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Annual Report 2017
Annual Report 2017
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Annual Report 2017
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Table of contents for the Annual Report 2017 report

Operational review
Key FiguresTo our shareholdersAbout Precious Woods
VisionFocus on economic, social, and environmental added valueProducts and marketsGlobal and economic challenges in a dynamic environmentA pioneering role – more than simply sustainable certificationStrategy: Market orientation and continuous optimization of the value chainMedium term goals: Sustainable growthManagement organization with increased market orientationMilestones Precious Woods
Group results
Income statementBalance sheet
Brazil
Higher harvest volume – lower productionPrecious Woods Amazon in briefContinuous efforts on legacies and exceptional factorsSocial and environmental sustainabilityOutlook for 2018
Gabon
Increase in productivity and profitabilityIn a stronger position for the next phaseReport on further progress in social and environmental sustainabilityPrecious Woods Gabon in briefOutlook for 2018
Trading
Precious Woods Trading in brief
Carbon & Energy
CERs from Brazilian biomassEmission trading together with myclimatePrecious Woods Carbon & Energy
Sustainability
Selective wood utilization is not synonymous with sustainable forest management4 : 1330 000 000tCFauna / FloraPrecious Woods Amazon closely connected with the local populationSustainability as our entrepreneurial principlePrecious Woods in Gabon – gentle use and wildlife protectionIllegal logging threatens certified timber trade and sustainable developmentOpportunities for FSC certified timberThe role of forest management in the climate debateSustainability Advisory Committee (SAC)
Corporate Governance
1. Group structure and shareholders2. Capital structure3. Board of Directors4. Group Management5. Compensation, shareholdings, loans6. Shareholders’ rights of participation7. Changes of control and defence measures8. Auditor9. Information policy
Shareholder information
Share capitalEquivalent to 100 sharesStock market listingShare register informationCompany headquartersStock price development
Financial Report
Precious Woods Group financial statements
Consolidated statement of financial positionConsolidated statement of profit or lossConsolidated statement of comprehensive incomeConsolidated statement of changes in equityConsolidated statement of cash flowsNotes to the consolidated financial statements
1. Basis of presentation and accounting policies2. Financial risk management3. Trade and other receivables4. Inventories5. Other current assets6. Property, plant and equipment7. Forest, forest improvements8. Intangible assets9. Investment in associates10. Non current financial assets11. Trade and other payables12. Financial liabilities13. Provisions14. Financial instruments by category15. Convertible loans16. Share capital17. Related party balances and transactions18. Employee benefits19. Net sales from trading activities20. Revenue from carbon emission reduction activities21. Other production costs22. Depreciation, amortization and impairment23. Direct and indirect labour costs24. Other operating income and expenses25. Financial income and expenses26. Leasing27. Earnings per share28. Contingencies29. Financial information by segment30. Major shareholders31. Income taxes32. Currency translation rates33. Divestments and acquisitions34. Subsequent events35. Approval of financial statements and dividends
Report of the statutory auditor on the consolidated financial statements
Precious Woods Holding Ltd financial statements
Balance sheets as of 31 December 2017 and 2016Statements of income 2017 and 2016Notes to the financial statements of Precious Woods Holding Ltd
Essential accounting and valuation principles1. General2. Authorized share capital3. Conditional share capital4. Investments in subsidiaries5. Other short term interest bearing liabilities6. Long term interest bearing liabilities7. Board and Executive compensation8. Depreciation, amortization and impairment9. Major shareholders10. Pledged assets / other securities11. Other note / Full time employment12. Other note / Residual amount of leasing obligations13. Other note / Significant events after the reporting date
Report of the statutory auditor on the financial statements
Additional information
Contact addresses
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Social and environmental sustainability

In 2017, Precious Woods Amazon passed the full FSC recertification audit – which is conducted every five years – with an excellent result, credibly documenting that we set standards in regard to the sustainable use of our forest areas. PW Amazon was additionally certified under the virtually equivalent standards of the PEFC, with the same excellent result. PW Amazon is thus the first forestry operation in Brazil with a double certification. We are currently working on several scientific projects to examine our activity over the medium and long term and to obtain information to optimize and document our forestry operations. We are also in close and intensive contact with the regional communities, allowing us to undertake useful joint projects. The focus is on forestry training, security, but also support for local small businesses.

We are able to report on the following activities in the reporting year:

  • In order to raise awareness of our sustainable forest management, we inaugurated an educational forest trail. The trail is located in an area that was cultivated more than 20 years ago. This impressively documents how the natural regeneration of the rainforest takes place under sustainable use.
  • Together with the military police of Itacoatiara, investigations of poaching and illegal woodcutting were conducted in the region. Monthly patrols to secure our forest areas were also intensified, and activities were expanded – for example by installing warning signs, distributing information brochures, and initiating a series of lectures.
  • In cooperation with EMBRAPA (Brazilian Agricultural Research Corporation), we started a project on the measuring of tree growth after harvesting and the productivity capacity of the tree population. This project is being continued, providing valuable analysis data over time for scientific purposes.
  • A research project is currently underway for monitoring the carbon dynamic in managed forests in the Amazon. The goal of this project is to define the methodology for measuring carbon sequestration in managed forests in the Amazon in order to create the preconditions for offsets of emission rights.
  • As a contribution to social engagement, PW Amazon created a playground and meeting place for all age groups in Itacoatiara, which is highly appreciated by the city government and the population.
  • We continue to strive to promote the agricultural production from the communities, such as cassava flour, fruit pulp, tucumã, rambutã and vegetables. This enriches the diet of the local population, and we ourselves are an important purchaser of the products. We also continue to support the extraction of non-timber forest products (oils, resins, seeds and other natural essences). These are traditionally processed by the communities and contribute to their income.
  • In addition, we continue to be active in offering courses for vocational development and improvement of skills for the manufacture of handicrafts. This programme is done in partnership with CETAM (Center for Technological Education of Amazonas) and SENAI (National Industrial Learning Service). The goal of these courses is to provide the local population with the opportunity to improve their income with the manufacture and sale of handmade products.