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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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Opportunities for FSC-certified timber

The FSC certification standard goes far beyond the minimum requirements of legality, setting out more extensive demands in regard to environmental and social sustainability in forest management as well as an uninterrupted chain of custody. The tightening legal situation in importing countries will benefit trade in FSC-certified timber in the medium term. The total forest area under FSC certification was 195 million hectares at the end of 2017, which is greater than the area of Germany, France, Spain, and Italy combined. But only about 10 % of that area covers tropical and subtropical forests, which means they are still highly underrepresented in terms of FSC certification. Precious Woods manages about 6 % of the total FSC-certified tropical and subtropical forest area.

Environmental and social indicators
                 
        2017   2016   2015
Environmental indicators                
Forest management                
Forest protection   total area in ha   1 103 500   1 103 500   1 103 500
FSC share of timber production sold   in %   100   100   100
PEFC share of traded timber sold   in %   100   100   100
Energy consumption and emissions                
Reduction of CO2 emissions   in t   51 596   53 540   42 544
CO2 emissions   in t CO2-equivalents   16 400   16 100   14 000
Electricity consumption   in GJ   31 800   29 500   24 500
Fossil fuel consumption   in GJ   175 100   169 900   147 300
                 
Social indicators                
Employees                
Number of employees (yearly average)       1 340   1 291   1 269
 Brazil       499   480   468
 Gabon       830   800   790
 Europe       1   1   1
 Corporate       10   10   10
Women   in %   11   11   10
Rate of employee turnover   in %   3   2   3
                 
Health and safety                
Accidents at work       96   198   170
Accidents per 1000 employees       72   153   134
Days lost per accident       12.3   8.7   9.4
Fatal accidents at work       –   –   –
                 
Training                
Training hours       970   848   1 055
Training hours per employee       0.7   0.7   0.8