year.

• China is the major producer of bamboo-laminated

boards, with an estimated production capacity of

500,000 m³ per year. About 80% of bamboo laminated

board are turned into flooring with the remaining

20% used in the production of furniture and structural

products. More than 70% of China’s production is

catered toward the export market with the US and

Europe being the key importers.

• Bamboo as a textile has been used for years across Asia,

and is now spreading across the West rapidly. In the

UK, high street retailers like Top Shop and Mango have

begun selling bamboo based garments throughout

their stores.

Figure 4 – Key Exporters and Importers of Bamboo Raw Materials

Key Exporters

Total (Kg, 2012) 122,311,479

China

Europe

Pakistan

Thailand

Ethiopia

Others 7,667,416 (6%)

1,460,094 (1%)

3,681,891 (3%)

6,451,029 (5%)

6,756,030 (6%)

60,000,000 80,000,000 100,000,0000 20,000,000 40,000,000

Key Importers

Total (Kg, 2012) 145,514,911

Europe

HK

Thailand

USA

Japan

Others 10,189,340 (7%)

10,885,368 (7%)

16,605,651 (11%)

21,500,841 (15%)

27,422,767 (19%)

60,000,0000 20,000,000 40,000,000

58,910,944(40%)96,295,019(79%)


Bamboo Global Trade

15

Why Own Your Own Bamboo Plantatation?

Bamboo Ownership

APC’s selection of bamboo as one of its primary species was

based on two major criteria – profitability and exit option

opportunities.

Bamboo can be very profitable if managed professionally.

Bamboo is not only easy to cultivate meaning that

costs are lower than most other crops, but also highly

in demand. With an average annual yield of 20-25 wet

tonnes per acre and a number of beneficial attributes,

bamboo is ideal to replace cotton fibre in the textile

industry. This sector alone presents a tremendous

opportunity and one which owners can access early with

the existing opportunity.

The second and equally important criteria are the multitude

of exit option opportunities that are available for bamboo. If

for some reason bamboo use in the textile industry does not

grow or is not adopted to the scale expected, bamboo with

its plethora of other uses such as in, food, flooring, activated

carbon/charcoal, scaffolding, and dozens of others, will still

be in demand. Bamboo is in essence a diversified crop, which

in turn provides owners with significantly less risk than with

most other crops.

• Africa Plantation Capital Bamboo Plantation Ownership

is essentially a simple property transaction, involving the

development of land for the production of bamboo.

• The advantage of owning or leasing a plantation is that

it is a tangible asset with secured income generating

operations. Plantation ownership is particularly attractive

to those who wish to own productive assets that are not

affected by the typical volatility found in financial markets

and other traditional asset classes.

• Every bamboo plantation owner has the opportunity

to combine the benefits of huge global demand

with the expertise and infrastructure provided by

one of the world’s largest plantation management

companies. Plantation ownership with APC is hassle

free, with APC Management, if appointed, taking care

of everything relating to your plantation, from preparing

the bamboo for harvesting, to storing and selling your

plantation’s produce.

• Purchasing bamboo plantations is not only a socially

responsible decision, but has the advantage of delivering

annual returns as early as the fifth year of planting. The

fast growing characteristics of bamboo allow it to be

harvested for fibre from year 5. Owners can then benefit

from harvests annually until their management term

expires or is renewed.

• The yearly income from harvests provides owners the

comfort of an annual income from a truly sustainable

source, whilst supplying local and international markets.

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How does Bamboo Plantation Ownership Work?

Bamboo Ownership

Over the 5 year growth cycle your bamboo is maintained daily by your

Managing Agent, to ensure optimal growth

After the 5th year, your Managing Agent will harvest your bamboo on an annual

basis and send it for processing into fibre

The APC plantation management team plants saplings on your land

The final product is sold and the proceeds are paid to owners

Each plantation owner receives a Title Deed from the Kenyan Ministry of Land, Housing and Urban Development or a

long-term lease agreement

Within 6 months your bamboo saplings are transported to your land

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Perimeter Fence Irrigation SystemFire Prevention Systems Water Borehole

Example of a Typical Bamboo Plantation

Bamboo Ownership

Visitor Center

Plantation Office & Administration

Fibre Processing Facility

Workers Housing

Nursery and Propagation Newly Planted Saplings

Water Reservoir

Irrigation SystemWater Borehole

Fire Prevention Systems

Water Borehole

Water Borehole

Water Borehole

Water Borehole

Perimeter Fencing

Perimeter Fencing

Perimeter Fencing

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• Minimum initial capital required

• Bamboo is a self-regenerating

natural resource

• Harvest every year from year 5

• Annual income from year 5

• Fully Managed*

• No annual fees

• Buffer Stock replacement

• Portfolio diversification

• Proceeds in USD

• Multiple potential exit options

• Farm land is low risk

• Tangible asset

• Limited supply and strong demand

• Freehold land with Title Deed or Long-

Term Leasehold Agreement

• Safe and secure

• Forestry outperforms traditional financial

asset classes (stocks, bonds and fixed

deposits)

• APCs existing global sales and

distribution network

* Fully managed by your appointed Managing Agent

Once APC has purchased the land and has received the

title deeds, the APC plantation management team gets

to work.

Once the infrastructure is complete, the bamboo saplings

you purchased are planted and you can rest assured

that they will grow optimally under the supervision of

our experienced APC plantation management team, if

appointed.

The land is cleared and infrastructure is added in the form

of fencing, nursery and propagation facilities. Boreholes

are dug in multiple locations in order to ensure a clean

and abundant water supply.

APC Plantation Acquisition and Preparation

Bamboo Ownership

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• APC before finalising any land purchase makes sure

that the land is suitable for the type of crop we are

planning to grow.

• Our experts after six months of intensive research,

which include land surveys, site visits, soil and water

tests, the analysis of weather history and patterns,

have identified land located at the Bao Lala locality

of Kilifi County, a few kilometres after the popular

Arabuko Sokoke Forest in Kenya, as ideal for growing

our innovative bamboo.

• The area has a combined average rainfall of

approximately 1,000mm per year, an average

humidity of 65%+, average temperature of 24

degrees Celsius and a soil Ph of 6.3, amongst other

necessary data which is required to successfully

grow our bamboo.

• APC has acquired 1,000 acres of land in this area

and is planning to create fully operational bamboo

plantations in 3 phases. Creating the proper

infrastructure is vital for a successful plantation and

as such we are heavily investing in infrastructure.

The plantation will be fully fenced, with electricity

facilities, boreholes, water tanks, dams, drip irrigation

system storage facilities, security and 24/7 fire

prevention systems.

• APC has already started all work on site for Phase

1 of the project, which began early 2016. We have

received the necessary Phytosanitary Certificate and

are currently importing the required saplings.

• The plantation is divided in 1 acre plots, you may

purchase as many acres as you desire (subject to

availability) and each plot is fully operational. Each plot,

after the 5 year maturity cycle, should yield between

20-25 wet tonnes per acre annually and produce

approximately 15 tonnes of dry fibre per acre. Your

bamboo will keep growing and will be harvested

every year by your appointed Managing Agent. It is

capable of being harvested until the end of its life span

(up to approximately 100 years).

• This is a unique lifetime opportunity that could

secure your family’s future for decades by acquiring

a tangible income producing asset that grows in

value.

Bamboo Ownership

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Title Deed

All bamboo plantation owners receive a title deed to the land from the Kenyan

Ministry of Land, Housing and Urban Development or a long-term lease

agreement (depending on your nationality). [All title deeds may have up to 4

names on them and they are fully transferable as part of your estate].

Management Agreement

You are required to enter into a bamboo management agreement with

skilled professionals for the maintenance and management of your bamboo

for the duration of your ownership. You can select and sign a management

agreement with Africa Plantation Capital Management or alternatively, may

contract a third party of your choosing.

Sales and Purchase Agreement

You will receive, via a Sales and Purchase Agreement, all the legal rights to

your bamboo for the duration of the term on your designated plantation.

Bamboo Ownership Certificate

You will receive a Bamboo Ownership Certificate, which outlines the following:

• Unique tagging code

• Number of bamboo saplings purchased

• Plantation Address

• GPS co-ordinates of the plantation

Key point

Owners must make the choice of instructing a qualified plantation manager

to manage and maintain their bamboo or use the on-site plantation manager

Africa Plantation Capital Management. The plantation manager must work to

best practice forest management (Please refer to terms and conditions for full

details).

Documentation

Bamboo Ownership

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• The cycle begins with evaluating how many

acres you wish to purchase. The minimum

purchase is USD 24,000 per acre.

• You will receive all legal documentation

pertaining to your purchase as soon as the

purchase is complete.

• Your funds from the purchase will be used

to purchase title to the plantation land and

to procure bamboo saplings, which in turn

will be planted on your bamboo plantation

in Kenya.

• Your bamboo saplings are then grown

and maintained on the plantation by the

plantation management company of your

choice under a separate management

agreement.

• From year 5 the bamboo is mature enough to

be harvested annually and generate income

from fibre sales.

• Once your harvested final product has been

sold, the net proceeds shall be paid to you on

an annual basis, from year 5.

• Further bamboo will re-grow from the same

clump and roots, generating poles/culms

each year without replanting.

Purchase and Harvest Process

Bamboo Ownership

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Tissue Culture

PlantingHarvesting Growing

Multiplication Nursery

Bamboo FibreChipping/Soaking Pulping/Drying

Once the bamboo is harvested, the harvested bamboo is

taken to mills where it is crushed and submersed in a strong

solution of sodium hydroxide which dissolves the bamboo

cellulose. With the addition of carbon disulfide it renders the

mix ready to regenerate fibres which are then drawn off,

washed and bleached to a bright white colour and dried. The

resultant fluff is very long in staple and visibly finer than other

fibres. It is then spun into yarn, like any other textile fibre. The

longer staple and higher tensile strength, is what makes a

tough, soft yarn – which is not as susceptible to wearing and

fraying as many other yarns. This is what gives bamboo fabrics

excellent durability. The hollowness of the fibre contributes to

its very high level of absorbency but it does take longer to dry

on a clothesline. The hollowness of the fibre also enables it to

hold dyes and pigments more readily and permanently, thus

making it much more colour-fast.

Bamboo Fibre Processing Cycle

Bamboo Ownership

23

Modern portfolio theory attempts to maximise portfolio returns

relative to risk by constructing a diversified portfolio of assets. This

is done by selecting unique uncorrelated asset classes.

APC adds another layer to this theory by providing a product

which in itself is diversified.

This mitigates risk further and is essential to having a truly well

balanced portfolio.

CASH

FOREX

STOCKS

LAND

COMMERCIAL

AGRICULTURAL

RESIDENTIAL

BONDS

PROPERTY

FIBRE FOR TEXTILES

TOWELS

FOOD

FRAGRANCE & ESSENTIAL OILS

FURNITURE

FLOORING

DISPOSAL BBQ’S/CHARCOAL

BUILDING MATERIALS

ACTIVATED CARBON

BEDDING

The Importance of a Balanced Portfolio

BAMBOO

Bamboo Ownership

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Nursery Planting HarvestingGrowth

Fast Growth Figure of Bamboo (Moso, Phyllostachys Pubences) From Shoot to Young Bamboo

* BOO-TEX™ refers to bamboo based textile.

Bamboo Ownership

Young bambooshoot aboveground growth

Time

BambooCurve

Height (M)

WinterShoot

Young bamboo shoot underground growth

18 days 28 days 36 days 44 days 56 days

Bamboo

S

pun into Yarn

Woven into Fab

ric

Pro

ce

ssed into BO

O-T

EX

™* Fibres

25

Fully Integrate Value Chain Plan

Vertical integration maximises profit opportunities throughout the value

chain. While the current model focuses on the manufacture of bamboo

fibre, manufacturing units are planned which will enable APC to enter

into multiple verticals such as fibre, pulp, biomass and food production.

Manufacturing

n

n

Plantations Retail

Plantations Retail

APC’s exsisiting

distribution network

Other retailpartners

Bamboo Fibre and Pulp

Production

AfricaPlantationProduction

Facilities

Ownership andmanagement

Cultivation,husbandry and management

Bamboo Ownership

26

The 25 Year Economic Projection

Although the projections displayed in this page reflect only a 25 year window, your bamboo plantation has a productive

life cycle of approximately 100 years. Additional to what is displayed within the adjacent charts, you will have freehold

or long-term lease title to the land, and benefit from capital improvements to the land, in addition to ownership of all

the bamboo that is planted on the land.

*Notes:- Land appreciation has not been factored in.

- Base case values assume an annual yield of 15 tonnes/acre and that the sales price rises by 4% p.a. beginning in year 6, however the minimum price guarantee of USD 500 is fixed regardless of year.

Agricultural land in Kenya continues to climb at a staggering annual rate of 12%

Assumption Measure Base Case Range Comments

Survival Rate% of Initial Planting

100% 100%Your plantation will have a 100% survival rate due to the fact that APC replant any bamboo that dies or is damaged at no additional cost to you.

YieldTonnes per Acre (dry fibre)

15 12-18Fully irrigated and cultivated APC bamboo is expected to yield between 20-25 wet tonnes per acre, and is expected to produce about 12-18 tonnes of dry fibre per acre.

Sales PriceUSD per Tonne

USD 500USD 900-

3,000

Bamboo fibre has been selected as the desired end product, although this will be dependent on market dynamics at the time of harvest, as such, the most profitable viable end product will be selected at harvest time. The retail pricing of bamboo fibre is currently USD 900-3,000 per tonne, depending on its decitex (count grading).

Price Increase % P.A 4% 3-5%

World inflation typically ranges between 3-5%, therefore the sales price has been estimated to rise by 4% p.a. beginning in year 6. The minimum price guarantee of USD 500 is fixed regardless of year. Inflation is significantly higher in emerging economies compared to developed industrialised ones.

Full Harvest Term

Years 15 up to 100

Bamboo is harvested annually beginning in year 5. Although the initial management agreement term is 15 years in duration (if APC Management is appointed), it is renewable upon the same terms upon expiration. Bamboo regenerates and thus can be harvested for a substantially longer time frame if requested.

Return on Invested Capital (ROIC)*

% 295.01%295.01-699.33%

ROIC is dependent on the bamboo fibre yield, sales price and holding period. ROIC ranges between 295.01-699.33%, over 15 to 25 years, assuming an annual yield of 15 tonnes/acre beginning in year 5 and a sales price of USD 500, rising by 4% p.a. beginning in year 6.

Annual Rate of Return (ARR)*

% 19.67%19.67-27.97%

ARR is dependent on the ROIC and the holding period. The ARR ranges between 19.67-27.97% over 15-25 years, assuming an annual yield of 15 tonnes/acre beginning in year 5 and a sales price of USD 500, rising by 4% p.a. beginning in year 6.

Programme Overview

27

Assumptions:

- APC Management is selected- Annual yield of 15 tonnes per acre from year 5 onwards - Prices rise by 4% p.a. beginning in year 6, however the minimum price guarantee of USD 500 is fixed regardless of year

Return on Invested Capital (ROIC) is a profitability ratio. It measures the return percentage for those who have provided capital. The ROIC% tells us how good the product is at turning capital into profits.

Annual Rate of Return (ARR) is the average annual percentage of returns that you can expect based on your initial capital. (ROIC/# of Years)

Annual Harvest ProfitAPC GUARANTEE a minimum purchase price of USD500 per tonne of processed bamboo fibre and this GUARANTEE is included in the management agreement.

Years Gross Profits USD Mgt. Fee USD (30%) Net Profits USD Annual ROI%

Year 1 - - - -

Year 2 - - - -

Year 3 - - - -

Year 4 - - - -

Year 5 $7,500 $2,250 $5,250 21.88

Year 6 $7,800 $2,340 $5,460 22.75

Year 7 $8,112 $2,434 $5,678 23.66

Year 8 $8,436 $2,531 $5,906 24.61

Year 9 $8,774 $2,632 $6,142 25.59

Year 10 $9,125 $2,737 $6,387 26.61

Year 11 $9,490 $2,847 $6,643 27.68

Year 12 $9,869 $2,961 $6,909 28.79

Year 13 $10,264 $3,079 $7,185 29.94

Year 14 $10,675 $3,202 $7,472 31.13

Year 15 $11,102 $3,331 $7,771 32.38

Year 16 $11,546 $3,464 $8,082 33.68

Year 17 $12,008 $3,602 $8,405 35.02

Year 18 $12,488 $3,746 $8,742 36.42

Year 19 $12,988 $3,896 $9,091 37.88

Year 20 $13,507 $4,052 $9,455 39.40

Year 21 $14,047 $4,214 $9,833 40.97

Year 22 $14,609 $4,383 $10,226 42.61

Year 23 $15,194 $4,558 $10,636 44.31

Year 24 $15,801 $4,740 $11,061 46.09

Year 25 $16,433 $4,930 $11,503 47.93

15 Years Accumulated Net Profit USD 70,803 25 Years Accumulated

Net Profit USD 167,838

ROIC 295.01% ROIC 699.33%

ARR 19.67% ARR 27.97%

Programme Overview

28

Total Gross Profit Harvest Cost and Sales Commission Fees*

120,000

100,000

80,000

60,000

40,000

20,000

0

-20,000

-40,000

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

7,50015,300

23,41231,848

40,622

49,747

59,223769,237

79,321

90,046

101,148

-24,000

Programme Overview

Years

USD

Base Case Forecast (15 years)

A comparison of different key variables over a 15 year term, under different fibre yield scenarios, is provided to the right (12, 15 and 18 tonnes/acre per year):

Notes

• Bamboo is harvested annually beginning in year 5

• End product is assumed to be bamboo fibre, with a sales price of USD 500/tonne when harvesting begins in year 5.

• Sales price is assumed to rise by 4% p.a. beginning in year 6, however the minimum price guarantee of USD 500 is fixed regardless of year.

• Accumulated Profit is net of Harvest Cost and Sales Commission fees (30% of gross sales proceeds)*

• No land appreciation is taken into account

* If APC Management is appointed

Return on Invested Capital (ROIC) is a profitability ratio. It measures the

return percentage based on your initial capital. The ROIC% tells us how

good the product is at turning capital into profits

Low Case Base Case High Case

12 tonnes/acre

15 tonnes/acre

18 tonnes/acre

AccumulatedNet Profit

USD 56,642 USD 70,803 USD 84,964

ROIC 236.01% 295.01% 354.02%

29

Programme Overview

Base Case (15 tonnes/acre) Low Case (12 tonnes/acre) High Case (18 tonnes/acre)

90,000

80,000

70,000

60,000

50,000

40,000

30,000

20,000

10,000

- 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Accumulated Net Profit by Scenrio

Years

USD

The sales price is assumed to grow by 4% p.a. beginning in year 6, however the minimum price guarantee of USD 500 is fixed regardless of year*.

* If APC Management is appointed

Comparison of Forecast Scenarios (15 years)

30

31

Biological

Growth

Weather

Conditions

Fire

Pests and

Disease

Storm

Damage

• Continuous investment in research and development ensures that APC achieves its

goal of improving quality, quantity and consistency of yields.

• 100% survival rate due to the fact that APC replant any bamboo that dies or is

damaged at no additional cost.

• End processing also requires specific proprietary knowledge and processes, in

order to deliver economies of scale.

• Kenya offers ideal growing conditions for bamboo.

• Kenya attract high average rainfalls and sunshine, with average daily temperatures

between 23 and 28 degrees Celsius.

• To mitigate against drought, APC develops supplementary water supplies.

• As part of its land procurement process, APC establishes irrigation infrastructure for

the plantation site prior to the transfer of ownership.

• Irrigation supply is typically sourced from local dams, aquifers, or rivers, and secured

by water extraction licenses where necessary.

• Fire risk is minimised by constructing wide fire breaks which are maintained free of

all flammable material throughout the dry season.

• A programme of interplanting eradicates any wild grass incursions into the estates.

• All staff are trained in fire prevention and fire control, and workers are provided with

light-duty fire-fighting equipment, which can be mounted on the tray of a utility

vehicle in a matter of minutes.

• Staff will be available at your plot 24 hours a day, 7 days a week.

• Sprinkler irrigation systems can instantly cover an entire plantation with water

pumped to all areas, supported by engine-driven systems in the event of

power outage.

• There are very few pests that inhibit the growth of bamboo, the species is naturally

pest resistant to a large variety of pests.

• Disease is rarely a problem due to the fast growing and hardy nature of bamboo.

• Drip irrigation allows instant delivery of pesticides and fungicides to every clump

if necessary.

• Tropical zones attract hurricanes and cyclones. APC however, establishes its

plantation sites inland, where the likelihood of cyclones is greatly diminished.

• Monsoon rains are planned for, and sites are chosen above the flood plains

Installed drainage and water storage systems are planned scientifically to benefit

from monsoons.

• To reduce the risk of freak storm damage, a row of wind-resistant host species are

planted along the vulnerable edge of the plantation.

Programme Overview

Risk Mitigation

32

Appendix - APC Group

• Group turnover of around USD 53 million

• New retail and wholesale fragrance brand developed

• Joint programme agreed with an Indian growers group

• Private placement approved with leading Gulf-based private equity group

• Group turnover of around USD 8.5 million

• Credited with reintroducing the Aquilaria Crassna species to Sri Lanka


• Significant Gulf-based owner approved structure

• Opens retail perfume and cosmetics outlets and concessions in key Asian cities and the

Middle East with global retailers

• Expansion into China – major scientific and commercial collaborations signed with

established parties


• First commercial harvests started, with yields and returns ahead of forecasts

• Asset Management division established for market research and due diligence


• Rapid expansion of Aquilaria plantations in Thailand

• Acquisition of Aquilaria distillation and research centre in Thailand

• Expansion into bamboo growth and ownership in Kenya

• Record high turnover of USD 70.3 million and net profit of USD 6.7 million *

• Opens one of Southeast Asia’s largest agarwood processing facilities in Johor, Malaysia

• Attained Shariah compliance approval for one of its products from the IBFIM

• Strategically expands its Aquilaria plantations into Malaysia

Aquilaria programme conceived2009

2014

2013

2012

2011

2010

2015

Turnover Net Profit

Group Sales

2010 2011 2012 2013 2014 2015*

80m

70m

60m

50m

40m

30m

20m

10m

0

Year Ended 31st December

Turnover Net Profit

2010 USD 8,559,159 USD 984,158

2011 USD 9,034,528 USD 1,272,618

2012 USD 35,961,426 USD 3,658,555

2013 USD 53,491,926 USD 4,011,894

2014 USD 58,800,000 USD 6,113,205

2015* USD 70,300,000 USD 6,742,000

*Unaudited figures

33


Agarwood Specialist

Discovery

Development

Production

• APC is the world’s most successful, award-winning,

agarwood grower

• Pioneers in the agarwood industry

• APC has 25% stake in total managed assets

• Owners of its intellectual property processes

• APC invests and owns its own plantations

• Heavily investing in back end manufacturing and distribution

APC has Over 10 Years of Research and Development History

• Founded on the back of extensive and ongoing research and development

• Scientific and Research Advisory Board consisting of leading, recognised experts in the

bamboo plantation sector

• Working with recognised scientific and academic industry research groups

• Inaugural agarwood owner harvests during 2012, validates APC’s business plan

• Trial harvests since 2009

• Further research and development throughout, results in consistent yield and new

markets for end products

• Capacity to deliver trusted and, more importantly, consistent supply, has attracted

premiums over market prices

• APC has established its own luxury brands thats have catapulted its image, with its

fragrance brand now receiving endorsements from celebrities and royalty

• APC looks to maximise market share in all bamboo end product markets

• Global corporate footprint established in Switzerland, Luxembourg, Malaysia, Thailand,

Singapore, Indonesia, Sri Lanka, Hong Kong, UK, UAE, and the USA

• APC commences commercial plantations in 2008

• Develops its own extensive nursery operations in Sri Lanka, followed by Thailand,

ensuring the highest quality elite planting stocks

• Survival rates strengthen with each vintage through rigorous research and development,

and accumulation of intellectual property

APC Offers the World’s

Most Advanced and

Proven

Technical Expertise

“ ”

34


Group CEO - Barry Rawlinson

Barry is a British national with extensive overseas executive and management experience.

Graduating from the University of Canterbury with a Master of Business Administration (MBA),

he has held the position of Group Chief Executive Officer of Asia Plantation Capital since 2010.

Barry has more than 30 years of expertise in senior management, with 10 years based in the

agroforestry industry, developing and managing sustainable plantations.

Barry’s interest in the environment and ecological sustainability issues, together with a

commercial background, attracted him to the forestry industry in Thailand and subsequently

to Asia Plantation Capital. He has orchestrated and piloted a range of social and environmental

projects that have become a core principle of Asia Plantation Capital’s corporate and commercial

philosophy.

CEO Asia Pacific - Steven Watts

Steve joined the APC team to spearhead its plantation acquisitions and management in Malaysia.

He is also overseeing the establishment of a retail presence in malls around the country, and

the opening of regional branch offices for APC. He brings with him more than 30 years of

experience, and is formerly a Senior Board Director of Jaguar Cars.

CEO Europe - Gary Crates

A successful international executive with a broad range of senior management experience, from

owning multiple international franchises, through to being a Regional Director of a major multi-

national business with 500+ staff and a USD 200m turnover.

As the CEO of Europe, Gary drives the growth and expansion of Asia Plantation Capital into Europe,

initially focusing on key strategic markets in the UK, France, Germany and Switzerland. A seasoned

professional in all aspects of real estate-based investments, Gary has been involved in various global

projects such as social housing in Brazil, residential properties in Romania and Spain, agricultural

projects in Africa and Europe, and now sustainable forestry plantations in Asia.

CEO Middle East and FDB Dubai - Dean Henry

Dean Henry has more than 20 years’ experience in customer relations and interactions, having

run large consultancy teams and headed up several investment businesses. Dean has held UK

FCA Approved Person status (FCA was previously known as FSA), which provided him with

considerable insight into understanding the needs and requirements of high-net-worth clients.

He has acquired a great depth of market knowledge by dealing both with individuals, as well as

large international corporates and consortia. Dean is currently CEO of Asia Plantation Capital

LLC in the Middle East, specialising in marketing and representing APC Group projects and

businesses in the lucrative Middle Eastern market place.

Key Management and Executives

35


Operations Director - Jinda Tonkhambai

Jinda is a Thai national whose family has been in the agricultural business for generations. She

assumed her role in the family business at a young age, and has acquired a lifetime’s experience

in the operational management of farms and plantations. Jinda grew up in the rural area of Sakon

Nakhon in Northeast Thailand, which is now a key strategic region for the development of Asia

Plantation Capital’s new plantations. She offers her years of experience and network to Asia

Plantation Capital, acting as a Board Director for Asia Plantation Capital Holdings Ltd, Thailand,

and also as Managing Director for Asia Plantation Capital Distilleries.

A senior figure and major employer in the local community, Jinda offers a local commercial

advantage through her network of contacts. Her principal role is as Senior Director of Operations

for plantations in the Sakon Nakhon area. In this integral day-to-day role of plantation management,

she is responsible for operational staff recruitment, training, liaising and negotiating with vendors

and suppliers, budgeting and strategic planning. She is involved in land identification and

acquisition, and oversees the architectural design of the plantations, as well as being responsible

for a large, local workforce.

Agricultural Director - Robin Jewer

With a PhD in organic farming and husbandry, Robin has more than 25 years’ experience in the

management of global agricultural operations. Born in the UK, and having spent the first part of

his career working on large UK farms, Robin went on to manage some of Russia and Europe’s

biggest agricultural estates for both listed and non-listed companies. Robin is ‘Basis’ qualified,

which enables him to dispense advice on agronomy to current and would-be growers, and

lists his tenure as the Agricultural Director for the Saudi royal family as one of his many career

highlights. Robin’s agroforestry expertise and experience play a vital role in the development and

success of APC’s managed plantations.

Logistics Director - George Auger

With a Master’s degree in Supply Chain Logistics, George brings decades of experience to his

role as Logistics Director at APC. He has worked in the USA, Spain, Poland, the Dominican

Republic and Russia in a variety of capacities ranging from farm manager to agronomist, and now

specialises in processes that ensure the efficacy of the supply chain in ideal, vertically integrated

business models. In his younger days George worked for the UK’s Forestry Commission, and,

most recently, has been involved in maximising agricultural yields and creating product control

systems on extensive estates in Europe.

Thailand Chairman - Roger Hargreaves

Roger is also the Operations Director for Thailand and, with his extensive experience in identifying

and negotiating suitable land purchases, is actively involved in the expansion of new plantations

in Laos and China. He is a qualified Independent Financial Adviser, and a diploma graduate from

The Chartered Insurance Institute, London, of which Her Majesty the Queen is patron.

Key Management and Executives

36

Special Scientific Advisor - Dr Pakamas ChetpattananondhPh.D. in BioScience and Technology, M.Sc. in Environmental Diagnostics, B. Eng. in Chemical Engineering

Dr Pakamas is an Assistant Professor at the Department of Chemical Engineering - Prince

of Songkla University, Thailand. She obtained a degree of B Eng in Chemical Engineering

from the Prince of Songkla University, a MSc in Environmental Diagnostics, and a PhD in

BioScience and Technology from Cranfield University, UK. She now works hand in hand with

Songkla’s specialist research team. For the last 12 years, Dr Pakamas has focused on detailed

research into the distillation and yields of agarwood in Thailand, and is now a recognised

academic authority on the subject. She is also currently involved in ongoing collaborations

with universities in Malaysia and China.

Scientific Advisor - Dr Kodi Isparan KandasamyPh.D. and M.Sc. in Plant Biotechnolgy, B.Sc. (Hons.) in Botany

Dr Kodi is a plant biotechnologist with over 30 years of experience in the field of plant science,

and is currently the Senior Vice President at the Business Development and Investment Division

of the Malaysian Biotechnology Corporation. He has a PhD and a MSc in Plant Biotechonolgy,

and a BSc (Hons) in Botany. Prior to joining the Malaysian Biotechnology Corporation, Dr Kodi

was, for more than eight years, the Senior Scientist and head of the Tissue Culture Laboratory

at the FRIM (Forest Research Institute Malaysia). He was also previously the R&D Manager for

TropBio Research Sdn. Bhd., a private Malaysian biotechnology company.

He has published over 100 publications and is a member of the editorial boards of a number

of local and international scientific journals, including being on the executive editorial board

of the Journal for Tropical Medicinal Plants. He is also a member of the Genetic Modification

Advisory Committee (GMAC), representing the Malaysian Biotechnology Corporation.

Scientific Advisor - Dr Yumi Z Has-Yun bt Hashim

PhD in Nutrition and Cancer, M.Sc. Eng. (Bioprocess), B.Sc. (Hons.) BioMedDr Yumi is an Associate Professor at the International Islamic University Malaysia’s Kulliyyah of

Engineering, Department of Biotechnology Engineering, and a Visiting Academic at the School of

Biomedical Science of the Charles Sturt University in Australia. She has a PhD in Nutrition and Cancer,

a Msc Eng (Bioprocess), and a BSc BioMed (Hons). Dr Yumi has been working in the interdisciplinary

area of biomedical science-biotechnology-bioprocess engineering for more than a decade, with

a special interest in agarwood. She has published articles, as well as presented papers at various

conferences in Malaysia and overseas.

Scientific and Research Advisory Board


37

Scientific Advisor - Dr Dai Haofu, Ph.D.

Dr Dai is the Deputy Director of the Institute of Tropical Bioscience and Biotechnology and

the Chinese Academy of Tropical Agricultural Science. He graduated in chemistry from

Jiangxi University in China, and thereafter was admitted as a candidate for ‘successive

postgraduate and doctoral programmes of study’ in the Kunming Institute of Botany,

Chinese Academy of Sciences. He specialised in Biology at the German Academic

Exchange Centre (DAAD) and continued his post doctorate degree at Heinrich-Heine-

Universität Düsseldorf, Germany.

Dr Dai has more than 10 years of extensive agarwood research and development

experience. He has conducted systematic studies, not only on domestic agarwood

(including Qi Nam), but also on agarwood from 10 foreign countries. He has hands-

on experience of agarwood plantations, and has invented and developed a successful

inoculation method, which he patented. In addition, Dr Dai actively develops agarwood

related downstream products, and has developed a high-end perfume, essential oil, tea,

cigarettes and wine. He heavily promotes sustainable development within the agarwood

industry. Dr Dai is widely acknowledged as one of Asia’s leading experts in agarwood and

has appeared on CCTV (China Central Television) on numerous occasions.

Scientific and Research Advisory Board


38

Forestry Correlation (1987-2014)Independent Return Drivers

- Very low historic correlations

with other asset classes,

making it an excellent

portfolio diversifier

- Inclusion of timber returns

enhances portfolio efficiency

and brings about lower

risk levels

- Growth determined by

organic factors rather than the

economic climate

Natural Inflation Hedge

- Forestry in the long-term is

strongly correlated with inflation.

Its organic growth components

make it ideal for hedging against

inflation, particularly if

unanticipated

U.S Treasury Bills (90d) 0.56

Inflation (CPI) 0.46

S&P 500 0.23

S&P GSCI 0.21

MSCI EAFE International 0.19

Russell 2000 0.14

Barclays Agg. Bond Index 0.14

NCREIF Real Estate 0.02

NAREIT -0.16

-0.2 0 0.2 0.4 0.6

Source: Campbell Global (2015) Timber Primer : Campbell Global.

S&P GSCI 0.71

U.S Treasury Bills (90d) 0.67

NCREIF Timberland Index 0.46

Barclays Agg. Bond Index 0.18

MSCI EAFE International 0.13

S&P 500 0.06

NCREIF Real Estate 0.02

Russell 2000 -0.09

NAREIT -0.13

-0.2 -0.1 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8

Source: Campbell Global (2015) Timber Primer : Campbell Global.

Inflation Correlation (1987-2014)

Appendix - Asset Class

39

Best Performing Asset Class- Forestry has historically outperformed traditional asset classes

Agroforestry Returns vs. Other Asset Classes

NCREIF Timber

Global Bonds

Global Stocks Emerging Market Stocks

Large Cap American StocksReal Estate

Small Cap American Stocks

1970

1975

1980

1980

1985

1990

1995

2000

2005

2010

2015

2,500

2,000

1,500

1,000

500

0

Source: Adapted from The International Woodland Company (IWC) (2013) Timberland Investments in an Institutional Portfolio: IWC. It has been assumed that the figures between1987-2012 can be reflected over the period 1970-2015.


40

Emerged as an Asset Class in the 1980s

• Biological growth reduces risk of negative returns

• Funds invested now in excess of USD 30 billion

• Superior risk-return profile

- Exit timing flexibility and inherent biological growth provide attractive return structure

- Biological growth has historically driven more than 50% of timberland investment returns, a factor independent of

economic climate

Forestry Volatility vs. Other Asset Classes

Ann

ual C

ompo

und

Retu

rn

Annual Standard Deviation

Forestry

Real Estate

Global Bonds

Emerging Market Stocks

Global Stocks

Large Cap American Stocks

Small Cap American Stocks


Source: The International Woodland Company (IWC), NCREIF Timberland Index . 2015. [ONLINE] Available at: http://www.iwc.dk/wp-content/uploads/2014/09/Timberland-in-an-institu-tional-portfolio-March-2013-update.pdf. [Accessed 12 March 2015].

41

42

Kenya’s economy grew by an estimated 4.9% in the

first quarter of 2015, compared to 4.7% in the same

period in 2014, according to Kenya National Bureau of

Statistics. Agriculture, infrastructure, financial services

and information and communication technology (ICT)

contributed to the growth, but manufacturing and

tourism declined. The economy grew by 5.4% in 2014

and the World Bank, in its Kenya Economic Update for

March 2015, projected the economy will grow by 6%

in 2015, supported by lower energy costs, investment

in infrastructure, agriculture, manufacturing and other

industries. A stable macroeconomic environment,

continued investment in infrastructure, improved business

environment, exports and regional integration will help

sustain the growth momentum.

Kenya has the potential to be one of Africa’s great success

stories from its growing and youthful population, a

dynamic private sector, a new constitution, and its pivotal

role in East Africa. Addressing challenges of poverty,

inequality, governance, low investment and low firm

productivity to achieve rapid, sustained growth rates that

will transform the lives of ordinary citizens, will be a major

goal for the country.

Economic Overview

Appendix - Kenya

43

Real GDP Per Capita - Kenya

Agriculture remains the backbone of

the Kenyan economy, contributing

25% of GDP. About 80% of Kenya’s

population of roughly 42 million

work at least part-time in the

agricultural sector, including

livestock and pastoral activities.

Over 75% of agricultural output is

from small-scale, rain-fed farming or

livestock production. 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

GDP per capita (current USD)

1,400

1,200

1,000

800

600

400

200

0

USD

Year

Source: The World Bank (2016) GDP per capita (current US$) , Available at: http://data.worldbank.org/indicator/NY.GDP.PCAP.CD?page=5 (Accessed: 2016).

Appendix - Kenya

44

Q1. Who is Africa Plantation Capital?

African Plantation Capital is the owner and operator of

bamboo plantations in Kenya, and forms part of the APC

group of companies (APC). Its aim is to build a diverse range

of commercial plantation and farming businesses across

Africa.

APC’s focus is on multicultural and diverse plantation

projects geared to the domestic and commercial demands

of the countries in which it operates. Working closely with,

and supporting fragile local communities, is an underlying

core principle of its business, providing social and cultural

support, as well as investment, to encourage these

communities to move away from traditional deforestation

and illegal logging activities as a main source of income.¬

Q2. Who is Africa Plantation Capital Management?

Africa Plantation Capital Management is the plantation

management company responsible for the planting,

husbandry and maintenance of plantations across Africa.

Q3. Who is the APC Group?

The APC Group has provided sustainable forestry and

agricultural land acquisition services to the global forestry

and agricultural sector for more than 10 years. It has its own

in-house land surveying team, as well as expert foresters

and agronomists.

The APC Group owns its own freehold and long-term

leasehold plantations in Sri Lanka, Thailand, Malaysia and

Kenya. Its wholly-owned land portfolio is free from any

bank debt, and has been purchased with the company’s

own funds.

The Group’s mission is to become the leading provider and

operator of sustainably managed forestry and agricultural

plantations - from project evaluation all the way through

to specific plantation acquisition. It believes that corporate

responsibility is not simply about securing profit for

shareholders and owners, but also involves a positive

contribution to society and the environment.

With local people at the heart of our operations, and sustainable

practices adopted throughout our agroforestry, we are a

positive example of the ‘people, planet, profit concept that is

inspiring modern, sound business practices today.

Appendix - Frequently Asked Questions

It currently has plantation and agricultural projects on three

continents, with operational projects at various stages in

Kenya, Thailand, Malaysia, China, Laos, India, Cambodia, Sri

Lanka, Vietnam and the U.S.

Q4. What are the benefits of owning my own bamboo

plantation?

Please refer to page 14 within this document.

Q5. What is bamboo and what is it used for?

Please refer to pages 7-13 within this document.

Q6. What is the global demand for bamboo per year?

The global market for bamboo and bamboo related

products is expanding at an extraordinary rate. Estimated

to have been worth around USD 25 billion 2012, the 2015

figure is believed to be approximately USD 42 billion.

Demand is expected to rise in line with population growth if

not significantly more once bamboo’s biomass applications

become main stream. Please refer to page 10 within this

document for further information.

Q7. What is the current price for bamboo fibre?

The retail pricing of bamboo fibre is currently USD 900- 3,000

per tonne, according to Alibaba, depending on its decitex

(count grading). Prices are subject to change and dependant

on market dynamics.

Q8. Why is there no guarantee on the bamboo fibre yield

per tree?

Bamboo clumps are growing organisms and thus fibre

yields per bamboo clump may vary. Africa Plantation

Capital Management however is confident of producing

an average of 15 tonnes of fibre per acre. Exact figures,

however, cannot be guaranteed.

Q9. Who will manage my purchase of land and bamboo?

The company that you choose to employ is entirely up to

you. If you wish, Africa Plantation Capital Management is

available to act as a manager. If chosen, you will enter into

a separate Management Agreement with Africa Plantation

Capital Management.

45

Q10. Are there any management fees/sales commissions’

payable?

As your designated plantation manager, Africa Plantation

Capital Management, will cultivate and manage your

bamboo plantation on your behalf. No annual management

fees are payable for the duration of your Management

Agreement. Instead, a harvest cost and sales commission

equating to 30% of the gross harvest sales proceeds will be

applied. As a result, Africa Plantation Capital Management’s

interests are completely aligned with your own.

Q11. How financially stable are Africa Plantation Capital

and Africa Plantation Capital Management?

Africa Plantation Capital and Africa Plantation Capital

Management are cash-based businesses with zero debt.

The APC Group has assets under management worth

approximately USD 650 million. This gives the Group

ultimate strategic and financial freedom, and a strong and

secure financial position. It also owns outright a large and

growing land portfolio, free from any bank debt.

Q12. Why does African Plantation Capital sell bamboo to

third parties?

Africa Plantation Capital made a strategic commercial

decision that entails sacrificing some of the returns on a

proportion of its plantation assets (that which is sold to

owners) in exchange for financial autonomy. The cash

inflow from its forestry plantation model has enabled it to

grow at a rapid pace, both in terms of size and capacity,

without any bank or third party debt.

Q13. Is the land suitable to cultivate the bamboo?

When considering sites for plantations, Africa Plantation

Capital performs a wide variety of tests in order to establish

the ideal conditions for optimal growth. These include soil

and water tests to check for fertility depth, as well as levels

of calcium (Ca), phosphorus (P), potassium (K), nitrogen (N),

and other organic matter. Access to a reliable water supply

is also a major factor. All of its plantations are optimised for

the cultivation of bamboo.

Q14. What if something happens to my bamboo?

Loss or damage to stock could occur for a variety of

reasons. If such an event or events (as listed below) were

to occur, Africa Plantation Capital Management undertakes

to replace the impacted bamboo with other bamboo (the

age of which will be determined by Africa Plantation Capital

Management at its sole discretion) at no extra cost to the

owner, for the entire duration of the agreement.

• Fire

• Lightning

• Wild animal damage

• Cyclone

• Drought

• Vandalism

• Flooding

• Pest and disease

• Theft

• Hail Damage

In order to mitigate all risk factors, rigorous assessment

and due diligence of plantation sites, are conducted. Each

plantation is irrigated, fenced, and has a forestry manager

available 24 hours a day.

Q15. How will I be notified when my bamboo is

harvested and processed??

When the bamboo’s is harvested, the harvest process

is meticulously controlled and recorded throughout. A

Harvest Certificate is given to owners, detailing the amount

fibre produced from their bamboo. This will be checked

and verified by the Processing Manager. At any stage of the

process, owners are welcome to observe or appoint their

own observers to oversee this procedure.

Q16. How long will it take to sell my bamboo fibre

after harvesting?

It takes around 90 days after harvesting to process the fibre

and sell it into the market place.


46

Q17. Can I take physical delivery of my bamboo?

Yes, you can take physical delivery of your bamboo if you so

wish. All costs associated to physical delivery will be borne

by you, the owner.

Q18. Does Africa Plantation Capital Management

underpin the bamboo price?

Africa Plantation Capital Management provides you with a

minimum price guarantee of USD 500 per tonne of fibre

that it sells on your behalf.

Q19. When do I receive a return on my bamboo?

Africa Plantation Capital Management shall, within 30 days

of the collection of the sales proceeds, pay the balance,

after deducting the 30% harvest cost and sales commission,

to the owner’s nominated bank account.

Q20. What is the ownership structure of my

bamboo plantation?

You gain ownership of your bamboo plantation either by

long-term lease, or title deed issued by the Kenyan Ministry

of Land, Housing and Urban Development.

Q21. How do we identify your purchase as distinct from

others owner’s?

You are allocated a unique reference code which is

associated with your specific piece of land and bamboo

clumps. This code is used throughout the term of the

agreement. Your harvested bamboo is individually tagged

with this reference code when weighed on the weighbridge.

Q22. Can I physically go and visit the plantation to see

my bamboo purchase?

Yes, visiting the plantation to see your bamboo is

encouraged, and allows you to develop a greater

understanding and appreciation of how the plantation

operates. We have a dedicated team on hand to arrange

and coordinate the trip.

Q23. What reports will I receive from Africa Plantation

Capital Management and when?

You will receive an annual growth report (Annual Report),

for the duration of the agreement. In addition, owners will

receive annual market trade reports.

Q24. How long is the management agreement for?

The initial Africa Plantation Capital Management agreement

is for a 15 year term. After the end of your term, we would

love for you to renew your contract with us, however, you

are under no obligation to do so and can terminate or

select another management company if you wish.

Q25. What happens if I pass away?

Your bamboo plantation will be treated the same as any

other asset in which you own. Just like your house, the

bamboo plantation is your property and can be passed on

to your children and future generations if you so wish. We

however are not estate planning advisors. While we will try

to be as helpful as we can, we recommend that you consult

with a professional estate planner to determine specifics.

Q26. Can I transfer title deed or lease, and are there any

fees involved?

Yes, you can transfer the title deed or lease. A nominal

administration fee will be charged for transferring the legal

titles.

Q27. In which currency are the returns paid?

Returns will be paid in United States Dollars (USD), to the

bank account provided. All payments will be made net

of all, withholding tax, if any; with all bank charges, fees,

expenses and other taxes borne by you.

Q28. Is there any tax payable?

Even though all returns are paid to you net of all withholding

taxes in USD, we are not tax advisors and legally cannot

offer tax planning advice. Please consult your local trusted

tax professional.


47

Q29. What is the legal structure, and what

documentation will I receive?

Land purchase is for Kenyan citizens only, all other

nationalities will receive a 99-year lease agreement.

For Kenyan citizens you will sign two copies of an Agreement

for Sale, upon completion you will receive a fully executed

copy of the Agreement for Sale along with the title deed

pertaining to the land purchase and a Bamboo Ownership

Certificate.

For all other nationalities you will sign two copies of a

Sales and Purchase Agreement and Lease Agreement,

upon completion you will receive a fully executed copy of

the Sales and Purchase Agreement and Lease Agreement

and a Bamboo Ownership Certificate.

All the above documents will be signed and stamped by

Africa Plantation Capital. The contents of the agreements

shall include items such as the names and addresses of all

owners, the plantation address, the number of bamboo

clumps purchased, and the size and exact parcel of the

land and the unique reference code relevant only to the

individual owner’s bamboo clumps.

If Africa Plantation Capital Management is your chosen

Managing Agent, you will be required to sign two copies

of the Management Agreement, of which you will receive

a personal copy, and one copy will remain with Africa

Plantation Capital Management. All the above documents

will be signed and stamped by Africa Plantation Capital

Management.

Q30. Is Kenya a safe country to invest in?

Please refer to page 38 within this document.


48

49

Disclamer

While Africa Plantation Capital and any other subsidiary and/or associate company of Africa Plantation Capital, collectively referred to as “APC”, makes every effort to ensure that the information provided to you (“You”), pertaining to the forestry and farming projects (“Opportunity”) is accurate and complete, it is provided subject to the following:

• The Opportunity is not a regulated product.

• APC, its authorised representatives and the Introducer do not provide investment advice nor are they licensed with any authority to do so. APC recommends in considering the Opportunity, You seek independent advice from your professional advisers. APC is not a regulated entity and there is no requirement for it to be so regulated as it is not undertaking any regulated activities.

• The information is intended only to assist You in deciding whether You wish to proceed with further investigation of the Opportunity and does not constitute an offer or solicitation or contract, or part of one, in relation to the Opportunity and shall not be so construed.

• You should not rely on statements or representations (oral or written) made by APC’s authorised representatives, the Introducer or any person engaged by APC in whatsoever capacity, in relation to the Opportunity or its value or condition as APC does not in any way guarantee, whether explicitly or implicitly, the accuracy thereof.

• The information contained in this document is purely for information purposes only and no representation or warranty is given as to the accuracy thereof. None of APC’s authorised representatives, the Introducer or any person engaged by APC in whatsoever capacity has any authority to make any representation or warranty, express or implied, in relation to the Opportunity.

• You must satisfy yourself regarding all aspects concerning the Opportunity including (by way of example but without limitation), its suitability, value or condition for your intended purpose, before You enter into any legally binding commitment and/or agreement in relation to the Opportunity by undertaking your own searches, researches, enquiries, surveys and inspections as well as taking all appropriate advice from qualified professionals including lawyers, accountants, forestry managers and surveyors.

• You are responsible for ensuring and verifying that under the laws of your home country, You are not prohibited from taking up the Opportunity. You are responsible for ensuring compliance with all relevant laws, regulations, directives and requirements of your home country. APC does not give any representation to that effect, nor does it assume any responsibility in that regard.

• Photographs are as they appeared at the time they were taken and are illustrative only and not definitive.

• Currency conversions, if given, are illustrative only, and will fluctuate from time to time. It is for You to satisfy yourself regarding the accuracy and “up to date” position of any financial figures and currency exchange rates, bearing in mind that currency exchange rates fluctuate.

• Drawings, measurements and any reference to distances are approximate only and not drawn to scale (unless otherwise specifically stated).

• Any information APC provides may be subject to change from time to time by APC without any notification.

• All information in this document is subject to change from time to time.

• No information in this document is to be copied, modified, distributed or reproduced in whole or in part without the prior written consent of APC.

• As far as applicable laws allow, APC shall under no circumstances whatsoever be liable to You, whether in contract, tort (including negligence), breach of statutory duty, or otherwise for any loss of profit, or any indirect or consequential loss arising from or in connection with any information provided to You in connection with the Opportunity.

50

www.africaplantationcapital.com

AFRICA PLANTATION

For further information, please contact your local office:

Switzerland

Asia Plantation CapitalQuai Gustave-Ador 181207 GenevaSwitzerland

Tel: +41 22 707 7330

Email: [email protected]

Luxembourg

Asia Plantation Capital4 Place de ParisL-2314 Luxembourg

Tel: +352 2648 3841


Kenya

Africa Plantation CapitalCity Mall 3rd Floor Nyali – MombasaKenya

Tel: +254 733 203 084


Africa Plantation CapitalUnit No. 5-9 , 5th floor Top Plaza Kindaruma RoadKilimani, Nairobi

Tel: +254 731 771 141


Malaysia

Asia Plantation Capital21st Floor, Unit 9, G Tower199 Jalan Tun Razak 50400 Kuala LumpurMalaysia

Tel: +603 2181 6790


Asia Plantation Capital25A Jalan Straits View 680100 Johor BahruMalaysia

Tel: +607 207 0276


Thailand

Asia Plantation Capital 153/3 Golden Land BuildingC-3 Floor, Soi Mahardlek Luang 1 Rajdamri Road, LumpiniPathumwan, Bangkok 10330

Tel: +662 684 1082/3 Fax: +662 684 1081


Singapore

Asia Plantation Capital107 Amoy Street, #02-01Singapore 069927

Tel: +65 6222 3386 Fax: +65 6221 2197


Asia Plantation Capital 51 Cuppage Road, #07-11 Singapore 229469

Tel: +65 6632 8566 Fax: +65 6635 3233


China

Asia Plantation Capital 325 Tian Yao Qiao Lu, Unit 2321Jia Hui Square, Xu Jia HuiXuhui District, PuxiShanghai PRC

Tel: +86 021 6432 5059 Fax: +86 021 6125 2030


Hong Kong

Asia Plantation Capital Unit 1803, Jubilee Centre 18 Fenwick Street, Wanchai Hong Kong

Tel: +852 3628 3238 Fax: +852 3621 0693


United Kingdom

Asia Plantation Capital 35 High Street Egham, Surrey TW20 9HL United Kingdom

Tel: +44 20 7060 3633 Fax: +44 20 3411 8293


United Arab Emirates

Asia Plantation CapitalOffice 1102, Level 11, Arenco TowerMedia City, Dubai, United Arab Emirates

Tel: +971 4362 4701


APC

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