2004
Eleventh Annual Meeting Chairman's Address

The annual report document has outlined the June 2004 result and commented on the factors that gave rise to the significant loss reported for that year.

Evergreen Forests Limited, like other forest owners has not fared well in conditions that have been dominated by external factors. Shareholders have been hearing the same story for some time. The combination of a strong New Zealand Dollar, high shipping rates and variable demand in our major markets are familiar messages.

Unfortunately they still apply and in fact the continuing high currency and shipping rates show little sign of abatement.

It is essential that companies take decisive steps to do what they can to mitigate these negative factors and I am pleased to be able to state that Evergreen Forests Limited has been active in dealing with those matters that are within its control.

We have made sure the market has been aware of the steps we have taken but it is appropriate to reflect on what has been achieved to date-

· A year ago I announced that an independent review had been commissioned to externally test the strategies being addressed by the board and to extend the review to any other strategies that may be worthy of consideration.

· The reviewers had access to all information they required and also had the opportunity to talk with major shareholders. The review outcomes were as announced-

• That costs should be aligned with assets under management
• That non- core / peripheral forests should be considered for sale with proceeds applied to reduction in debt.
• That the balance sheet should be strengthened by a combination of asset rationalisation and new equity to a level that allowed stability in the medium term and shareholder returns at a sector level in the longer term.

· The administrative costs were addressed in part by a staffing restructure and I am pleased to acknowledge the contribution of past employees and the significant contribution now being made by our dedicated team led by David Sayer, Vivek Singh and Andrew Widdowson.

· The Board considers the current staff resource is skilled and committed to the company and with the associated steps taken to relocate premises and actively control costs, the level oadministrative expenditure is aligned to the assets under management.

· Forest values favour buyers under present market conditions but we do have some smaller forests that are being marketed where harvesting has been substantially completed or are smaller more isolated holdings. The sale process is likely to take time but we are pursuing those options we have with the intention of applying any proceeds in reduction of debt. We have sold forestry assets (including Nuhaka units in the sale announced this week) of approximately $3.7m and have two offers under consideration.

· Where alternative use options for land exists, we will investigate these options fully before committing to re-establishment of forests. There are many forestry companies worldwide that have successfully diversified into land- based alternatives and this is happening here as evidenced by the changes in use of land sold by Fletcher Forests and recently announced conversion to dairying for some of Cater Holt Harvey land holdings.

It will be clear that your Board has been implementing the recommendations from the external review and we will continue to pursue the target outcomes. Progress is (as I stated in my report to shareholders) dependent to some extent on trends in the market for logs. I will not predict when our currency will fall against the US$ - I can safely leave that for others to get wrong. Nor will I anticipate when the shipping rates may moderate given the expected increased capacity benefit possibly offset by current oil prices.

What I remain confident of is the long- term value of renewable, environmentally friendly timber resource. The depletion of indigenous timberlands continues at pace and the economic costs of alternatives increases in times of increasing costs of energy. The problem we have is when this will result in improved prices for plantation grown radiata pine.

The results this year reflect the consequence of a considerable downward valuation of our forests. We hope this is the low point in valuation adjustments and note a small increase in the valuation of our forests in the
six- month to 30th June last.

Forest transactions will also impact valuer's views and prices achieved in the anticipated sell down of Cater Holt Harvey forests will be reflected in
our carrying values.

In the brief Annual Report document we have included tables that indicate NZ$ yields over the last year and you will note considerable volatility and the particular impacts of currency and shipping costs.

We have also provided information to enable shareholders to appreciate the value impact on NTA and the effect of price and discount movements on NTA. This illustrates the sensitivity resulting from price and value changes and the fact that modest price movements have a significant value impact.

We should also note that our valuer's estimated that if log prices remained at 30th June 2004 values then at a 10% discount rate NAV would be approximately 33 cents per share.

Finally we are observing a high level of offshore interest in NZ forests. These investors are knowledgeable in the sector and long- term investors.
Recent announcements that further substantial forests are to be marketed may give rise to an increased investor focus and we will be alert to any opportunities that might provide for Evergreen Forests.

29 October 2003
Tenth Annual Meeting Chairman's Address

For some time Evergreen has shared its objective to grow, achieve economies of scale and as a larger and more cost efficient company, be better placed to deliver improved value recognition and liquidity.

Growth with improved value outcomes has proven to be very difficult and it is worth observing what has been happening in this industry over recent years and the impact of changes on the forest owning industry.

· First - it would be very much better to be buying forests in 2003 than in the mid 90's. Aside from currency volatility, pricing has not moved upwards as was anticipated and the drivers of demand for plantation grown forests have not emerged to a material extent. As a result values have reduced.

o Risk return for forest investment increases in these circumstances so investors tend to look for higher returns to compensate for the value risk. Relatively small movements in price assumptions over a long period or small movements in the yield expected, have significant and immediate impacts on current values.

o Fletcher Forests have sale negotiations for their forest estate at close to 50 % of their 2002 carrying value. Central North Island Forest Partnership seems now to have moved out of receivership at about the reported level of its debt and Carter Holt have indicated they are considering a reduction to their forests values of some NZ$900m.

o In an industry that is principally a commodity supplier to international markets, we must accept that we will do as well as our competition and alternative use suppliers allow us. Even then we need to be well organised, innovative and have a long- term investment philosophy if we are going to be successful.

· Secondly- New Zealand is seeing a quite rapid change in forest ownership patterns. In the early 1990's many of the forests established by the Crown were sold and over the 80's and early 90's significant new forest lands were established. These added to the forests owned by the major New Zealand forest companies with their established view that an integrated forest ownership and processing model was what was required.

o In the last 10 years, there has been a progressive and accelerating change. We now have the emergence of direct forest ownership by (principally) US Pension Funds, private equity partnerships of high net worth investors from offshore, and some traditional long- term forest- land owners seeking some New Zealand resource exposure.

o US Pension Fund interest in CNIFP and Fletcher Forest Estates may reflect the special qualities of the New Zealand investment environment, the quality of its forests and the skills of its industry participants. It could also be that the opportunity to get the best risk- adjusted forestry sector return in the world, is here and right now.

To achieve growth in this market, Evergreen would need to have access to capital sufficient to re-establish a conservative level of debt and have surplus funds to acquire assets at these current historically low values. That is not something we would anticipate in the short term.

Our immediate requirement is to look to sensibly manage our way through the year ahead and review our costs and structure with the intention to seek savings and reconsider the best means of delivering value to shareholders.

I outlined in my report that these matters were being addressed and your Board intends to complete a review before the end of this calendar year for implementation early in 2004. The options available to Evergreen are being canvassed at our Board meeting being held today and which will continue after this AGM.

Evergreen may have performed well compared with its listed company peers over recent years, but that is of no comfort to those of us who have been long-term investors in this company. We need to work to provide improved outcomes and for our part, we will do so with determination. I want to make it clear, however, that we can only deal with factors that are reasonably within our control, so shareholders need to understand that the success of Evergreen will be dependent largely on a fundamental strengthening of the supply / demand equation leading to improved NZ Dollar returns. In some markets, including China and Korea, the delivered US$ prices for logs is increasing. The higher NZ dollar and increasing shipping rates are offsetting this price increase for now.

There is every likelihood that Evergreen will be the only significant listed pure-play forest ownership company in New Zealand within a short space of time. There is a body of investors that prefer the transparency and currency of the listed market and the obligations that the market imposes in the interests of investors. It remains an open question as to whether these features can be translated into shareholder value.

2004 is going to be difficult. Sale of forests other than under willing buyer / willing seller terms distort the market and perhaps the overhang in the New Zealand market is going to be resolved in the near term given recent announcements. Confidence in the industry and in the value of its forest assets is critical.

The period to 30th June 2004 will be a watershed for Evergreen. We are "battening down the hatches" and taking out costs where we can. We are not closing off any options for the future but do wish to signal to shareholders that in response to current market conditions, some change should be anticipated.

7 November 2002
Ninth Annual Meeting Chairman's Address

My annual report comments have outlined our view on the Forestry sector, its challenges and opportunities and what we see as the matters for us to address in the year ahead. There are some particular issues I would like to expand on-

1. As you will have been aware, Xylem Investments manages funds on behalf of US based Pension Funds. Under the terms of its management contract, a review was undertaken this year that resulted in Xylem's management of the Xylem fund that includes the Evergreen investment being terminated. Pursuant to this change, the two Xylem Fund representatives on the Evergreen Board resigned.

We anticipate a replacement manager will be appointed shortly and following that, discussions will take place with the new manager of the fund in relation to representation on the Evergreen Board. The Evergreen board next meets in February 2003 and I would expect announcements to be made at that time if not before.

The notice of meeting was issued with the expectation that manager appointment and representation would be determined by now. Unfortunately we have not reached a stage where the nature of representation can be determined. The Board has decided that any consideration of director's fees in aggregate and per member, should best be addressed when the manager appointment process is concluded and we can discuss representation with the new fund manager.

Accordingly, unless there is any objection, item 3 will be withdrawn from the agenda for today's meeting.

2. Trading in the first quarter has been ahead of budget for both volume and profit but we would expect that position to be adjusted back to forecast levels over the second quarter as the company shifts its main harvesting focus from our Rototuna Forest in Northland to the Coroglen Forest in the Coromandel. Our forward planning does give us confidence in meeting our production and cash flow targets for the full year subject of course to price and currency influences. Based upon current market conditions, we are anticipating another profit increase this year.

3. There has been considerable recent focus on major New Zealand forestry companies and in particular the need for resolution to the long-standing uncertainties over Central North Island forests. More recently some advocacy for industry grouping to improve market effectiveness and present a more consistent face to international markets has been advanced. It is my opinion, and I have stated it in each of the last two years, that many of the now stated objectives can be achieved by a sensible and structured approach to investment, and marketing and distribution needs.

There are quite significant and fundamental differences between the dairy and forestry industries, their ownership and supplier structures, the extent of off shore investment in New Zealand now and the level of investment required to expand, -the international supply / demand drivers and the underlying culture of the respective industries

That is not to say groupings, alliances and future mergers should be resisted. It is really much more about ensuring what is contemplated will have the outcome shareholders expect - namely an improvement to share value and yield and an ability to hold an investment in companies that are well governed and earn a reputation that deserves investor support.

4. It is encouraging to see political assurances for regional development actually eventuating. The identification of Northland and the East Coast as areas of early investment is very good for us. It is also an excellent means of maintaining and enhancing the retention of communities and their infrastructures, which this forestry industry is uniquely able to support through employment in sustainable industries.

5. The Kyoto Protocol principles are supported by Evergreen but the methodology for nationalising sequestration credits that we believe belong to our shareholders is an anathema. It is pleasing to note that the huge importance Forestry has for this country is being recognised, (albeit belatedly), and some progress in Government's understanding of the need to invest in the sectors success is evident in recent discussions with industry representatives.

Forest Industry estimates are that the net present value of these nationalised sequestration credits is $1.5 billion. The level of appropriation out of the forest industry is huge and that needs to be recognised and more reasoned policies considered.

It is easy to say our comments are self-serving. That is patently not so. We are firmly committed to play our part and we do so on a day-to-day basis. This year we have "retired" for conservation purposes some 500 hectares for natural regeneration and we are well advanced with international certification of our forests as being sustainably managed on a social, environmental and commercial basis.

6. We do live in uncertain times. The last few weeks have reminded us that any organisation that depends on markets in Pacific Rim countries will need to anticipate some volatility. The smart strategy is to be flexible, invest to add value to what is produced and to seek alliances with those who want to develop long-term relationship based associations. We have done that in Korea and are moving to do the same in China and the USA. We believe profitable long-term business opportunities are those done with people who trust each other.

7. We have successfully restructured our debt profile. Our banking terms have been renewed on the basis of a 5-year term and we are in the final stages of negotiating a 10-year loan to replace the vendor loan from Carter Holt Harvey. That result and further conversion of convertible notes has strengthened our balance sheet position, which was one of our major objectives over the last year.

8. The share buy back programme announced last year has resulted in 678,000 shares being repurchased and these have subsequently been cancelled. On an annual basis this represented 5.22% of traded ordinary shares. We have decided to continue the programme and include convertible notes as advised to shareholders by separate notice on 28th August 2002. There has been minimal activity under the new authority. (70,000 shares)

Evergreen has achieved well if compared with its peers in this industry. The reward for our shareholders are none the less well short of what your Board regards as acceptable and indeed it is our view that we must continue to take such steps as are necessary to deliver yields which better reflect our cost of capital. The forestry sector is challenging but Evergreen will continue to steadily improve its harvest capacity, seek to grow where growth will add value and focus on improvements in operating cash flows.

9 November 2001
Eighth Annual Meeting Chairmans Address

Our Annual Report publication is our means of communicating with our stakeholders in an expanded way and I trust the additional commentary provided is of interest as well as being informative. The report document has a wide circulation and is well received by industry and investor interests both here in New Zealand and offshore.

Analysts who look to better understand longer term value trends do look back to establish some guidelines for the future. While it would be reasonable to ponder the relevance of such analysis given the considerable volatility in International markets over the last few years and particularly the last few months, it does give some comfort to investors in renewable resources in this beginning to the 21st century.

The US is the major price and investment driver for the forest industry. A recent analysis of US Forest Service data stated again the fact that over the last century real timber prices exceeded the real price per share yield on the S&P 500. It went on to state, and I quote-The world has little patience and immodest expectations Investors greatly prefer the fast growing weeds of the new economy to the great oaks of yesteryear.

As investors in the New Zealand Forest industry we can observe that returns in the last 10 years have been poor and the sector generally has not met investor expectations. That is so, but the importance of the industry to New Zealand and the opportunity to realise gains through investment in sustainable forest product production remains sound. . While some of the significant influencing factors may be outside of our direct control, on balance we remain confident of delivering a worthwhile result to our shareholders.

Our operating result for last year was on budget. The trading environment did get harder in the second six months but we met our objectives. We were concerned to have a write down on our investment in Nuhaka Forest Fund, however having adjusted for that change in value the net profit of $5.044m is good result a nd compares very well in the sector.

Your Board is also pleased to have concluded a share placement and buy back of convertible notes. The ten-year convertible notes carry a right to convert to ordinary shares at 55c per share on the accrued value through to 2009. We have therefore reduced the number of ordinary shares to be issued at that price and have undertaken this buy back at the accrued value excluding any option value. This strengthens our balance sheet through increased equity and reduces accruing interest costs on the notes. We will continue to seek opportunities to structure our debt to match anticipated cash flows and preserve flexibility in harvest planning.

Growth remains an objective but we are constrained when the appraised asset value is considerably higher than the price set by the market. Your Board takes the view that a pre tax unleveraged real return of 9%(implicit in the external valuation) is an attractive return on long-term resource investments and that the discount to appraised value is excessive. Major transaction evidence supports this contention.

Looking ahead we see trading confidence returning and increasing interest in product from major emerging markets such as China where New Zealand exports to that market have increased significantly this year. We also see the NZ Industry being more focused on maintaining a sustainable quality image for Radiata in international markets. Government and Local Authorities are more cognisant of the role they need to play in ensuring infrastructure development in rural areas and there are positive indications that there is a resurgence of understanding in the significance of agri-based industry to the country.

In this environment we have the capacity to increase our harvest volumes and the year to date performance is consistent with that. First quarter revenue for Evergreen forests is up 61% on an 86% increase in harvest volumes. Shareholders will note that the consequence of increased harvest volumes is improved profitability and while the ma rket for NZ Forest products will determine the extent of profit improvement, it is notable that we now have the capacity to significantly increase production and profit. We must note however that market conditions have been impacted since September 11th and we are seeing some softening in prices.

We commence our debt repayment programme this year and we plan to maintain a modest debt reduction programme with the intention of further improving our debt ratio over time. Given present market conditions, your Board would not see further acquisitions being financed by debt.

As I indicated last year we do see that growth will deliver increased economies of scale. Scale is a factor in delivering better recognition for the Company and we would hope, improved liquidity in our stock. The task for your Board is to achieve those goals while preserving current shareholder investment value.

We continue to investigate Joint Venture opportunities and service provision in forest management and marketing. These opportunities are as much about relationships and investor compatibility as potential yields and we have made very good progress in developing investment strategies with potential off shore investment partners. This Company can expect to extend its forest management and marketing activities in this way and thereby develop additional income streams with modest capital investment. We also see that we have a role in encouraging investment in debarking and log chip facilities where these will deliver improved yields. We continue in our efforts to develop niche markets and support improved technical expertise in the use of New Zealand radiata pine.

Shareholders have been informed of our planned share buy back programme. Having given careful consideration as how best to enable those shareholders who wished to receive a distribution do so in a tax efficient way, your Board decided to instigate a buy back programme which would also represent good value for the Company given the present price/ value disparity.

The Company has made purchases of 450,517 shares at an average cost of 50c in the period from 31st August to 8th November. The Board will review distribution options again next year when the results for the current year can be better assessed.

I will now ask Mark Bogle to address you.

7 October 1999
Sixth Annual Meeting Chairman's Address

This time last year Evergreen, along with many New Zealand companies, was experiencing the consequence of Asian economic difficulties. We had seen a significant reduction in levels of trade with Asian countries, particularly South Korea and Japan. We were unsure as to what stage in the cycle we were at but we did have some confidence that improvements would become more evident in the second quarter of 1999.

The process of recovery in Asian markets, with the exception of Indonesia, has been better than anticipated. Restoration of reasonable export volumes of timber products occurred in the fourth quarter of 1998 and demand held at improved levels through to the end June and are continuing.

The profit to June 1999 of $3.01million was pleasing and we expect to harvest similar annualised volumes this year. Harvest planning and marketing is an important factor to Evergreen and we will continue to position the company's resources in a way which will enable us to access higher volumes as market conditions improve.

We have maintained a similar level of investment in our existing forests and continue to apply our investment resource in maximising the value of our existing assets. This includes a continuation of investment in higher value pruned stands where the site and location justifies that investment.

Funding

Last year I indicated our intention to look to the establishment of a funding instrument which would enable us to access longer term money at a cost and level of flexibility which is more appropriate to the forest asset cycle.

Your Board was delighted to have successfully established a ten year zero coupon convertible note and to have that convertible note well supported by existing shareholders.

We see funding of this nature as being very well suited to Evergreen Forests and your board is of the view that funding instruments of this nature may well be a feature of our future capital structures.

Investments

Evergreen's investments were directed towards the further development of its existing resources in the year to 30 June. We recently announced the acquisition of further properties in the Gisborne/Hawkes Bay district which reflect the company's strategy of achieving a balanced age profile in its forest estates. Your Board is of the view that this purchase will ad significantly to the underlying value of the Evergreen portfolio.

Share Price

Based on the independent valuation commissioned by the company, the net asset value per share $0.86. (1998 - $0.83). Your Board considers that a satisfactory result given that there is understandable conservatism in valuers' views which will probably remain until prices return to trend line indicators.

Your Board is pleased to see that the share price has improved from $0.40 last year to $0.51 today and that there has been good liquidity in the convertible notes which are trading marginally ahead of their theoretical value.

Future Strategy

If the New Zealand economy is to grow, then much of that growth will be derived from the export sector and a significant proportion of that sector will relate to what we produce from the land. Add to that the continuing evidence of an increasing global demand for plantation forestry and the continuation of international investment interest in Australasian forests and you have a strong indication of a continuing and profitable long term industry.

Evergreen sees itself as being an emerging resource owner who can, through its listed structure and liquidity, be the preferred vehicle for resource investment in this major industry sector. We intend to reward our shareholders through growth and value recognition in the short term and in due course, through yield. A sustainable earnings and positive operating cashflow will dictate the timing of dividend flows to shareholders. Your Board will review these elements in June 2000.

Staff and Board

Evergreen has a small team with a high level of commitment. They too will be encouraged with last year's profitable result and the successful issuance of the convertible note. We have budgeted for one additional person to be added to our numbers this year to support the additional activities that arise through harvesting and marketing.

I would like to formally welcome Mr Don Campbell to the Board of Evergreen Forest Limited. Don brings a personal and professional interest in forestry investment as well as a wealth of experience in capital and equity markets. I would also like to pay tribute to the work of Robbie Dyce who retires this year having been a member of the Evergreen Board since its establishment in 1993.

Robbie's contribution has been of a very high standard, he has chaired the Audit Committee of the Board and has shared his considerable industry specific and wider commercial experience to the benefit of our company.

Ladies and Gentlemen, I will now ask our Chief Executive Mr Mark Bogle to address you on the company's operational activities over the last year.

29 March 1999
Convertible note issue concluded

Dear Shareholders

The company's issue of $NZ1.00 ten-year zero coupon convertible notes closed on 19 March 1999, and the allotment of convertible notes occurred on 26 March 1999. While Evergreen's major shareholder Xylem Fund I, L.P., did not participate in the offer, Directors are pleased to note that applications were received from 624 other rights holders for 8,002,840 convertible notes, representing 65.2% of the issue, excluding Xylem's pro-rata entitlement.

The balance of the issue (14,377,058 convertible notes) has been taken up by an underwriting syndicate led by Hambrecht & Quist Guaranty Finance, LLC ("HQGF"). Senior company executives applied for 474,169 convertible notes under the executive share option plan. The total number of convertible notes on issue is 22,379,898.

Prior to the convertible note issue, HQGF held 4.69% of the ordinary shares in the company. Following the issue, HQGF will hold approximately 13% on a fully diluted basis (assuming conversion of notes into shares at NZ$0.55). It is very positive that the company has attracted support from this genuine long-term investor. As previously announced, Mr. Donald M. Campbell, Chief Executive Officer of HQGF, will be joining the Evergreen Board.

Your Board also wishes to advise that it has approved a loan package to senior executives and the Chairman of the company enabling them to take up their full entitlement to the convertible notes under the executive share option plan. Loans totalling $473,669 were provided to the Chairman, Peter D. Wilson, and the following senior executives: Mark S. Bogle (Chief Executive); David E. Sayer (General Manager); Barry G. Herbison (Chief Financial Officer); Ashley Q. Chan (Business Analyst).

The proceeds of the loans were used to purchase 474,169 convertible notes. The loans are secured by way of a mortgage against these convertible notes, and the interest rate is set annually at a market rate equivalent to the company's cost of debt. Loans are repayable in full if the executives cease to be employed by the company. In total, executives and directors (including Mr. Campbell) subscribed for 739,804 convertible notes, representing 3.3% of the total issue.

In a further development, the company has decided to apply to list both the ordinary shares and the convertible notes on the Australian Stock Exchange, in response to growing interest in the company from both Australian institutional and retail investors. Subject to the necessary approvals, we anticipate that listing will occur in April 1999. Evergreen would then join 21 other New Zealand companies which are dual-listed on both the Australian and the New Zealand Stock Exchanges.

Yours sincerely

Peter D. Wilson
Chairman

8 October 1998
Fifth Annual Meeting Chairman's Address

At the time of our shareholders meeting last year early signs of some difficulties in the Asian economies were emerging. What has happened since then is well known as are its effects. What it has meant for the forestry sector is of course a significant reduction in trade with Asian countries particularly South Korea and Japan.

The wider global implications are also well understood and the impact on equity markets in this part of the world have been significant. There is insufficient evidence to suggest that we are at the bottom of the cycle although with the benefit of a significantly lower Kiwi dollar and the diversification of markets it would be reasonable to accept economic commentators views that improvements will be evident from the second quarter of 1999.

The change in economic circumstances require a review of priorities in a Company such as Evergreen.

Our first requirement has been to make sure that the management of our assets has received the best of attention and including financing costs we have spent $7.38 million in ensuring that the future yields of our forests are maximised. Evergreen is committed to invest for quality and that will continue.

The second requirement is to make sure that the underlying value of assets are preserved and we have been able to do this because of Evergreen’s unique structure where we are not committed to harvest trees in times of low prices in order to service down-stream processing requirements.

Essentially the last year has been one of consolidation.

In my report last year I referred to the Company’s intention to seek greater flexibility in its borrowing’s and to look to funding structures that were more aligned to the long term nature of forestry and to the cyclical nature of commodity markets. We have gone some way towards this with the re-negotiation of our banking facilities through to 2001. We are also investigating opportunities for a longer term funding instrument and I predict that such instruments will be a feature of our future capital structures.

Evergreen has made enormous progress in its short five year history. We started with 1500 hectares, passively managed, and now have 18500 hectares, actively managed. We are well advanced towards our stated goal of developing a medium sized, specialist plantation forestry company with quality assets.

Your Board ensures the company’s planning process provides for a level of anticipated cash flows which enable a prudent level of growth and provide us with the means to balance the benefits to shareholders through growth in value, with yields by way of dividend.

FOREST VALUATION

Evergreen again commissioned an independent value of its forests and as was expected forecast prices used in the valuation declined. One of the good things about a pure play forestry investment is that the trees still grow regardless of the economic climate and this year the biological growth approximately equated to the impact of reduced pricing. There is of course some risk around value assumptions into the future. It is worthy of note that sales are being made at or about valuation assumption levels now and with the benefit of a lower exchange rate and successful market diversification the major component will be when not if the world will see an improvement in the Asian economies.

SHARE PRICE

Based on the independent valuation report the net asset value per share has fallen from 89c to 83c. Over the same period our share price fell from a high of 64c to 40c. Sector perceptions and movements in the NZSE40 have obviously impacted most listed stocks. Evergreen has been less affected than some which in my view is a reflection of our risk averse structure and the high level of information that we provide to our shareholders to ensure they have an understanding of our strategies. I would suggest that the modest reduction in the independently assessed value is a more appropriate measure of the Company’s performance.

STAFF

The test of management abilities is most evident when trading conditions are difficult and the market is moving against you. Shareholders can be assured that the small hard-working and skilled Evergreen team has produced the expected resourcefulness and determination to deal with what has been quite a difficult year and have the motivation to continue that task.

BOARD

Your Board is committed to adding value through sensible strategies and I very much appreciate the contribution made by each of your Board members. In this last year the benefit of Xylem Investments global industry knowledge has been particularly helpful.

Ladies and Gentleman I will now ask our Chief Executive, Mr Mark Bogle to address you on the Company’s operational activities over the last year.

26 September 1998
Mark Bogle – Chief Executive, Rototuna Forest Harvest Ceremony

I would like to extend a very warm welcome to our Evergreen shareholders and distinguished guests who are here to share this important occasion with us.

I am delighted that we have such a good turnout of our shareholders, as this is a great opportunity for you to see first hand the company’s largest and most valuable property. Rototuna Forest, as its now known is a consolidation of the former Pouto Forest Farm and Te Kuri properties which Evergreen bought in 1995 and 1997 respectively.

The first substantial plantings on the property were in 1970 and the land has been progressively planted from that date. With recent plantings, we now have a contiguous forest of over 6,000 hectares or 15,000 acres. Pouto and Te Kuri are two early examples of successful agro-forestry and the ultimate result is a great credit to the people that were originally involved. I am delighted that we have a number of former Pouto Forest Farm and Te Kuri personnel present with us today and I am very pleased that both Mark Farnsworth and Ian Russell who were actively involved with Pouto from the very start have agreed to say a few words.

The commencement of harvesting is a very important milestone for Evergreen Forests. When the company was floated in 1993, original forecasts were that large scale harvesting would not commence until four or five years from now. The company has grown considerably from those early days and through acquisitions like Rototuna we have

managed to improve the maturity profile of the company’s estate and bring forward the initial harvest date.

Earlier this year, in preparation for harvesting we sent trial loads of Rototuna logs to several North Island sawmills. The trial results were extremely good. All of the mills were impressed with the results they achieved and this has really stimulated demand for an ongoing supply. Several people have told us that the pruned logs from this forest are some of the best available anywhere in New Zealand. This is partly because of the favourable growing conditions but also reflects very creditably on the past management.

Through Rototuna, we have a long term commitment to this district and we are very keen to see more downstream processing established in the area. It is a pity that the proposed Carter Holt LVL plant may now be located in Whangarei rather than Dargaville but there will be other opportunities. We are regularly approached by organisations interested in setting up processing facilities in New Zealand and we always do what we can to promote Northland and Dargaville in particular because of the increasing harvest levels and high quality of timber grown in the region. It is very important that local government and the community also continue to show their support for the forest industry.

Once again, it is great to see so many of our shareholders here today. Many of you have come a long way to be here and we really appreciate the effort made. I hope that you will take the opportunity to have a good look around the property following the formalities and the barbecue luncheon. We have arranged transport for this purpose. The forest is a credit to the previous owners and I now have great pleasure in asking both Mark Farnsworth and Ian Russell to share some of the history with us.

Thanks very much.

9 October 1997
Fourth Annual Meeting Chairman's Address

Last year I told shareholders that Evergreen intended to continue its strategy of growth by acquisitions, with priority given to more mature forests that would compliment the existing estates. I suggested that as a consequence of a sale of Kaingaroa there may well be opportunities for Evergreen to participate in a rationalisation of holdings by the major corporates.

Your Board is pleased to report that we have significantly progressed both the absolute size of Evergreen’s forest holdings and more particularly, the maturity profile, principally through the acquisition of the South Auckland properties previously owned by Fletcher Challenge.

Our goals for the future will be consistent with the patterns we have created in the past and will focus on the following:

• The continued careful management of our existing forest estates and recent plantings.

• Growth, provided acquisitions can be made within our investment criteria.

• Acquisitions which support our cluster approach, principally in the Northland, Auckland/Waikato and the Gisborne and Hawkes Bay districts.

• Funding structures that are innovative and which enhance shareholder value through lower cost of capital.

• Further emphasis on development of an active investor relations programme.

We are confident that our strategy is correct and the fact that we have been able to make substantial progress towards our goals in this last year is evidence of Evergreen’s assured future.

Forest Valuation

Last year I referred to a more conservative approach being taken in assessing forest values. We have indeed seen that the New Zealand market is currently assessing forest investments at higher discount rates and we must expect this to continue in the year ahead given interest rate policies and the high real rates of interest which remain in the New Zealand economy. We are pleased to note that the assessed net asset value attributable to shares on issue by Evergreen has been maintained at $0.89 per share after a year in which we grew the absolute size of our planted forests by almost 100%.

Share Price

Our plans for growth and an increase in the liquidity of Evergreen shares has resulted in improved value recognition in the share price over recent times. Forestry is a long term investment but it is significant that we are now moving towards a period of quite substantial harvest which may commence in the latter part of 1998. We would expect that the commencement of logging and earnings flows that can be measured in a more conventional accounting sense, will be positive for shareholders. The task for the Evergreen Board is to balance reasonably the necessary growth objectives and benefits of scale that will flow from growth with the interests of shareholders looking for yield.

Your Board is confident that both these goals can be accommodated in Evergreen’s plans. The investment focus to the management of our assets is the most important element of Evergreen’s philosophy and your Board is committed to the maintenance of this approach.

Staff

Most of what has been gained in the last year is the direct result of an enormous effort by a small team of people. From time to time I have worked closely with Evergreen employees and I am aware of their dedication and enthusiasm for the task. The interests of shareholders are well served in this respect.

Ladies and Gentlemen, I will now ask our Chief Executive Officer, Mr Mark Bogle to address you on the Company’s operational activities over the last year and to share with you some of our future planning.

18 October 1996
Third Annual Meeting Chairman's Address

Speculation on the outcome of the Kaingaroa Forest sale process overshadowed most of what was happening in the forestry industry over the last twelve months. Understandably investors in this country and offshore saw the outcome of the sale as potentially significant. While investor confidence in New Zealand as a whole and in particular with New Zealand based forest industries remained at a high level, the impact of such a significant transaction on the industry was judged to be material.

While Evergreen is a relatively small participant in forest ownership the rationalisation of major industry holdings of forests and the pricing signal that would be given as a result of the Kaingaroa sale process, were influences which steadied the rate of growth for Evergreen.

With the sale of Kaingaroa having been concluded it is anticipated that a number of ownership rearrangements will take place and Evergreen intends to be a strong participant in forest acquisitions over the course of the next twelve months.

Evergreen’s intention to continue its strategy of timber resource acquisitions in a way which complements the existing age profile and in a way which adds weight to the already attractive maturity profile, is supported not only by the Board and management of Evergreen but is consistently favoured by institutional analysts and investors here and in the North American market. Considerable effort has been made to prepare the ground for future capital raising by presentations and discussions with investors who are traditionally long term investors in the forestry sector. We expect the time and effort applied over the last twelve months will reap rewards for shareholders in the future. This process of investor information and education is an ongoing requirement in this industry.

In the past year we have

• Continued our careful management and enhancement of our existing forest estates.

• We have completed another successful planting programme. Our land bank will be fully stocked by this time next year.

• Tree growth conditions have been very good over the last twelve months and this year’s plantings have benefited from favourable conditions.

• We have acquired for scrip, a further property of 1165 hectares adjacent to our existing holding at West Ho in the Gisborne district.

• We have completed at a minimal cost the establishment of a level one American Depository Receipts facility.

• We have, subsequent to balance date, established a credit facility through our bank, the Westpac Banking Corporation for a total of $20m. This facility carries a zero coupon for three years and the servicing obligations will therefore be aligned to our cashflows as our forests generate income from harvesting in 1999 and beyond.

• Your Directors believe that access to funding of this nature will, together with further equity, provide a worthwhile platform for Evergreen to take advantage of purchasing opportunities during the next year.

• Mark Bogle will talk to you about the operational and estate management issues over the last year. Your Board is satisfied that the processes and procedures that Evergreen has now got in place for the management of the Company’s investments are appropriate and well resourced.

Forest Valuation

There is a recent trend to value forests on a more conservative basis than previously. We have seen that in the assessments undertaken by Groome Pöyry the independent valuers employed by the Board.

While forest values will be affected from time to time as a result of log price assumptions (which are currently at a low stage in the cycle) our valuers also noted in their submission to us that "the New Zealand market is currently examining forestry investments at generally higher discount rates than applied last year due to higher real rates of interest in the economy."

It is important to draw your attention, the impact that assumptions regarding discount rates and log price trends can have on the underlying forest value. The nature of forest valuation is that there will always be value assumptions across a range. In the final analysis it will be Evergreen’s detailed understanding of its own resource and the way in which that resource is managed that will enable us to maximise value.

Share Price

Even on the most conservative assumptions the price attributed to Evergreen stock by the market is low. Our plans for growth and to increase the liquidity of Evergreen shares should materially assist value recognition. Your Directors remain confident that a combination of growth (giving economies of scale), improved liquidity early dividend flows and the favourable industry prospects will collectively provide attractive shareholder returns over time.

Our Staff

In my view, the Board, Mark Bogle and members of his staff have through their efforts clearly reflected their confidence in this industry, and in Evergreen and its undoubted future.

12 October 1995
Second Annual Meeting Chairman's Address

From modest beginnings Evergreen Forests Limited has made significant progress in the year to 30 June 1995.

• Issued and paid up capital increased from 23 million to 97 million shares of a par value of 50 cents each. The investment of $50 million New Zealand through the Boston based U.S. investment Managers Xylem Investments Inc enabled the Company to acquire through scrip issue and property purchase, forest assets with a range of locations and maturity profiles.

• Land and forest holdings under ownership increased from 1364 hectares in 1994 to 14,162 hectares in 1995.

We reported on the purchase of the Merriwa block in Hawkes Bay last year. Planting was partially completed in 1994 and the programme was concluded this year. This block which is some 35 kilometres from the Port of Napier is a prime location and we are pleased with the establishment processes to date.

Through the acquisition of CBS Forests we acquired that company’s forestry right interests on the west coast. These forests are in limited production and harvest revenue on a modest scale enables us to meet our operating costs during our growth phase.

The substantial agro-forestry block at Pouto on the Kaipara Harbour in Northland was acquired contemporaneously with the CBS acquisition. This property comprising 5,738 hectares had established plantings of 2,468 hectares. Some 700 hectares were planted this year and the balance to complete the forest establishment on that block will be planted over the 1996/97 planting seasons. The Pouto Peninsula is a spectacular part of New Zealand and the gently undulating terrain lends itself to plantation forestry. When we acquired the property there was a substantial farming operation in place but these assets have been sold and we are particularly pleased that the purchaser has been Mr Ian Russell who is an experienced Agro-forester and will be using his pastoral farming skills to assist us in our forest establishment programme.

We also acquired a portion of Waipoa Station in Gisborne known as the "Moonlight Block". This property is in an established forestry area and because of its history as a pastoral farm both the nature of the terrain and its aspect are favourable for early forest establishment. This block comprising 4,013 hectares has an existing net stocked area of 693 hectares and of the balance of plantable land 1,385 hectares was planted in the 1995 season with the balance to be planted next year.

• As a consequence, the freehold net stocked area increased from 1,166 hectares in 1994 to 6,236 hectares in 1995. with this area being further increased by 2,561 hectares through planting undertaken in the 1995 season.

• Your Evergreen Board has obtained an independent valuation of our forests through Groome Poyry. That firms assessment of the forest value in June 1995 is 86.5 million, up from 18.6 million in June 1994. As you would have noted in the Annual Report to Shareholders the Directors are aware of the range of forest valuation methods used by industry participants in New Zealand. The Board therefore considered that is was desirable to provide Shareholders with values at a range of discount rates and real price increase assumptions so that Shareholders and the market generally were able to assess the sensitivities of valuation assumptions on Evergreen Forest values. Your Board notes that the net asset backing per share at historical cost equates to 80c per share with the asset backing increasing to $1.10 per share this year using the valuation figures independently provided to the Company. The previous years comparisons, are 96 cents and $1.08 respectively. The Board’s view is that the market is underpricing Evergreen shares.
  
  In order to ensure the market is informed of the Evergreen story, our objectives and expectations, Mark Bogle and myself are taking every opportunity available to talk to the market and more particularly at the moment, to institutions both here and offshore.

• I referred earlier to revenue flows available from the West Coast forest. Our harvest expectations have been enhanced as a result of acquisitions and in 1999 we anticipate having production available from the existing Pouto plantations. As promised your Board has endeavoured to favour acquisitions which provide earlier harvest revenues and therefore the opportunity for earlier dividend flows to our Shareholders.

• Evergreen Forests is uniquely placed to take an investment position in other forestry companies. Our acquisition of 15.6% of Nuhaka Forestry Fund is an example of this. The wood flows available through Nuhaka are complementary to the harvest profile of our Company holdings and the pre-tax distribution opportunity available through the fund will be timely for our Shareholders.

• The administrative arrangements for Evergreen were strengthened at the time of the CBS acquisition. The need for a dedicated Chief Executive and a small but skilled administrative team had been recognised by the Board as a component that would be required at a time of growth. We were delighted to be able to appoint Mark Bogle as Chief Executive Officer of Evergreen Forests Limited and his small but committed team now provide a resource which is appropriate not only to manage effectively and efficiently the Company’s present investments but to undertake significant growth without increasing costs. The Company’s administrative base is in Auckland.

• The international nature of investment in New Zealand is particularly noticeable in forestry. Resource stocks are attractive to U.S. and U.K. investors due no doubt to the predictability of plantation forest investments in New Zealand, the suitability of our climate and the undoubted skill of New Zealanders in the technical, genetic and practical management areas.

• Investor interest in the U.S. suggest that an American depository receipt programme (known as an ADR programme) would be of assistance in creating additional liquidity in Evergreen shares. We are proceeding at very modest cost to establish a sponsored level 1 programme in the U.S.

The last year has been a busy one for your Board, for the Consultants that have been contracted to us and certainly over the last six months for Mark Bogle and his team. It is appropriate that I record my thanks to fellow Members of the Board. Two of our Directors are retiring at this Annual General Meeting. Dennis Neilson as a founding Director has been unstinting in his support for Evergreen.

Mr Neilson’s skills and knowledge within the industry are going to continue to be available to Evergreen and we have contracted Mr Neilson to provide consulting support in the year ahead.

Alan Warner a previous CBS Director is also retiring and Alan has provided sterling service to Evergreen Forests during a very busy transitional period.

To balance the objectives of growth and to do so in a way which recognises appropriately, Shareholder interests in capital growth and in revenue flow through dividends is a challenging task where investment cycles are traditionally of a long term nature. I believe that Evergreen has achieved well in the 1994/95 year and I remain committed and confident to achieving our strategic goal for growth to a point where we have a size sufficient to give us a level of efficiency and sustainability. At that point I am satisfied that there will be worthy rewards for our Shareholders.

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