Teak projections
The following charts and projections have been constructed to give clear and precise
information about our investments. These projections are specific to our plantations
and our siviculture practices.
Teak (Tectona Grandis)
Of the many species of tropical rainforest hardwoods that are growing on the tree farms, Teak is the only species for which sufficient
historical data exists to allow us to make reasonably detailed projections of potential harvests and yields.
The following projections will help illustrate the likely harvest schedule and yields from growing 200 Teak trees on our plantations.
When tree farming first began, projections were based on historical price information and growth and yield data from other plantations.
The tables below reflect the actual results from our first thinnings and the original historically-based data for the subsequent
thinnings and final harvests.
If, after you review these projections, you have any questions about us growing trees for you, please feel free to call or email us.
The harvest dates are for projections only, the actual dates will be up to you, the tree owner. We do not harvest any of your trees
without express permission to do so.
Teak (Tectona Grandis) projections – 200 trees
Tree age 7 9 11 13 15 17 19 21 23 25
Number of trees
40 58 24 20 12 10 10 8 6 12
harvested
Marketable wood per
28.56 82.66 179.68 331.72 551.21 646.88 861.25 1106.28 1381.88 1688.06
tree – board feet
Care and
£56 £272 £280 £494 £564 £632 £962 £1,130 £1,214 £3,392
management fee
Net proceeds of
£864 £4,252 £4,376 £7,726 £8,832 £9,908 £15,058 £17,718 £19,018 £53,128
each harvest
Cumulative Total £864 £5,116 £9,492 £17,218 £26,050 £35,958 £51,016 £68,734 £87,752 £140,880
Table 1: This table shows the projected growth, harvests and yields from planting 200 Teak trees. These projections are based upon a conservative
lumber price of £0.55 increasing at an annual rate of 7% for the subsequent thinnings and the final harvest.
The Care and Management fees (6%) are the fees we charge for growing and managing your trees, should you so choose us to do so.
Harvests can be performed for any number of trees at any time you choose.
ETHICAL FORESTRY Ltd, Bristol and West House, Post Office Road, Bournemouth, Dorset BH1 1BL Tel: 0800 075 3010 Fax: 01202 366913
Email: enquiries@ethicalforestry.com www.ethicalforestry.com
Company registration no. 6455149. Incorporated in England and Wales.

Projection charts
The following charts have been produced for you to clearly see what your projected returns could be. The projections in these charts are based upon a
timber price increase of 7% p.a. Timber prices have been exceeding 7% p.a. due to the increased demand. Costa Rica has recently had to start
importing timber as local demand outstrips supply. For more details on how the projections are calculated, please see the detailed notes. Past
performance of timber prices does not guarantee future values. Ethical Forestry does not give investment advise, Investments may go down as well as
up and you should be aware of all the risks involved, however small.
Tree age 7 9 11 13 15 17 19 21 23 25
Marketable wood per tree
28.56 82.66 179.68 331.72 551.21 646.88 861.25 1106.28 1381.88 1688.06
– board foot
Care and management fee £56 £272 £280 £494 £564 £632 £962 £1,130 £1,214 £3,392
Net proceeds of each
£864 £4,252 £4,376 £7,726 £8,832 £9,908 £15,058 £17,718 £19,018 £53,128
harvest
Cumulative total £864 £5,116 £9,492 £17,218 £26,050 £35,958 £51,016 £68,734 £87,752 £140,880
Tree value £23 £78 £194 £411 £783 £1,054 £1,602 £2,356 £3,372 £4,710
Investment value £4,324 £12,595 £23,717 £39,627 £59,907 £71,625 £90,170 £108,597 £125,788 £140,880
INDIVIDUAL TREE VALUE
Return on investment -64% 5% 98% 230% 399% 497% 651% 805% 948% 1074%
CUMULATIVE HARVEST VALUE
CUMULATIVE HARVEST VALUE INDIVIDUAL TREE VALUE
£150,000 £140,880 £5,000
£10,000 £4,710
£120,000 £4,000
£8,000
£3,372
£90,000 £87,752
£3,000
£6,000
£68,734 £2,356
£60,000 £51,016 £2,000
£4,000
£1,602
£35,958
£1,054
£30,000 £26,050
£17,218
£1,000
£2,000 £783
£9,492 £411
£5,116 £78 £194
£864 £23
£0
£0 £0
£0
7
7 9
9 11
11 13
13 15
15 17
17 19
19 21
21 23
23 25
25 77 99 11
11 13
13 15
15 17
17 19
19 21
21 23
23 25
25
TREE AGE TREE AGE
CUMULATIVE HARVEST VALUE – Shows the projected cumulative totals from INDIVIDUAL TREE VALUE – Shows the projected value of each tree at specific
the returns of your investment. e.g. By year 17 your projected returns should years throughout your investment. These projections are based on a timber price
be £35,958. (You would have received £864 in year 7, £4,252 in year 9, £4,376 increase of 7%. e.g. At year 13 your trees are projected to be worth £411 each and
in year 11, £7,726 in year 13, £8,832 in year 15 and £9,908 in year 17). at year 21 £2,356 each. Investment Value
MARKETABLE WOOD PER TREE
MARKETABLE WOOD PER TREE INVESTMENT VALUE
2000
4000 £160,000
MARKETABLE TIMBER - - BOARD FOOT
MARKETABLE TIMBER BOARD FOOT
£140,880
1688
£125,788
3000
1500 1382 £120,000 £108,597
1106 £90,170
2000
1000 861 £80,000 £71,625
£59,907
646
551
£39,627
500
1000 £40,000
332 £23,717
180 £12,595
29 83 £4,324
00 0
£0
7
7 9
9 11
11 13
13 15
15 17
17 19
19 21
21 23
23 25
25 7
7 9
9 11
11 13
13 15
15 17
17 19
19 21
21 23
23 25
25
TREE AGE TREE AGE
MARKETABLE WOOD PER TREE – Shows the projected volume of timber INVESTMENT VALUE – Shows the projected returns if your whole investment
produced from each of your trees at different stages of your investment. is cashed in early. e.g. If you chose to harvest your remaining trees in year 15, your
e.g. A 13 year old tree is projected to yield 332 board foot of marketable timber. projected returns from the previous harvests AND the year 15 harvest (of all your
remaining trees) would be £59,907.

RETURN ON INVESTMENT
INDIVIDUAL HARVEST VALUES
INDIVIDUAL HARVEST VALUE RETURN ON INVESTMENT
£60,000 1200%
1200%
£53,128 1074%
£50,000 1000%
1000% 948%
805%
800%
£40,000
651%
600%
497%
£30,000
399%
400%
£20,000 £19,018 230%
£17,718
£15,058 200%
98%
£10,000 £8,832 £9,908 5%
£10,000 £7,726 0%
£4,252 £4,376 0%
£864
£0
£0 -200% -64%
77 99 11
11 13
13 15
15 17
17 19
19 21
21 23
23 25
25 77 99 11
11 13
13 15
15 17
17 19
19 21
21 23
23 25
25
TREE AGE TREE AGE
INDIVIDUAL HARVEST VALUE – Shows the projected values of each harvest. RETURN ON INVESTMENT – Shows the projected returns on investment.
e.g. Your harvest in year 13 is projected to return £7,726 and your harvest in e.g. If you chose to harvest your remaining trees in year 17, your projected
year 21 is projected to return £17,718. percentage return would be 497% after your initial £12,000 has been
deducted.

Notes to Teak projections
The projections in these tables, and the explanatory notes, are 5. The useable height and diameter growth estimates are based upon
provided for you to better understand the process of growing growth rates obtained in our plantations, plantations in the
and harvesting trees. While we believe these estimates of growth, Caribbean and Central America. Our actual growth rates exceed
costs and yields to be fair and reasonable, we cannot guarantee the these projections, we have removed 1.5 inches in diameter and
future value of your trees, nor the lumber proceeds you will receive one third in height to allow for wastage and a more simple
from the harvest. We encourage you to seek the counsel of an calculation to be used.
independent professional who can evaluate the accuracy of these
6. Our estimated volume per tree is calculated by multiplying the
projections.
diameter of the tree x the diameter of the tree (diameter2) times the
1. The projections above are based upon a conservative lumber price usable height of the tree. These projections are based upon the
of £0.55 per board foot for the first thinning, increasing at an annual volume of the trunk and include the additional wood volume that
rate of 7% for the subsequent thinnings and the final harvest. may be obtained from the larger branches in the later harvests.
It is important to note that although the young teak lumber from the 7. The amount of marketable wood per tree is stated in board feet,
first two thinnings is quite beautiful and wonderful for the indoor a standard measure of wood used. One board foot of wood is one foot
furnishings market , the majority of the Teak from the first two thinnings square by one inch thick (1'x 1' x 1"). There are 12 board feet in a cubic
is not yet weather resistant, it is that weather resistance of the older foot of lumber and 424 board feet in a cubic meter of lumber.
teak that gives teak its very high value on the international market,
The estimated amounts of marketable wood are based upon the
hence we have chosen to use a conservative figure.
estimated volume per tree in cubic feet, multiplied by 12 to obtain
On the other hand, the prices projected for the older teak for the the number of board feet, and then reduced by 30% to allow for
subsequentthinningsandfinalharvest,£0.55perboardfootincreasing processing waste, which is sawing losses and damage to the logs
at an annual rate of 7%, may well be quite low. while being harvested, transported and processed. We are likely
According to the international Tropical Timber Organisation the to achieve far more efficient yields than those projected since
wholesale price for Teak stands at £2.30 per board foot. everything is milled right on the farms, using the latest thin-kerf,
2. The projections in Table 1 are based upon the price of Teak increasing high yield bandmill technology.
at 7% per year. However, according to the ONF (Costa Rican National 8. Gross harvest proceeds – The estimated gross value of the lumber
Forestry Office) prices for Teak are increasing at a rate far higher. from each harvest is arrived at by multiplying the estimated value per
Costa Rica has recently had to start importing timber as local tree times the number of trees harvested in that thinning or harvest.
producers cannot keep up with the demand.
9. Care and Management Fees are the costs of harvesting your trees,
3. Both the timing and number of trees harvested are your choice,
milling your logs into marketable lumber, drying your lumber, care,
However, we will advise you a recommended course of action
maintenance and sale of your trees. If someone-else is harvesting/
based on a combination of our experience and the latest published
managing your trees, these fees will not apply. However a 6% charge
silviculture practices derived from years of experience in plantation
would be applied at harvest as we would need to supervise the
management.
harvest to ensure no damage is caused to others trees.
Our professional foresters, who monitor the growth profiles of your
trees in the plantations, will report on their condition and help you 10. Thereiscurrentlya15%WithholdingtaxappliedbytheCostaRican
determine the actual harvest dates and number of trees harvested. Government on all money taken out of Costa Rica for which you are
liable. This is taken at source and NOT accounted for in the projections.
Several additional months may be required after any thinning or
You should speak to your financial advisor for legitimate means of
harvest to mill, dry and grade your lumber and prepare it for the
offsetting this against your UK Tax.
international export market if it is to be sold as boards. An additional
year or more may be required for the earliest thinnings, because
young tropical hardwoods are less known, or even unknown, in the
world markets.
4. The most likely period of mortality or cull loss is during the first
year after field planting. Our foresters will examine your trees
frequently during this period and will promptly replace, at no charge
to you, any tree that is not healthy or in any way not growing
properly. We will also replace any tree that in our opinion is not
growing properly for the next 2 years. Once the trees are past approx
3 years, the mortality and cull loss will essentially be 0% because
if a tree is lost, we can simply mill it into lumber to be sold.
ETHICAL FORESTRY Ltd, Bristol and West House, Post Office Road, Bournemouth, Dorset BH1 1BL Tel: 0800 075 3010 Fax: 01202 366913
Email: enquiries@ethicalforestry.com www.ethicalforestry.com
Company registration no. 6455149. Incorporated in England and Wales.