1. Forestry South Africa Roundwood Sales Analysis for the 2014 Financial Year Roger Godsmark Forestry South Africa February 2015

2. Analysis of Roundwood Sales and Income Generated 2014

3. Salient Points to Note Tonnage sales of 15.713 mt were 1 239 000 t (+8.6%) higher than in 2013 and 813 000 t (+5.5%) more than the 14.9 mt budget for 2014. In comparison to 2013, all species showed increases in sales. Eucalyptus sales saw the biggest increase - up 990 000 t (+13.7%) – mainly due to a big increase in Euc pulpwood sales. Wattle sales were up 225 000 t (+16.0%) whilst softwood sales increased marginally by 25 000 t (+0.4%). By product, pulpwood sales showed the biggest increase – up 892 000 t (+9.4%). This was wholly attributable to hardwood pulpwood sales which increased by over a million tons (+14.0%). Softwood pulpwood sales actually decreased by 163 000 t (-8.3%). Sawlog sales were 337 000 t (+8.2%) up on 2013 and sales of other products, up 10 000 t (+1.1%). Despite the levy being decreased in 2014 to R1.73/t (from R1.76/t), increased sales resulted in income for the year of almost R26.5m. This was almost R3.0m (+12.6%) more than in 2013 and R704 000 (+2.7%) more than the 2014 budget. Tonnage sales started to increase dramatically from the 2 nd half of 2013. This trend continued during the course of 2014.

4. Roundwood Sales by Species 2014 Total Sales – 15 713 000 tons

5. Roundwood Sales by Product 2014 Total Sales – 15 713 000 tons

6. Roundwood Sales by Levy Category 2014 Total Sales – 15 713 000 tons

7. Pulpwood Sales by Species 2014 Total Sales – 10 374 000 tons

8. Sawlog Sales by Species 2014 Total Sales – 4 438 000 tons

9. Other Roundwood Sales by Species 2014 Total Sales – 902 000 tons

10. Sales Comparisons 2014 vs. 2013 Product20132014Diff tonsDiff % Sawlogs: Soft 3 666 7753 821 046154 2714.2% Sawlogs: Hard 434 145616 955 182 81042.1% Sawlogs 4 100 9204 438 001337 0818.2% Pulpwood: Soft 1 951 3551 788 472 -162 883-8.3% Pulpwood: Hard 7 530 2958 585 329 1 055 03414.0% Pulpwood 9 481 64910 373 802892 1539.4% Mng: Timber : 258 853271 29012 4374.8% Poles :Soft 102 615112 85310 23810.0% Poles: Hard 367 894315 067-52 827-14.4% Poles 470 510427 920-420 590-9.1% Woodchips: Soft 120 175123 3893 2142.7% Other: Hard 42 01578 95836 94387.9% Grand Total 14 474 12215 713 3591 239 2378.6%

11. Roundwood Sales by Contributor 2014 Total Sales – 15 713 000 tons

12. Roundwood Sales per Month 2014 by Species Highest sales-March 1 398 000 t Lowest sales-December 1 189 000 t

13. Roundwood Sales per Month 2014 by Product Sales in 2014 1 239 000 t (+8.6%) higher than in 2013 and 813 000 t (+5.5%) more than budget

14. Roundwood Sales per Month 2014 Budget vs. Actual Highest surplus-March + 156 000 t Highest deficit-December - 53 000 t

15. Contributions Generated by Levy Category - 2014 Total Income Generated – R26 481 000

16. Levy Income Comparison 2014 Budget vs. Actual Income in 2014 R 2 953 000 (+12.6%) higher than in 2013 and R704 000 (+2.7%) more than budget

17. Analysis of Roundwood Sales and Income Generated 2002 * - 2014 * Year in which FSA formed

18. Roundwood Sales per Year 2002 - 2014 Full levy tonnage increased by 8.9% between 2013 & 2014 Lower levy tonnage increased by 3.3% over same period

19. Sales Comparisons per Species 2002 - 2014

20. Roundwood Sales 2002 - 2014 Eucalyptus

21. Roundwood Sales 2002 - 2014 Softwood

22. Roundwood Sales 2002 - 2014 Wattle

23. Roundwood Sale Comparisons per Species 2014 vs. 2013 Up 225 000t +16.0% Up 990 000t +13.7% Up 25 000t +0.4% Overall increase of 1 239 000 000t or +8.6%

24. Sales Comparisons per Product 2002 - 2014 Pulpwood growth over period+ 53 000 tons + 0.5% Sawlog growth over period+ 1 151 000 tons + 35.0% MT & Other growth over period + 902 000 tons + 29.4%

25. Roundwood Sales 2002 - 2014 Pulpwood

26. Roundwood Sales 2002 - 2014 Sawlogs

27. Roundwood Sales 2002 - 2014 Mining Timber & Other

28. Roundwood Sale Comparisons per Product 2014 vs. 2013 Up 10 000t +1.1% Up 892 000t +9.4% Up 337 000t +8.2% Overall of increase 1 239 000t or +8.6%

29. Levy Income Generated per Year 2002 - 2014 Levy income in 2014 R2 953 000 (+12.6%) more than in 2013 and R704 000 (+2.7%) more than budget

30. Levy Income Comparisons 2009 - 2014 Surpluses have only occurred in 3 of the last 6 years. Accumulated deficit over period – R1 765 000

31. Sales Tonnage Comparisons 2009 - 2014 Surpluses have only occurred in 3 of the last 6 years. Biggest deficit in 2012 – 865 000 tons

32. Sales Tonnage per Contributor 2014 vs. 2013 Up 303 000t +2.6% Up 74 000t +13.6% Up 861 000t +35.2% Overall increase of 1 239 000t or +8.6%

33. Income Generation per Contributor 2014 vs. 2013 Up R1 184 000 +6.4% Up R165 000 +18.8% Up R1 604 000 +39.0% Overall increase of R2 953 000 or +12.6%