Ann: TFS launches inaugural native Australian San, page-3

re: Ann: TFS launches inaugural native Austra... Hi NZsly,

Very interesting. The new offering is aimed at the MIS sector which TFS has openly stated is very profitable for them (and the grower of sandalwood).

This Aussie S/W project is in its early days and is unlikely to sell the full 1000ha this year. However when they do fill the quota, this will represent an additional 16 mill for TFC books on a annual basis.

This further confirms TFS is VERY confident in filling Indian sandalwood plantation annual allocations with wholesale investors (funds / institutions / ultra high net wealth individuals). They also obviously see opportunity to fill the MIS void left by companies with poor models / product offerings. In effect the strong (TFS) has survived and is growing on the back of other failures.

Entering into the Aussie SW sector also confirms TFS has a wider growth / vertical integration strategy. Effectively TFS is aiming to become THE global supplier / monopoly on Aussie and Indian sandalwood. They will effectively become the much needed single desk operation for sandalwood raw materials and product exports from Australia driving improved returns for all levels of the industry.

The Aussie s/w industry must see this development as significantly positive.

SD