SUSTAINABLE SUPPLY CHAIN PARTNERS

HL: Suppliers and partners are of crucial importance to our business and we especially see this in less developed markets or emerging forestry markets such as Mozambique where many inputs are not readily available. Essentially our key suppliers in the group invest side by side with us in these territories by putting in consignment stock or bringing product into the country based on a single or limited user base. On the market, we have positive experience with customers taking exposure through prefinance of product.

Aside of the larger scale suppliers our businesses deal with literally hundreds of small-scale farmers who supply some of the raw materials to our processing plants. During the last financial year, we procured raw materials worth

$3.8 million from smallholder forest owners.