overview

A COMPANY THAT HAS SUCCEEDED IN AGRICULTURAL PROJECTS

Sydney - Friday - November 14: (RWE Aust Business News)
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OVERVIEW
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Company bottom lines take some twists and turns these days,
trying to get a good result.
It might not be as good expected but it is a presentable result.
A good example is Timbercorp Ltd (ASX:TIM) which sees 2008 net
profit at $40-$44 million
On July 1 the company announced an expected net profit of $53-$57
million for the year ended 30 September.
Following a review of current projects and assets, directors
raised a one-off provision of $19 million ($13.3 million after tax)
relating to the company's 2004 and 2005 table grape projects.
The provision and final result is subject to completion of the
audit.
The 2008 result will be released to the market on November 27.
In 2004 and 2005 Timbercorp offered table grape projects for 412
hectares.
Over the past two years Timbercorp has removed and replaced most
of the initial varieties planted to improve the performance of the
assets.
Until the new varieties produce near mature crops the directors
have taken a conservative view of cash flows and hence raised the
provision.
These projects comprise less than 5per cent of Timbercorp's
horticultural investment offerings.
Back in July, Timbercorp said it expects total project revenues
to increase to around $425 million for the year ending September 30
(2007: $375 million).
This follows a sell out of its forestry project to June 30, which
was oversubscribed, to $51 million, up 24per cent from $41 million last
year.
The increased project revenue figure will comprise:
* Recurrent contractual revenues from past projects (annuity
style revenues) of $300 million, up from $243 million in 2007; and
* New sales revenues for the nine months to June 30 of
approximately $128 million, down from $145 million for the full year in
2007 reflecting a reduced number of project offerings this year.
The 2008 sales will contribute to further growth in annuity style
revenues towards $330 million in 2009.
Chief executive officer Sol Rabinowicz said he was extremely
pleased with the new sales result having sold out early both the forestry
and almond projects and recording the company its highest level of sales
of olives since the project first commenced in 2000.
He said that despite tighter market conditions this year due to
greater uncertainty in the financial sector, demand for Timbercorp's
projects has remained strong, demonstrating the depth of our distribution
and strength of our brand in agribusiness investment
"Demand for our forestry project was particularly strong,
enabling a significantly higher level of sales than forecast," Mr
Rabinowicz said.
"From July, Timbercorp will focus on a number of new investment
products.
"In particular, we are close to finalising a new forestry project
under the new legislative framework, which will be available early in the
2009 financial year.
"We are also well advanced with our new agribusiness and related
funds management products.
"The $150 million Timbercorp Dairy Fund is currently receiving
strong interest with a private placement memorandum due to be released to
prospective investors soon," he said.
"The thematic Agri, Carbon and Energy fund is also expected to be
available for investment over the next few months.

SHARE PRICE MOVEMENTS
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Shares of Timbercorp yesterday fell 8.5c to 41.5c. Rolling high
for the year is $1.83 and low 41c reached yesterday. Dividend is 5.5 per
cent to yield 11.22 per cent. EPS is 22.28c and p/e ratio 2.2. The
company has 352 million shares on issue and a market cap of $172.5
million.
On October 1 Rod Fitzroy took over as chairman from Kevin Hayes,
who remains on the Board as an independent director.
The company creates wealth through high quality agricultural
projects developed on a world scale to meet global demand.
With fully integrated operations, Timbercorp actively manages the
entire agricultural project cycle on behalf of its grower investors.
This encompasses the establishment, financing and marketing of
projects through to harvesting, processing and end-sales.
The company's portfolio of managed agribusiness assets (including
established and committed plantings) consists of more than 96,000
hectares of eucalypt plantations, 6,622 hectares of olive groves, 11,862
hectares of almond orchards, 1,345 hectares of citrus orchards, 412
hectares of table grape vineyards, 816 hectares of mango orchards, 1,207
hectares of avocado orchards and 8.2 hectares of glasshouse tomatoes.
With net assets of $572 million, Timbercorp generates a mix of
strong recurrent revenue streams.

BACKGROUND
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Timbercorp Ltd joined the Australian Stock Exchange list on May
30, 1996.
The company is Australia's leading agribusiness investment
manager.
It sources funds and manages high-quality large-scale forestry
and horticulture projects for investors looking for attractive tax
advantaged returns.
Timbercorp developed and now manages 12 per cent of Australia's
eucalypt plantations which produce wood fibre exported to Japan, the
world's largest olive grove on a single site and the largest almond
orchard estate in the southern hemisphere.
The company has further diversified into citrus, table grape,
mango, avocado and glasshouse tomato operations through alliances with
Australia's leading producers, processors and marketers.
This portfolio is managed intensively to deliver added value and
ongoing improvement in performance.
Timbercorp's strategy is to leverage this core investment
management strength to grow and diversify revenue streams and product
offerings within the agribusiness sector.
Since 1992, Timbercorp has managed more than $1.7 billion in
funds invested into agribusiness by 18,000 investors from around the
country.
Timbercorp employs more than 180 staff directly and is
responsible for the employment of more than 1,500 employees and
contractors throughout regional Australia.