JSC LATVIAS STATE FORESTS Where nature and technologies meet every - PowerPoint PPT Presentation

JSC LATVIA’S STATE FORESTS Where nature and technologies meet every day Ilga Bērzkalna Head of Development Latvia’s State Forests i.berzkalna@lvm.lv

JSC LATVIA’S STATE FORESTS STATE FOREST MANAGEMENT COMPANY As one of the Baltics’ leaders in efficient and innovative forestry we are an upright, mindful and caring manager of the forests owned by the Latvian government.

JSC LATVIA’S STATE FORESTS STATE FOREST MANAGEMENT COMPANY

LATVIA’S STATE FORESTS CONTRIBUTION TO GOVERNMENT AND MUNICIPAL BUDGETS 1 billion EUR 99.1 96.8 88.5 100.0 June, 2018 85.9 79.7 78.2 73.5 71.0 80.0 58.4 Mill. EUR 60.0 47.3 39.4 37.7 30.6 40.0 27.3 25.1 38.2 18.2 mill. 17.0 35.2 15.1 mill. 20.0 0.0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 State Social Insurance Mandatory Contributions and Real Estate tax Enterprise Income tax Payment to state for use of state capital Total Personal Income tax

~ 1200 EMPLOYEES 22% Secondary, including secondary vocational 1% 14% Up to 30 years Basic Education 28% 77% 31 – 40 years 6% Higher Over 60 years Age brackets 28% 24% 41 – 50 years 51 – 60 years 5

WORK THROUGHOUT LATVIA

BUSINESS PRINCIPLE - OUTSOURCING Infrastructure Forest management building ~ 675 companies > 200 companies ~ 2000 employees ~ 3000 employees Providers of LVM services in total 1060 companies and ~ 7000 employees Timber transportation Harvesting ~ 45 companies ~ 140 companies ~ 160 forwarders ~ 164 harvesters ~ 440 forwarder drivers ~ 210 forwarders ~ 900 operators ~ 800 loggers

+17.5 mill. In 2018 in the next 52.4 million 5 years Forest plants sold 8

Conniflex

FOREST ROADS FOREST ROADS TRANSPORTATION COSTS

TRANSPORTATION COSTS TEMPORARY WOODEN PANEL ROAD 11

Work automatization LVM GEO Mobile Sync LABOUR-INTENSITY COSTS MORE THAN 300 LVM EMPLOYEES Planning Silviculture Roundwood of felling area production 12

Harvesting

183 115 Clients Harvesting machinery teams 160 12 300 Timber trucks 20-50 mill. Harvesting sites variables per day 34 000 70 000 km roads Unique product 110 owners stacks 1 km = NP + EUR 300 000

OPTIMIZING LOGISTICS

Remote sensing data LABOUR-INTENSITY COSTS LGIA INFRARED LIDAR DATA – HEIGHT LGIA ORTHOPHOTO LIDAR DATA – TERRAIN ORTHOPHOTO MAPS MAPS OF LAND COVER LASER FOREST TYPE SATELLITE SATELLITE IMAGES SATELLITE IMAGES IMAGE (LAFTIM) IMAGES SENTINEL -2 SENTINEL -2 (RGB) ASIA AIR SURVEY CO., SENTINEL -1 (INFRARED) LTD. (RADAR) 16

Machine-learning and algorithms for interpreting remote sensing imagery

DRONES Monitoring o Ditches and undergrowth o Soil preparation o Young stands o Weather events

R&D in collaboration with academic and research institutions - Climate change - CO2 emissions - Root rot - Insects … and others

STRATEGIC OBJECTIVES Enhance and develop R&D and innovation products, services, and budget as a percentage knowledge of high- of 5-year average net added value turnover

JSC LATVIA’S STATE FORESTS Where nature and technologies meet every day Ilga Bērzkalna Head of Development Latvia’s State Forests i.berzkalna@lvm.lv