Hi all.Here is an extract from the Beyond Carbon flyer being...

Hi all.

Here is an extract from the Beyond Carbon flyer being sent to institutional investors if not everyone has seen it. They are targeting 500h in sales by December 2009!! I assume cash will be received at planting in May / June.

BEYOND CARBON
“A Pioneering Forestry Investment Project focused on Climate, Community and Bio-diversity”
TFS INDIAN SANDALWOOD PROJECT 2009
PROJECT SUMMARY
About this Project
Location Ord River Irrigation Area (ORIA),
Northern Western Australia
Product Santalum album (Indian Sandalwood)
Target Project Size 500 ha
Lot Size 10 ha
Target Raising A$50 million
Life of Investment 14 Years
Minimum Investment A$1,000,000 excluding GST (10 ha)
Offer Close Date 30 December 2009
Planting Date Following winter planting season
(May/June 2010)

IRR (before Tax)
Indicative range of outcomes 11.26% - 31.3%
Mid Case 23.74%
Investment Multiple
(pre-tax return / initial investment)
Mid Case
11.2 x
Years to Positive Cumulative Cashflow 7 years

WHY INVEST IN BEYOND CARBON?
Traditional forestry produces logs that are exposed to large swings in price controlled through the supply chain. This
investment is different;
• Income commences in Year 4. The product on offer is not a start up forest. It is a carefully blended mix of mature
forests/new plantings with revenues commencing in Year 4.
• Vertical integration. BEYOND CARBON will not sell logs, it will provide unique refined timber extracts that are
supported with marketing strategies that are competitively sought by brands as a point of differentiation. TFS group
is vertically linked into the global marketplace and has the world’s most advanced in house processing capability for
sandalwood timber and extensive contacts with end brands.
• Pioneering Climate mitigation model. The BEYOND CARBON project will invest funds into Climate Mitigation and
has pioneered a new protocol that aims to create an annualised carbon bank (sequestering from the atmosphere)
of 26,000 tonnes per annum, which will help mitigate the impact of climate change caused through greenhouse
gases.
• Manager’s Track record. TFS group has the world’s largest reserves of Indian Sandalwood. It cemented its status
as world sandalwood leader when it acquired the world’s largest processor and marketer of sandalwood oil and byproducts,
Mt Romance, differentiating it from other forestry groups as it has now become a major production and
distribution point for refined forestry extracts.
• Natural Investment hedge. Forestry is an investment that provides any portfolio with a natural hedge against
property and shares (as it has a historic negative correlation in terms of performance).
IRR of >20 % per Annum
A minimum investment size of $1,000,000 will secure 8ha of freehold land, on which will be planted 7ha of sandalwood
forest (+1ha for infrastructure). In addition 3ha of leasehold mature sandalwood forests will be purchased that will
allow revenues to commence in Year 4. TFS will aim to procure these 3ha of mature trees over an equal spread of 7
years, from 4 year old trees to 10 year old trees.
There are no ongoing annual fees to the investor, all maintenance and management fees as well as insurance costs for
the life of the project are included in the establishment fee.
Returns from the sale of Carbon Credits have not been included in the investment returns. There is also potential to
add to the investment returns from some of the by-products, (resin can be extracted from the spent charge, TFS has
sold small amounts for $100/kg and looking to expand this market).

Corporate Social Responsibility (CSR)
World Innovator of Ethical and Environmental Standards.
In 1998 TFS group began to develop and build a supply solution around the world’s first accredited ISO 14001
(environmental) sandalwood oil.
In 2003 TFS group presented a unique template to deal with Indigenous equity/IP in the supply chain to Estee Lauder
Group INC. (In Top 5 global brands as at 2006 – Global Insight Report). This resulted in the launch of the Songman Circle
of Wisdom, which was a new protocol designed to protect the Intellectual Property of indigenous people in relation to
natural ingredients.
In 2007 the United Nations acknowledged TFS group for world’s best practise.

Natural Origin Recognition Protocol
TFS group is taking a leadership role in CCB (Climate, Community & Bio-Diversity) in the beauty sector. The comparative
benefits of replacing the current supply of an endangered rainforest with a plantation are well known. While the
environmental benefits (CLIMATE) are compelling, TFS group grappled with how it may best assist traditional Indian
communities overcome the loss of forest habitat (BIO-DIVERSITY) revenues and resources (COMMUNITY) that is the
legacy left for future generations in this third world environment due to over exploitation of Santalum album.
TFS group drew a working team together, spearheaded by the founder of Mt Romance Stephen Birkbeck and Professor
Hircock from the USA (CSR advisor to Estee Lauder). The outcome was to recognize this Indigenous species (Santalum
album) link to it’s traditional owners. This approach is being pioneered as a new global initiative (Natural Origin
Recognition Protocol).
The TFS group intends to launch the NORP project through Beyond Carbon and are proposing a royalty of 1% of initial
funds subscribed as well as a 1% royalty on all sandalwood oil sales derived from Beyond Carbon. An initial sum of
money will be allocated to underwrite the establishment of 5 villages in India to act as models and training centres.
Once the Carbon Credit cycle has been established the villages will benefit from the money generated from these
Carbon Credits creating a self-sustaining model.
Unique Carbon Mitigation Model
Professor Hircock believes that this program has the ability to sequester a significant amount of carbon. TFS is reviewing
the NORP structure proposed by Professor Hircock and intends to implement the program after consultation with
leading experts in this area. It is hoped that this will be viewed as world’s best practise of climate mitigation between
the 1st World (Australia) and a developing nation (India). The Natural Origin Recognition Protocol and it’s Climate,
Community and Bio-Diversity approach will aim to be launched in October at the 2009 Cosmethica Congress in France.