Important Note © New Forests 2015. This presentation is the property of New Forests and is intended for the sole use of its clients, consultants, and other intended recipients and should not be forwarded to any other person. Contents herein should be treated as confidential and proprietary information. This material may not be reproduced or used in any form or medium without express written permission. The information contained in this presentation is of a general nature and is intended for discussion purposes only. The information does not constitute financial product advice or provides a recommendation to enter into any investment. This publication has been prepared without taking account of any person’s objectives, financial situation or needs. Before acting on this information, you should consider its appropriateness having regard to your objectives, financial situation or needs. Past performance is not a reliable indicator of future performance. You should consider obtaining independent professional advice before making any financial decisions. The terms set forth herein are based on information obtained from sources that New Forests believes to be reliable, but New Forests makes no representations as to, and accepts no responsibility or liability for, the accuracy, reliability or completeness of the information. Except insofar as liability under any statute cannot be excluded, New Forests, including all companies within the New Forests group, and all directors, employees and consultants, do not accept any liability for any loss or damage (whether direct, indirect, consequential or otherwise) arising from the use of this information. The information contained in this presentation may include financial and business projections that are based on a large number of assumptions, any of which could prove to be significantly incorrect. New Forests notes that all projections, valuations, and statistical analyses are subjective illustrations based on one or more among many alternative methodologies that may produce different results. Projections, valuations, and statistical analyses included herein should not be viewed as facts, predictions or the only possible outcome. Before considering any investment, potential investors should conduct such enquiries and investigations as the investor deems necessary and consult with its own legal, accounting and tax advisors in order to make an independent determination of the suitability, risk and merits of any investment. New Forests Advisory Pty Limited (ACN 114 545 274) is registered with the Australian Securities and Investments Commission and is the holder of AFSL No 301556. New Forests Asset Management Pty Limited (ACN 114 545 283) is registered with the Australian Securities and Investments Commission and is an Authorised Representative of New Forests Advisory Pty Limited. New Forests Inc. has filed as an Exempt Reporting Adviser with the Securities and Exchange Commission.

2

•  Founded in 2005 to manage institutional forestry investments

•  Investing in both the productive use and long-term stewardship of forests and land

•  More than USD 2 billion in assets under management including over 600,000 hectares of forests, rural land, and conservation investments across the Asia-Pacific region and the US

•  Head office in Sydney; over 45 employees in Australia, New Zealand, Singapore, and US

3

About New Forests

4

New Forests’ Vision

Focused on managing our clients’ assets with a view that institutional investment can drive both the productive use and long-term stewardship of forests and land.

Long-term Vision

Seeking to deliver investment outcomes with shared value—where we not only execute investments that generate excellent returns to our clients but also enrich the landscapes and communities where we operate.

Shared Value for Clients, Environment,

and Society

Dedicated to the efficient and productive use of the more than 600,000 hectares of forests and land under our management. Our focus on environmental productivity helps alleviate pressure on native ecosystems while sustaining the production of goods.

Investment Solutions at Scale

5

•  Responsible Investment Policy – New Forests is one of the only forestry investment managers operating with a Responsible Investment Policy.

•  Corporate sustainability program - coordinates responsible investment activities while ESG specialists are embedded in each fund’s management team.

6

Responsible Investment Adding value and mitigating risk through a structured focus on ESG

•  Key features of our responsible investment approach include: o Signatory member of the Principles for Responsible Investment (PRI) since 2010 o Company-wide Social and Environmental Management System with annual auditing o Sustainability targets and use of reporting metrics for material impacts o Membership and involvement in key industry groups o Quarterly ESG reporting integrated into fund reports o New Forests’ Annual Sustainability Report shared publicly for access by all

stakeholders

7

Environmental solutions and benefits

Environmentally Sound

•  Standards and systems we adhere to in order to provide best-practice guidance and credible third-party assurance of activities within our investments:

o ISO 14001 Environmental Management Systems o IFC Performance Standards o Forest Stewardship Council Certification

•  Our conservation and stewardship projects target wildlife management, promotion of high conservation values, and collaborations to improve landscape-level outcomes.

•  Highly productive timber plantations and conservation projects are an essential part of the solution to global environmental challenges.

8

Social license is good business •  New Forests seeks to support the welfare of communities

and individuals who may be directly impacted by our investments, including employees, workers, and local communities.

•  Stakeholder engagement and collaborations support the stability and value of our investments. Real assets are part of landscapes and communities, and New Forests works with government, NGOs, advocacy groups, and the people who live within and near our investments to ensure our stewardship programs reflect stakeholder objectives.

•  We support property managers and portfolio companies in managing social and community issues to find positive outcomes for our investments and the people who work and live in the communities affected by our investments.

Socially Responsible

9

•  We are motivated by the belief that institutional investment can drive both the productive use and long-term stewardship of forests and land.

•  We aim to create shared value for our clients, environment, and society. o Seeking to overcome environmental constraints through

supply chain approaches, a focus on productivity, and research and development

o  Incorporating ecosystem services as key considerations of our management strategies

o Taking a rational approach to forest and land management that accounts for ESG risks and opportunities

o  Innovating investment products that meet client portfolio needs and provide solutions to environmental challenges

ESG Impacts and Creating Shared Value Creating shared value means aligning the interests of our clients with the needs and challenges facing society and the environment.

10

11

The first institutional timberland fund dedicated to investing in Southeast Asia •  Tropical Southeast Asia is an emerging market for

sustainable plantation forestry investment by institutional investors.

•  Our Southeast Asian investment strategy focuses on certified plantation forestry with an emphasis on technological and silvicultural improvements and a rigorous approach to environmental and social values and good governance.

•  Clients include pension funds and development banks.

•  Tropical Asia Forest Fund o  USD 170 million o  Final close in 2013 and currently being invested

Tropical Asia Forest Fund Sustainable forestry in emerging markets of Southeast Asia

Assets in Southeast Asia

12

•  TAFF acquired a majority stake in a Malaysian plantation growing mostly Acacia mangium hardwood for both pulpwood and solid log markets.

•  While the asset was already FSC-certified, New Forests addressed major certification risks through a rigorous social and environmental program following acquisition.

•  Improved management is a must in order to deal with S&E risks at the investment level. However, managing these risks requires the private sector to tread carefully and take on responsibilities to address historical failures.

13

Example Investment – Malaysian Plantation Improving plantation company management to improve asset quality while bringing a dedicated focus to ESG management

Regional ESG Issues •  The current political landscape for forestry

o Highly diverse region o The political ecology – stemming from colonial rule or conflict o Lack of clear legal framework o Unclear tenure o Conflicting land claims o Competing land uses o Corruption

•  The potential future o The demand side regulations pulling legal and legislative change, e.g. US Lacey, EU

TR, Australia ILPA o Consumer attention to product sourcing and clean supply chains o Private capital and financing requiring adherences to best practice

Lack of land reform, clear land tenure, and regional development leads to inefficient land use, land grabbing, squatting, and social tensions

15

Problem: Community engagement is complex and legacy issues create challenges; communities are often ignored and lack power Management Solutions •  Addressing land encroachment by outsiders

and supporting boundary demarcation and surveys

•  Addressing incomplete prior process of consultation and engagement

•  Social baseline study – used local NGO for study and now training and bringing on local graduates for phase two

•  Creation of CSR committee with company and gov’t agency partner

•  Worker health, safety, training, and development

•  Long-term opportunities through engagement, e.g. outgrower schemes and community partnerships

Social Considerations

16

Problem: Production and use of natural resources outcompetes conservation and stewardship Management Solutions •  Clarify land tenure and ownership to enable

more long-term perspective •  Add value from certification and supply

chain incentives – better market access •  Seek opportunities to value ecosystem

services •  Operational management improvements o  Wildlife and high conservation value area

surveys and management o  Monitoring programs (camera “trap” at

left) o  Reduced impact logging techniques o  Better roading planning o  Protection of conservation areas and

buffers •  Investments can also provide opportunity to

go above and beyond and support regional conservation goals

Environmental Management

Example Environmental Metrics Reported 2014

Sources: New Forests 2014 Sustainability Report 17

IRIS Metric Metric ID Units Tropical Asia Forest Fund

All New Forests Funds

Restoration and Conservation Activities

Protected Land – Permanent PI3924 ha 57 50,514

Protected Land – Total PI4716 ha 383 129,914

Land Reforested PI6885 ha 120 398

Streams Restored PI4907 km - 113

Ecological Restoration Management Area PI9556 ha - 57,807

Certified Forestry and Production

Certified Area New Forests ha 19,169 395,316

Certified Timber Products Produced New Forests tonnes 334,000 292,1317

Trees Planted - Commercial PI4127 ha 1,975 8,983

Carbon Storage and Credits

Carbon Offsets Issued New Forests tCO2e 791,060

Carbon Stored – Plantations New Forests tonnes 438,174 24,868,374

CO2e Stored - Plantations New Forests tCO2e 1,606,638 92,183,638

18

Investing in the Future of Forestry •  While providing institutional investment opportunities with attractive risk-

return profiles, New Forests contributes to long-term investment in renewable resources and the conservation and protection of ecosystem services associated with forests and land.

•  Impact investing requires the intention to generate positive social and environmental impacts – that idea is complementary to responsible investment in forestry.

•  Management and use of forest resources supports economic, environmental, and social functions of forests and provides for the long-term viability of the resource – investment returns come from a combination of income and asset appreciation.

•  Measuring and reporting on ESG impacts is part of our commitment to transparency and responsible investment.

19

Three Take Away Points for Discussion

1.  Impact investing does take place across asset classes – it’s about a focused approach to how we manage investments for S&E outcomes.

2.  Understanding S&E impacts should be a key part of any responsible investment approach. Managing S&E risks may yield additional commercial and shared value opportunities.

3.  Themed investments or investments in high-impact sectors can address key challenges facing environment and society, e.g. climate change, biodiversity loss, rural development, and the need the for more fuel, fibre, and food.

20

21