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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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Precious Woods Amazon closely connected with the local population

In 2017, Precious Woods Amazon successfully completed its 20th year of FSC-certification – one of the longest and thus most sustainable track records in Brazil’s forestry sector. More far-reaching investments have been made not least of all in the fields of workplace safety, accident prevention, and training. We maintain partnerships with educational institutions in order to promote schooling as well as professional training for the employees, their families, and the inhabitants of Itacoatiara.

Precious Woods attaches great importance to a good relationship with the local population: In 2016, PW Amazon began a socioeconomic survey of the local communities. We draw on this survey to gain insights about the environmental, ethnic, and religious aspects and the measures we should take to promote participation by the local population.

Over the course of 2017, Precious Woods promoted cultural events, celebrations, and sporting events, and it supported the construction of community centres. Films and videos are also used as part of an environmental education project. Pieces of waste timber and other sawmill waste are provided to artisans and used in workshop courses for the local communities.

In cooperation with the HAFL (Bern University of Applied Sciences, School of Agricultural, Forest and Food Sciences) and other educational institutions, we regularly accompany bachelor’s and master’s theses of prospective forest engineers. In this way, we gain important insights into the impact of our activities, the regenerative capacity of our forest areas, and any potential for improvement. And sometimes we even succeed in attracting managers for our locations in Brazil and Gabon. The 20-year data collection on the growth of different tree species in the Amazon forests provides a unique basis for new approaches to sustainable management of tropical forests.