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Taan Forest Ltd Presentation Summary October 23. 2012 2 . Overview of Haida Gwaii and the Haida . Introduce the Haida Enterprise Corporation . Haico Corporate Goals . Introduction of Taan Forest Ltd. Forest Management and Operating Principles . Best Practices . Challenges and Opportunities Haida History 3 . First settlements as long as 13,000 years ago . Up to 30,000 Haida in more than 100 villages . Rich culture and traditions . Linguistically distinct, complex class and rank system . World Renowned Artists, Dancers, and Musicians Skidegate Village 1884 4 RBCM Photo Haida History 5 . European Contact started in 1700’s . Smallpox and disease 1860’s <500 survivors . Today about 4000 Haida people, half live on Haida Gwaii . Many legal/political accomplishments by HAIDA NATION related to achieving rights and title protection . Strong interest in renewed economic development for islands Islands Recent History 6 . Governor Douglas of Western Canada named the Islands “Queen Charlotte” . German Princess who was married to King George III . Colony of Queen Charlotte Islands 1853-1863 . Absorbed in Colony of British Columbia 1863 . Became part of British Columbia 1871 as QCI . Industrial logging began in 1920’s . Officially renamed to Haida Gwaii in 2010 Haida Gwaii Today 7 • 150 islands largest being Graham and Moresby • 1 million hectare land area- 48% protected/park status • Largest community – Queen Charlotte City – 950 people • Population about 4900 • Fishing, tourism, logging, government are mainstays • Communities-Sandspit, Queen Charlotte City, Skidegate, Tlell, Port Clements, Masset and Old Massett village HaiCo – An Introduction 8 . 100% Haida Nation ownership . Haida Leaders nominate HaiCo board members . Nominees selected based on diverse business experience and skills . Independent Board of Directors . Businesses operated separately with shared administration Haida Shareholder Direction 9 . Council of Haida Nation Letter of Expectations . Approval of HaiCo’s Strategic/Business Plans . Focussed on direction at Strategic levels . Quarterly Gatherings and annual Haida House of Assembly . Close Communications Expected-No surprises approach Introduction to Taan Forest Ltd. 10 . First Logging Operations in 2010 . Granted first forest tenure (FLTC) Sept. 2010 . TFL 60 Purchased from WFP in June 2012 . First full year of operations in 2011 HaiCo Forestry Tenures 11 Forest Inventory/AACs 12 Timber Harvesting Annual Allowable Tenure Total Area - Ha Land Base - Ha Cut – M3 TFL 60 136,400 55,574 340,000 First Nations 71,000 30,003 120,000 Woodland Tenure Total 207,400 85,577 460,000 M3 = Cubic Metres Ha = Hectares Taan Financial Results/Projections 13 2011 Revenue /Sales Can$17,000,000 2012 Revenue/Sales $21,000,000 2013 Revenue /Sales $30,000,000 2011 Custom Cut Sales $500,000 2012 Custom Cut Sales $2.5 million 2013 Custom Cut Sales $5.0 million Ferguson Bay Pole Plant 14 . Joint venture with Skidegate Band . Started in mid 2012 - $1 million investment . Annual capacity 15,000 + high value poles . 4 new full time jobs-mostly Haida workers . First 3000 poles shipped October 2012 . Opportunities from off cuts, rejects and waste HaiCo Board 15 . Chair- Dr. Roslyn Kunin – Economist . Paul Wates CGA – former corporate executive . Dana Bellis – First Nations Fisheries Council . Lonnie Young – Hereditary Chief . Kevin Ainsworth – CEO and businessperson . Tasha Samuels – business school student HaiCo Executives 16 . CEO - Kevin Ainsworth MBA, graduate forester with extensive sawmill and business experience in energy, capital and forestry . COO – Bob Brash RPF, MBA, professional forester, former District Manager with Ministry of Forests, served as President of a Haida Gwaii forestry company Taan Core Principles Best Operating Practices 17 . Operate as a business without subsidies . Meet or Exceed all BC forestry/environmental laws through HG Land Use Order . Exceed “normal” Ecosystem Based Management principles . Maintain Forest Stewardship Council® standards . Focus on sustainability, community, safety and employment Governance Best Practices • Diversity of Experience based on merit and ability • Haida and non-Haida representation • Independent Board • Strategic Link between Owners and Board • Constant communications between all levels • Long and short term focus Haida Gwaii Land Use Plan (Best Practices on the Land) 19 . World class land use planning . 48% parks and protected areas . Riparian Management . Cedar Stewardship Areas and Culturally Modified Tree protection . Marbled Murrelets/Owl reserves . Black Bear Dens-Wildlife reserves . Complex and comprehensive FSC Certification (Best Practice Environmentally) 20 . Both Forest Management (SW-FM/COC-005656 ) and Chain of Custody (SW-COC-005649) certification . One of largest FSC® log suppliers on BC coast . Provides customer and shareholder assurance of responsible management . Annual audits and public reporting Trademark license FSC®-C104355 & C108282 Best Management Practices • Hire on Ability • Pay Competitively • Invest in capacity building • Work with Youth • Sell by the Ounce not the Tonne • Manage the Money • Plan for Bad Times • Have the Right Systems in Place Community Best Practices 22 . Commitment to Haida Gwaii community . A focus on creating Local employment and management . Frequent Community Meetings . Ongoing and frequent Newsletters . Address Issues Head-on The Challenges 23 . To be profitable and successful . Ramping up to Harvesting the Allowable Annual Cut . Contractor capacity . Shortage of technical personnel . Working capital for future projects . Ability to carry inventories for extended times . Isolation and transport costs to markets Current Priorities Long Term Best Practices 24 . Establish new partnerships and long term relationships with domestic and international customers . Establish foundation for manufacturing on Haida Gwaii . Leverage high value products into benefits for Haida Gwaii . Promote value added HaiCo/Taan products in high quality lumber, cedar poles, seafood and sportsfishing Other Businesses 25 . West Coast Resorts Lodges . Two Haida Gwaii hotels . Haida SeaPak seafood processing company . Aquaculture operations with scallops . Biomass energy West Coast Resorts Haida Concept Lodge 26 .
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