RusForest is a public forestry company operating in Eastern Siberia in Russia
Timber (Forests)
Lease area: 1,194,282 ha
AAC: 1,692,360 m3
Harvesting
Own harvesting: 350,000 m3
Subcontracting: 350,000 m3
Sawmilling
Capacity: 90,000 m3

Wood pellets
Planned capacity till the end of 2015:
30,000 tonnes per year
RusForest value chain
OPERATIONS & PRODUCTS

Magistralny
746,352 hectares leased
Annual Allowable Cut 958,700 m3
Ust-Ilimsk
447,930 hectares leased
Annual Allowable Cut 733,660 m³


Location
The Magistralny unit is located in the Irkutsk region, Eastern Siberia. The forest lease areas are located in Kazachinsko-Lensky district, Irkutsk region.
Forest resources
The Company controls five forest leases covering an area of 746,352 hectares, with an AAC of 958,700 m3. Within the leased areas there is a high concentration of mature softwood, predominately pine and larch (80%).
Sawmill
RusForest Magistralny’s project "Construction of a wood processing plant for the production of dry sawnwood is included in the list of priority investment projects in the forest industry by the Ministry of industry and energy of the Russian Federation No. 942 dated 13.07.2011. The project foresees the construction of a manufacturing complex, including:
- Wood processing plant for the production of dry sawnwood;
- Units for timber harvesting in forest lease areas in Kazachinsko-Lensky district of Irkutsk Region.
Bark and wood waste from sawmilling are used for technological needs and energy production needs.
Pellet mill
The Company is in the progress of construction a pellet mill in 2015
Capacity
Harvesting company Lesprom. Actual annual harvesting volume is about 350,000 m3 with an AAC of 958,700 m3.
The Magistralny sawmill was completed in 2011 and has an annual capacity of 90,000 m3 of sawnwood.
The pellet mill will have annual capacity of 30,000 tons.
Certification
RusForest Magistralny and Lesprom have the following FSC certificates:
- Chain of Custody and Controlled Wood certificate # RA-COC-005999 / RA-CW-005999 (FSC licence code FSC-C110772)
- Forest Management and Chain of Custody certificate # RA-FM/COC-006057 (FSC licence code FSC- C109710).
Contacts
Lesprom LLC / RusForest Magistralny LLC
Russia, 666505, Irkutsk region, Kazachinsko-Lensky district, Magistralny, st. 17 congress VLKSM, 64.
Phone: +7 (39562) 4-10-93; 4-93-40
For purchase enquiries please contact: sales.magistralny@rusforest.com



Location
The Ust-Ilimsk forest lease areas are located in Ust-Ilimsk District, Irkutsk Region and also Tungussko-Chunsky and Kodinsky Districts, Krasnoyarsk Region.
Forest resources
The Company controls seven forest leases covering an area of 447,930 hectares, with an AAC of 733,660 m3. Within the leased areas there is a high concentration of mature softwood, predominately pine and larch (84%). Currently RusForest only focused on managing the forest leases in Ust-Ilimsk and selling right to utilize some of the forest leases by third party at a fee.
Contacts
RusForest Ust-Ilimsk Ltd
666684, Irkutsk region, Ust-Ilimsk, Promploschadka LPK
Phone: +7 (39535) 9-48-82
For purchase enquiries please contact: sales.ust-ilimsk@rusforest.com

Forest assets
1.2 million hectares leased
Harvesting
1.7 million cubic meters AAC
Sawmilling
90,000 cubic meters annual capacity
In Russia, forest land cannot be owned privately but can be leased for up to 49 years. The Company has successfully secured a total of 1.2 million hectares of forest land under lease agreements in its core locations in eastern Siberia. It is of high importance to secure areas of the right forest composition. The forest leases in Magistralny are utilized solely for the Company’s own forest needs, however, in Ust-Ilimsk forest leases are also subleased to third parties.

More important than area leased is the AAC, expressed in cubic meters related to the leased forest assets and also the Company’s ability to monetize/harvest the AAC. Harvesting generates sawlogs and pulpwood. Sawlogs are further processed into various sawnwood products by the Company’s sawmill. Pulpwood is generally sold to pulp mills.


The sawmills in Magistralny process sawlogs, either from own harvesting or purchased, into various sawnwood products. This is the Company’s main product and main source of revenue. Sawmilling output is naturally dependent on supply of raw material in the form of sawlogs but also on the specification being produced, which in turn depends on end client.


Roundwood
Sawnwood
RusForest harvests greater volumes, and a certain percentage of logs have a larger diameter, than we are able to process internally. These excess sawlog volumes are subsequently sold unprocessed, as round wood, both domestically and for export. The Company’s round wood are FSC certified.






RusForest's core product is sawnwood made using the high quality raw material in Siberia mainly pine and larch. The Magistralny sawmill has an annual maximum capacity of 90,000 cubic meters. RusForest provides its customers with sawn timber of numerous different dimensions and specifications. RusForest produces both standard dimensions, in all species, as well as fully customer specific products for a number of different clients. Currently most production is sold to Japan, CIS and the Middle East. The Company’s sawnwood products are FSC certified. Our most common delivery terms is FCA. Most of our products are transported by rail to an applicable Russian port and reloaded for delivery to the final destination.
CORPORATE GOVERNANCE

RusForest is a public limited liability company with its registered office in Stockholm, Sweden. The Company’s head office is in Stockholm, while the Group has a second operational head office in Moscow. The average number of employees in 2014 was 1,190. The Company adheres to the Swedish Code for Corporate Governance. Management and shareholders of the Company has Extensive Russian forest industry experience.
Whistleblower PolicyDownload RusForest's Whistleblower Policy
Articles of AssociationDownload RusForest's Articles of Association
Corporate StructureDownload RusForest's Corporate Structure
Certified AdviserPareto Securities AB (Tel: +46 8 402 50 00)
Exchange ListingNASDAQ First North. Ticker Symbol: RUSF
Auditors Öhrlings PricewaterhouseCoopers AB
MANAGEMENT
Anton BogdanovCEO, RusForest Management
Anton Bogdanov has been CEO of RusForest Management Company since February 2014 and COO of RusForest since March 2013. He is a seasoned Russian forestry executive and was previously CEO of Nova Management Group, which operates Lesresurs, a Russian forestry company in Eastern Siberia with 372,000 m3 of annual allowable cut ("AAC") and 170,000 m3 of annual sawnwood capacity. Lesresurs is one of the largest Russian suppliers of sawnwood to Japan.

Anders F. BörjessonCEO, RusForest AB
Anders F. Börjesson is employed as General Counsel and CEO of the Swedish holding company, RusForest AB (publ). He also serves as General Counsel to the Vostok Nafta Investment Ltd group and was previously a transaction lawyer at Mannheimer Swartling in St. Petersburg and Moscow. Mr. Börjesson lives in Stockholm, is a Swedish citizen and is fluent in Russian. He holds a law degree from Stockholm University and an LL.M. from NYU School of Law. He is admitted to the New York Bar.

Gustav WetterlingCFO, RusForest AB
Gustav Wetterling was appointed CFO of RusForest in January 2014. Mr. Wetterling joined RusForest from Black Earth Farming Ltd. where he was Director of Procurement and previously Director of Investor Relations. He has also worked for Vostok Nafta Investment Ltd. and Svenska Handelsbanken. Mr. Wetterling is a Swedish citizen and is fluent in Russian. He holds a Master of Science in Economics and Business from the Stockholm School of Economics.

BOARD OF DIRECTORS
Alexander RudikChairman of the board since 2015, Shareholder since 2013
Alexander Rudik started his banking career in 1994 and is the founder and president of Nova Capital LLC.
Before founding Nova Capital in 2011, he established the Region Group of Companies, a leading Russian investment group, in 1995 and remained its principal shareholder and president until 2011. He has served as Vice Governor of a constituent entity of the Russian Federation and on the board of directors of Russian Timber Group LLC. He also chaired the Subcommittee on the Wood Processing Industry and Housing Construction of the Russian Federation Chamber of Commerce’s Committee on the Development of the Timber Industry and Forestry and is a former member of the Forestry Board of the Russian Federation Ministry of Natural Resources. Alexander Rudik is independent in relation to RusForest and its management, but not in relation to its major shareholders due to his affiliation with Nova Capital.
Alexander Rudik is a member of the general council of the all-Russian public organization Business Russia.

Per BriliothMember of the Board since 2009
Per Brilioth is a graduate of Stockholm University and holds a Master of Finance from the London Business School. Per Brilioth is the managing director and a Board member of Vostok Nafta Investment Ltd since 2007 and has worked closely with the Russian stock market for many years. Per Brilioth is independent in relation to RusForest, its management and its major shareholders.
Per Brilioth is a Board member of Vostok Nafta Investment Ltd, Avito AB, X5 Group AB, Tethys Oil AB and Svenska Fotografiska museet AB.

Peter NilssonMember of the Board since 2013
Peter Nilsson is CEO of Bergs Timber AB and has more than 30 years of forestry experience. Peter Nilsson served as COO of RusForest from October 2012 through March 2013, before joining the RusForest board of directors. Previously, Peter Nilsson was CEO of Södra Timber AB and Geijer & Söner AB. He has also held various positions at SCA Timber AB, including CEO of the UK operations. Peter Nilsson has served on several boards in the sawnwood distribution and homebuilding industries.
Peter Nilsson is independent in relation to RusForest, its management and its major shareholders.

Camilla ÖbergMember of the Board since 2011
Camilla Öberg holds a Degree in Economics and Business Administration from Stockholm School of Economics. From 2006 to 2011 Camilla Öberg was employed at the IT-company Logica, and was CFO of Logica Sweden AB from 2007. Between 1998 and 2006 Camilla Öberg was employed at WM-data, where she, inter alia, worked as head of IR and Group Treasury. Camilla Öberg also worked as CFO of one of WM-data’s subsidiaries and as business controller for one of four business areas. During her first two years at WM-data Camilla Öberg worked as CFO of Företagarservice. Before her time at WM-data, she worked as, inter alia, CFO of Integro AB, as CFO of Lexicon and in accounting and external reporting at SEB. Camilla Öberg is independent in relation to RusForest, its management and its major shareholders.
Camilla Öberg is a Board member of Black Earth Farming Ltd. She is also CFO for Cybercom Group AB. Camilla Öberg is also a Board member of subsidiaries of Cybercom Group AB.

BOARD COMMITTEES
The Board of Directors is ultimately responsible for ensuring satisfactory control of risk management, reporting, financial accounting and similar issues as well as that the company's financial reports are produced in accordance with legislation and applicable accounting standards. In order to support the execution of the Board’s supervisory role in audit issues, at the annual general meeting, held 20 May 2010, it was resolved that the Company shall have an Audit Committee. This committee reports to the Board and its decision-making is restricted to specific areas. The audit committee shall consist of up to three members with one board member acting as chairman for the committee.
At the annual general meeting, held 20 May 2010, it was also resolved that the Company shall have an Operational Committee, consisting of up to three members and one board member acting as chairman for the committee. This committee reports to the Board and its decision-making is restricted to specific areas.

AUDIT COMMITTEE
The audit committee shall function as the primary communication channel between the board and the Company’s auditors and shall be responsible for the preparation of the board’s work to assure the quality of the Company’s financial reporting. The audit committee has a particular responsibility to review and bring any problems with the internal control of financial reporting to the Board of Directors’ attention. Potential reported shortcomings are followed up by management and the audit committee.
The audit committee shall address any critical accounting issues and review the financial reports issued by the Company. Among other the following issues and reports shall be considered:
– matters of internal control and application of relevant accounting principles and laws.
– discuss any uncertainties in presented values, changes in estimates and appraisals.
– significant events after the reporting period.
– address any established irregularities.
– the Company’s annual report and the interim reports which are prepared four times annually shall be reviewed.
– discuss any other issues than the above that might affect the quality of the Company’s reporting.

The audit committee meets with the Company’s auditors on a continuous basis (at minimum once a year) to keep informed of the direction and extent of the audit. The audit committee and the auditors shall also discuss the coordination between internal control and external audit and the auditors’ views on potential risks to the Company’s quality of reporting.
– The audit committee shall set the guidelines for what other services than audit the Company may procure from the auditors.
– The audit committee shall on an annual basis in connection with the end of the financial year, evaluate the performance by the Company’s auditors. They shall inform the nomination committee of the result of the valuation, to be considered when they nominate auditors for the AGM.
– Assist the nomination committee in the process of nominating auditors and remuneration for the auditors.
– The audit committee shall review the annual and interim reports and make recommendations on these to the Board of Directors.

OPERATIONAL COMMITTEE
The role of the operational committee is to make suitable investment recommendations and review the budget and operations in the operating units on a regular basis. These recommendations must at all times be in line with the overall strategy of the Company as decided by the Board of Directors.

CORPORATE RESPONSIBILITY
RusForest adopted an environmental policy in 2011 that requires the Company to work with materials and methods in a way that has minimal impact on the internal and external environment. The Company is constantly working to raise the importance of environmental awareness with all employees and to comply with the environmental demands from authorities, customers and the market.
RusForest has also completed the certification process for the majority of its operations according to Forest Stewardship Council (FSC) rules. FSC certificates for the Company’s operations were issued by Rainforest Alliance, the global leader in forest certification:
– The majority of the Company’s forest units located in the Irkutsk regions of Russia received the FSC forest management and chain of custody certificates.
– RusForest’s main sawmill Magistralny and its wholesale export operation (RusForest Trade House) also received the chain of custody certificates for their products and raw materials.

Following the principles of the Forest Stewardship Council, RusForest is making every effort to prevent the sale and receipt of wood from the following categories:
– wood harvested from areas that violated traditional or civil rights;
– wood harvested in forests that are not FSC certified and where conservation values are threatened;
– wood from genetically modified (GM) trees;
– illegally logged wood.
RusForest pays special attention to the social and environmental impacts of its business activities in Russia. The Company maintains highly valuable forests in close cooperation with local communities and leading environmental organizations such as WWF and Greenpeace.

CORPORATE GOVERNANCE REPORTS
RusForest is listed on the NASDAQ First North market place, as such it is not obliged to, apply the Swedish Code of Corporate Governance (the "Code"), but has chosen to do so anyway to uphold the highest standards of corporate governance. The Code forms part of corporate Sweden's self-regulation with the purpose of improving corporate governance in Swedish listed companies. RusForest has applied the Code since 2013.
The Code is based on the principle of "comply or explain". This means that a company that applies the Code does not necessarily have to follow every rule of the Code in every instance. If the company finds that a certain rule is not appropriate taking into account the particular circumstances at hand, it may deviate from this rule. Such deviations must be accounted for.
RusForest will now annually publish a corporate governance report in accordance with the rules of the Swedish Annual Accounts Act and the Code. The corporate governance report describes how the company has applied the Code and accounts for deviations (if any) from the Code.
Below you will find the corporate governance reports, including the report on internal control and risk management.


INVESTORS


AGM 2015
AGM 2014
General Proxy Form
Extraordinary General Meeting, 11 July 2013
AGM 2013
Extraordinary General Meeting, 1 February 2013
AGM 2012
Extraordinary General Meeting, 1 March 2012
AGM 2011
Extraordinary General Meeting, 15 April 2011
AGM 2010
Extraordinary General Meeting, 24 June 2010
Extraordinary General Meeting, 8 October 2010
Recapitalisation 2013

Rights Issue 2012

Rights Issue 2010

Share Information
ISIN: SE0005132511
Exchange listing: NASDAQ OMX North
Ticker symbol on First North: RUSF
Number of shares at 30 June 2015: 132,033,881
Outstanding Options
Exercise Price (SEK): 2.93
Outstanding: 900,000
Expiry Date: 31 December 2016
Analyst Coverage
Pareto Securities AB, Sergej Kazatchenko
Tel: +46 8 402 5065
Email: Sergej.Kazatchenko@ParetoSec.com
Remium AB, Gustaf Ericson
Tel: +46 8 454 32 38
Email: Gustaf.Ericson@Remium.com
Profile: view here
Largest Shareholders at 30 June 2015
Shareholders
No. of shares
Share %
Nova Capital
33,500,000
25.4%
Merrill Lynch International
12,360,799
9.4%
Avanza pension
10,936,382
8.3%
Nordnet Pension
3,821,268
2.9%
Credit Suisse Sec Europé Ltd
3,015,175
2.3%
Swedbank AS
2,739,689
2.1%
Morgan Stanley and CO LLC, W9
2,568,388
1.9%
Jeffrey Adams secrest revokable trust
1,979,037
1.5%
Banque Carnegie Luxembourg
1,936,405
1.5%
Jesihemma Limited
1,785,409
1.4%
Client Long Timer Hill
1,747,204
1.3%
Miura Holdings Ltd
1,297,249
1.0%
UBS Switzerland Client Acc.
1,000,600
0.8%
Alexander Rudik
994,259
0.8%
Maxator Holding
923,125
0.7%
Other
51,428,892
39.0%
Total
132,033,881
100%
Insider List
Insider
Position
Shareholding
Alexander Rudik
Chairman of the Board
993,704
Per Brilioth
Board Member
272,855
Peter Nilsson
Board Member
45,000
Camilla Öberg
Board Member
3,500
Anton Bogdanov
CEO, RusForest Management
389,716
Anders Börjesson
CEO, RusForest AB
175,000
Gustav Wetterling
Group CFO, RusForest
85,000
Bo Lagerström
Auditor, Öhrlings PricewaterhouseCoopers AB

Insider transactions during last 12 months
Date
Insider
Type
Quantity
Total
2015-06-25
Alexander Rudik
Acquired
431,323
993,704
2015-06-23
Alexander Rudik
Acquired
40,000
562,381
2015-06-22
Alexander Rudik
Acquired
80,000
522,381
2015-06-18
Alexander Rudik
Acquired
51,319
442,381
2015-06-04
Alexander Rudik
Acquired
60,000
391,062
2015-06-04
Anders Börjesson
Acquired
25,000
175,000
2015-06-04
Anton Bogdanov
Acquired
3,250
389,716
2015-06-03
Alexander Rudik
Acquired
20,000
331,062
2015-06-03
Gustav Wetterling
Acquired
3,100
85,000
2015-06-02
Gustav Wetterling
Acquired
12,000
81,900
2015-06-02
Alexander Rudik
Acquired
79,502
311,062
2015-06-02
Anders Börjesson
Acquired
16,667
150,000
2015-06-01
Anton Bogdanov
Acquired
37,500
386,466
2015-05-29
Anton Bogdanov
Acquired
10,966
348,966
2015-04-28
Alexander Rudik
Acquired
50,000
231,560
2015-04-23
Gustav Wetterling
Acquired
2,900
69,900
2015-04-17
Gustav Wetterling
Acquired
19,000
67,000
2015-04-02
Per Brilioth
Acquired
50,000
272,855
2015-04-01
Anton Bogdanov
Acquired
28,000
338,000
2015-02-24
Anton Bogdanov
Acquired
10,000
310,000
2015-02-20
Anton Bogdanov
Acquired
28,161
300,000
2015-02-06
Anders Börjesson
Acquired
33,333
133,333
2015-02-04
Anton Bogdanov
Acquired
20,000
271,839
2015-02-03
Anton Bogdanov
Acquired
166,039
251,839
2015-01-26
Gustav Wetterling
Acquired
7,500
48,000
2015-01-08
Gustav Wetterling
Acquired
17,000
40,500
2014-12-03
Alexander Rudik
Acquired
30,000
181,560
2014-11-28
Alexander Rudik
Acquired
40,000
151,560
2014-10-15
Anton Bogdanov
Acquired
12,000
85,800
2014-10-08
Alexander Rudik
Acquired
50,000
111,560
2014-09-01
Matti Lehtipuu
Acquired
30,000
70,000
2014-04-29
Gustav Wetterling
Acquired
9,500
23,500
2014-04-11
Alexander Rudik
Acquired
8,000
61,560
2014-04-10
Anders Börjesson
Acquired
20,000
100,000
2014-04-04
Anders Börjesson
Acquired
30,000
80,000
2014-04-02
Paul Putz
Acquired
10,000
75,000
2014-04-02
Alexander Rudik
Acquired
30,000
53,560
2014-04-02
Anton Bogdanov
Acquired
43,000
73,800
2014-04-01
Alexander Rudik
Acquired
23,560
23,560
2014-04-01
Per Brilioth
Acquired
50,000
222,855
2014-03-13
Paul Putz
Acquired
20,000
65,000
2014-01-17
Peter Nilsson
Acquired
25,000
45,000
2014-01-13
Peter Nilsson
Sold
21,000
20,000
Financial Calendar
28 May 2015
Q1 Report 2015
28 August 2015
Q2 Report 2015
27 November 2015
Q3 Report 2015
CONTACTS
RusForest AB (publ)
Hovslagargatan 5
SE-111 48 Stockholm
Sweden
Tel: +46 8 771 85 00
Fax: +46 8 545 015 54
Email: info@rusforest.com

RusForest LLC
1st Truzhenikov Lane 12, bldg 2
119121, Moscow
Russia
Tel: +7 495 980 24 13
Fax: +7 495 980 24 13
Email: info@rusforest.com

IR Contact
Gustav Wetterling
Group CFO
Tel: +46 8 771 85 00
Fax: +46 8 545 015 54
Email: info@rusforest.com

Sales Teams
sales.magistralny@rusforest.com
sales.ust-ilimsk@rusforest.com