Crippling Effect of Survey Data

1. ©2016, Forest2Market, Inc.
FOREST2MARKET DO BRASIL
BUSINESS MODEL

2. ©2016, Forest2Market, Inc.
AGENDA
Forest2Market do Brasil business model
Benefits: Why benchmarks?
Product: A comprehensive view of the market
Our promise: Security, confidentiality
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3. ©2016, Forest2Market, Inc.
OUR BELIEF The only way to achieve a true measure and
understanding of the market is to collect transactional data.
AN EXPONENTIALLY BETTER BUSINESS MODEL Transaction data is
the foundation of all our products and services.
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4. ©2016, Forest2Market, Inc.
FOREST2MARKET DO
BRASIL
A Brazilian company managed and staffed by experienced and well-
respected Brazilian forestry supply chain experts
Leveraging our expertise by adapting parent company’s benchmark
process for the Brazilian forest products industry
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5. ©2016, Forest2Market, Inc.
OUR TIMELINE
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6. ©2016, Forest2Market, Inc.
CREDIBLE BENCHMARKS:
BENEFIT
IDENTIFY
Market & supply chain opportunities
MEASURE
Effects of your decisions against a consistent gauge of market
performance
ESTABLISH
Effective feedback that elevates staff to a higher level of performance
STRENGTHEN
Trading relationships and stakeholder trust
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7. ©2016, Forest2Market, Inc.
CREDIBLE BENCHMARKS:
FEATURES
Results delivered monthly
Mill-by-mill comparative based on point of delivery
Customized report for each participating company
Small market areas, customer regions and total coverage area
summaries
Products
• Pine/soft pulp
• Hardwood/ Eucalyptus pulp
• Sawlogs & Plylogs
• Fuel and fuel chips
• Mill chips
R$ per m3 – weighted average by ton
Slide 7

8. ©2016, Forest2Market, Inc.
CREDIBLE BENCHMARKS:
FEATURES
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Stumpage Harvest Freight Other Total
Mill 1 18.21$ 17.21$ 18.06$ 1.25$ 54.73$ 56
Mill 2 19.12$ 18.98$ 19.10$ 1.33$ 58.53$ 60
Mill 3 20.16$ 20.14$ 20.13$ 1.40$ 61.83$ 63
Mill 4 22.14$ 20.55$ 22.71$ 1.55$ 66.95$ 71
Mill 5 25.12$ 21.73$ 23.23$ 1.76$ 71.84$ 73
Mill 6 27.88$ 22.80$ 23.74$ 2.10$ 76.52$ 74
Customer 28.45$ 22.98$ 24.26$ 2.45$ 78.14$ 76
Mill 8 28.66$ 23.01$ 25.29$ 2.88$ 79.84$ 79
Mill 9 28.96$ 23.33$ 25.81$ 2.89$ 80.99$ 81
Mill 10 29.10$ 23.45$ 28.39$ 2.98$ 83.92$ 89
Mill 11 30.15$ 23.98$ 35.10$ 3.19$ 92.42$ 110
Mill 12 30.19$ 24.69$ 38.19$ 3.87$ 96.94$ 119
Mill 13 31.98$ 24.77$ 45.42$ 4.10$ 106.27$ 142
Mill 14 34.34$ 24.98$ 49.03$ 4.15$ 112.50$ 153
Weighted Avg 26.75$ 22.33$ 28.46$ 2.56$ 80.10$ 81
Freight
(km)
Delivered Pine Pulpwood
Southeast Parana Region 4
January 2013

9. ©2016, Forest2Market, Inc.
CREDIBLE BENCHMARKS:
FEATURES
Results delivered
monthly
Stumpage prices
Markets to be
determined
Products
• Pine/soft pulp
• Hardwood/ Eucalyptus
pulp
• Sawlogs & plylogs
R$ per m3 – weighted
average by ton
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10. ©2016, Forest2Market, Inc.
CREDIBLE BENCHMARKS:
FEATURES
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Stumpage Micromarket
18.21$ Area 1 - Metro de Curituba, Sudesta, Centro Oriental
19.12$ Area 2 - similar specificity
20.16$ Area 3 - similar specificity
22.14$ Area 4 - similar specificity
25.12$ Area 5 - similar specificity
27.88$ Area 6 - similar specificity
28.45$ Area 7 - similar specificity
28.66$ Area 8 - similar specificity
28.96$ Area 9 - similar specificity
29.10$ Area 10 - similar specificity
30.15$ Area 11 - similar specificity
30.19$ Area 12 - similar specificity
31.98$ Area 13 - similar specificity
34.34$ Area 14 - similar specificity
26.75$ Average all micromarkets
Stumpage Price by Micromarket

11. ©2016, Forest2Market, Inc.
REGION MAP
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12. ©2016, Forest2Market, Inc.
CREDIBLE BENCHMARKS:
PROMISE
QUALITY
Results cannot be manipulated; all data is rigorously validated.
ACCURACY
Results are volume weighted; every valid transaction is counted.
CONFIDENTIALITY
Customers’ data is secure; results are disseminated anonymously.
COMPLIANCE
Forest2Market do Brasil maintains its neutrality and all results adhere
to Brazilian competition laws.
Slide 12

13. ©2016, Forest2Market, Inc.
CONTACT
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Marcelo Schmid
Manager, Forest2Market do Brasil
Marcelo.Schmid@forest2marketdobrasil.com.br
Forest2Market do Brasil
Euclides Bandeira, 1635
Centro Cívico, Curitiba - Parana
Brazil
8050-020
www.forest2marketdobrasil.com.br