© Papyrus Australia Ltd 2009

PAPYRUS AUSTRALIA LTD

Paper, Veneers, Board & Fibre from Banana

Tree TrunksProgress Update

© Papyrus Australia Ltd 2009

Origin of the Products

BTT Outer (Round Up)High cellulose contentMDF, chipboard,

hardboardPaper manufacture

BTT Inner (Core)Decorative veneersPaperLaminates

The Papyrus Technology successfully unlocks the potential of the Banana Tree Trunk (BTT), an unutilised product of fruit production.

Over 1.5 billion tonnes of BTT are cut annually and left on the ground to rot.

The Banana Tree Trunk (BTT) Cross Section

© Papyrus Australia Ltd 2009

Volume & Value Relationship

Value$/m2

Volume

Veneers

Fibre

Paper

$5 - $10

$2 - $3

< $0.50

© Papyrus Australia Ltd 2009

Why Veneer?

• High Value• Lower, accessible volume• Matches with initial production

capacity that PPY can achieve (in the short term)

• High strategic visibility• In-house expertise• Capable and committed Customers• Physical properties of PPY product

are superior to current products, with excellent environmental credentials.

© Papyrus Australia Ltd 2009

Why Fibre?

• Intermediate Value• Lower, accessible volume• Matches with initial production

capacity that PPY can achieve (in the short term) with long term sustainability

• Strategic visibility• Physical properties of PPY product

are superior to current products, with excellent environmental credentials.

© Papyrus Australia Ltd 2009

What About Paper?

• Long term supply option from both sheet and fibre sources• High volume• Long term sustainable supply• Strategic option for less

sophisticated markets• Physical properties of PPY product

are superior to current products, with excellent environmental credentials.

© Papyrus Australia Ltd 2009

Papyrus Manufacturing• The major milestone achieved!• Engineering & Production Plan

(June 2008) implemented and completed.

• Scale up production by increasing supply of labour.

• Fibre cutting machine ready to commission.

• Veneer shipments to EU Customers will increase.

© Papyrus Australia Ltd 2009

Papyrus Business Model• Working with Inventure Partners to

construct the production & financial costing model.

Financial Model

Production Data (Walkamin, NQ)

Marketing & Sales Data (From 3W Tout Bois)

Business Model (Ready for Expansion)

Products

Income

Data

Data Data

© Papyrus Australia Ltd 2009

www.papyrusaustralia.com.au