Project tambora august 2016

“PROJECTTAMBORA”UniqueAgri-BusinessOpportunity

EastIndonesia

August2016

Introduc)on

•  FACConsul)ng(the“Founder”)isseekingequityinvestorpartnersfor“ProjectTambora”,agreenfieldagricultureprojectinIndonesia(NTB);

•  Despiteanabundanceofwaterandfer)leland,Indonesiaremainsanetimporterofmanyfoodcropsandisfarfromachievingitslong-statedgoaloffoodself-sufficiency;

•  TheProjectaimstotakeadvantageofthechronicundersupplyofdomes)callyproducedvegetablesbyproducingstaplevegetablecropsthroughouttheyear;and

•  Exportqualitysweetcorn,shallotsandchilliwillberetailedwithinIndonesia,primarilyJavaandregionalexportmarkets.

“Equitypartners”sharecommonobjec)vesandvision

CommercialobjecHves•  Developthebusinesstoachieve+100%IRRover10years,producingexportqualitystaple

vegetablecropsthroughouttheyear-thustakingadvantageofthethechronicundersupplyofdomes)callyproducedvegetables.

EnvironmentalandSustainabilitypolicy•  ImplementsustainableGoodAgriculturalPrac)ces(GAPs)aimedatpes)cide-freeproduce

andavoidingprac)cesthatmayimpacttheenvironment;and•  Wherepossible,fossilfuelsystemswillbereplacedwithcleanorrenewableenergysystems

tominimizeourcarbonfootprint.

CorporateandSocialresponsibility•  Weaimtoprovideatleast150full)mejobstothesurroundingcommunity;•  Werecognizetheneedtodeveloplocalsmallholdercapacityandproduc)vityandsupport

ourcommuni)esindeliveringsmallholderexportqualityproducetohighendmarkets;and•  Bydemonstra)ngourcommitmenttoCorporateSocialResponsibilityweaimtoalignour

businessvalues,purposeandstrategywiththeneedsofourclients,whilstembeddingsuchresponsibleandethicalprinciplesintoeverythingwedo.

INDONESIAOVERVIEW

STAPLEFOOD–VEGETABLEPRODUCTION

Indonesiansconsiderchiliandshallotsasstaplefoodsanddemandforsweetcornisincreasing

•  Morethan80%ofIndonesia’svegetableproduc)onoriginatesfromJava;•  Shortrota)onvegetablecropsareproducedinrota)onwithrice,themaincrop;•  Javaclimateis“wet-tropical”–typicallyunpredictableprolongedwetanddryperiods;•  Adversesitecondi)ons(Soilsandclimate)inJavaresultinlimi)ngyieldbyatleast50%.

TheFounderiden)fiedsignificantopportunitytoproducehighvalueandhighdemandvegetables(sweetcorn,shallotsandchili)inEastIndonesia,andhavedevelopeda

cap)velogis)csolu)onthatshouldaddresstransporta)onchallenges

Javaisthemainvegetableproducerandmarketforvegetables

Vegetablecropsrequirewelldrainedsoils-whereasricethrivesinsaturatedsoils

•  Mechanizedlandprepara)onisnotpossibleonpaddyfields.Consequentlypoorqualityseedbedprepara)onaffectsyieldandhighlaborcostformanuallandprepara)on;and

•  UnseasonalheavyrainaffectsIndonesianChili,Shallotandsweetcornsupply(higherprices)becauseofthesesitecondi)ons

Conclusion:VegetableyieldpotenHalislimitedby“ricepaddy”sitecondiHons

Adverseweather(rainfalldistribu)on)isanotherkeylimi)ngfactorforchili,shallotandsweetcornproduc)oninJava

Javaislocatedinwet-tropicalclimate

•  Prolongedwetseason(7-8months)anddryseason(3-4months);•  Verywetperiods(+200mm/month)arecommonfor4to5monthsinayear;•  Prolongedwetweather(+150mm/month)+cloudycondi)onsaffectyieldandquality;and•  Prolongeddryweather(withoutirriga)on)alsoresultinreducedyields.

Java Malang–EastJava

UndersupplyofstaplefoodandpoorqualityarethemaindriversofsupplyfluctuaHons&volaHleprices

Drysub-tropicalclimateisbegersuitedtoyear-roundvegetableproduc)on

EastSumbawarainfalldistribu)onismorepredictable:•  ±150mm/monthover4monthsand

only1verywetmonthinayear(+200mm);

•  Minimalinterferenceisan)cipatedtotheplan)ngandharves)ngschedulesthereforeminimalimpactonsupplyandqualityisexpected;

•  Drymonthrainfalldistribu)onrangesfrom0to60mmpermonth;and

•  Withirriga)on,drysub-tropicalclimateofSumbawaisbegersuitedforyear-roundvegetableproduc)on.

EastSumbawa-Indonesia

Dompu–DrySub-tropicalClimate•  Mainrainfalldistribu)onover6mths:±1,100mm•  Greaterlevelsofsolarradia)on(lesscloudcover)

Privateownedland(HGU1,142Ha)locatedinDompuisreadytobeacquired

MarketResearch

Tradi)onalwetmarketsandsmallstallsaccountfor85%ofretailtrade

MinistryofTrade(theMOT)Regula)onNo.70of2013:•  80%ofallgoodssoldateach“ModernStore”mustcompriselocallyproducedgoods;•  Theregula)onfavorslocalproducersofhighqualityproducetoaccessmodernstores;•  Modernretailersaccountfor15%oftheretailmarket;•  Superandhypermarketsrepresented60%ofmodernretailoutletsandretailmarket

sharecon)nuestoincrease;and•  “ModernStores”donotofferfavorablepaymentterms(+60days)forproducers.

ChiliMarket

Indonesiafreshchiliproduc)onislimitedto4-5monthsinayear(avoidingwetandverydryseasons)

•  Themainchiliproduc)onperiodistradi)onallyduringwet&marginallydryperiods(May-JuneandSept-Oct);

•  Underop)mumcoldstoragecondi)ons,Chilishelflifeislimitedto2-3weeksandlessthan3dayswithoutpostharvestpre-coolingandcoldstorage(tradi)onalproduc)on);

•  ProjectTamboraintendstoproducechiliallyearroundandthecoldchainwillbedevelopedtarge)ngmaximumshelflife;and

•  Addi)onalareawillbedevelopedtotakeadvantageoftradi)onallowsupplyperiods

©DocumentcopyrightofFAC

Rainfall'DistributionIndex

Java'Rainfall Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec

Smallholders'Planting'PlanSmallholders'Harvesting'Plan

Java'Chili'Prices

Sumbawa'Rainfall Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec

E.Sumbawa'Irrigated'PlantingE.Sumbawa'Harvesting'Plan

Java'Chili'Prices

2.5'Ha'per'Week2.5'Ha'per'Week

Higher'Price Lower'Price Higher'Price Lower'Price Higher'Price

Sumbawa'Chili'Production'Plan'

Malang'E.Java'L'Traditional'Chili'Crop'Production'

Rainfed'Crops Irrigated'Crops'Limted'Production Harvest'Peak Limited'Production Harvest'Peak Limited'Production

Higher'Price Lower'Price Higher'Price Lower'Price Higher'Price

Very'Wet'Months Wet'Months Marginal'Dry'Months Very'Dry'MonthsOver'200mm'Rain 100'L'200mm'Rain 50'L'100mm'Rain <'50mm'Rain

ProjectTamboraBaseCasemodelisbasedonIndonesianchilimarketdemandandtradi)onal(wet)marketpricesforJava

•  Themarketprefersfreshchili(80%)comparedtodriedchili(20%);

•  Threetypesofchiliareconsumed:-  RedChili(50%)-  Bird’sEyeChili(42%)-  Greenchili(8%);

•  Small(BirdsEyeChili)retailprice/kgishighercomparedtolargeandgreenchili;

•  Largeredchiliisingreatestdemandduringreligiousfes)veseasons;and

•  Tradi)onalwetmarketprices(Jan-Feb2015)rangefromRp15,000–Rp40,000/Kg(variablequality)

RedChiliharvestedarea2001-2011

ProjectTamborarevenueforexportqualitychiliisconservaHvelybased

onRp17,000/kg

High-endmarketopportuni)eswillbeexploredtoincreaserevenuebasedonsuperiorqualityandregularsupply

•  Small(BirdsEyeChili)istypicallymoreexpensivethanlargechiliandredchiliismoreexpensivethanthegreenchilivarie)es;and

•  Jan-Feb2015JakartasupermarketpricesrangefromRp99,000toRp159,000perKg.

ProjectTamboraaimstoretail+50%exportqualitychilitolocalhigh-endwholesalersandexportmarkets

SHALLOTS

ShallotsproducedinJavaaretradi)onallyharvestedfromMaytoJuly(avoidingverywetandverydryseasons)

Javashallotsaretypicallyplantedinwetmonths(FebruarytoApril)onex-paddysitesandharvestedfromMaytoJuly(marginallydrymonths).

•  Shallotshavelowtolerancetoprolongedwetsoilcondi)ons(notsuitedtoverywetmonths)andduringthedriermonthsrequiresirriga)on(500-600mm);and

•  Shallotsproduc)onwilltargetperiodsofreducedsupply(SeptembertoApril).


Rainfall'DistributionIndex


Smallholders'Planting'PlanSmallholders'Harvesting'Plan

Java'Shallot'Prices


E.Sumbawa'Irrigated'PlantingE.Sumbawa'Harvesting'Plan

Java'Shallot'Prices Higher'Price Lower'Price Higher'Price2.5'Ha'per'Week

Malang'E.Java'K'Traditional'Shallot'Crop'Production'

Rainfed'CropsLimted'Production Harvest'Peak Limited'ProductionMedium'Price Lower'Price Higher'Price

Sumbawa'Shallot'Production'Plan'

2.5'Ha'per'Week

Very'Wet'Months Wet'Months Marginal'Dry'Months Very'Dry'MonthsOver'200mm'Rain 100'K'200mm'Rain 50'K'100mm'Rain <'50mm'Rain

ProjectTamboramodelforshallotproduc)onisalsobasedonJavamarketdemandandJavatradi)onalmarketprices

•  WetMarketaveragepricesrangefromRp15,000toRp40,000/kgovertheyear.Duringperiodsofcri)calshortage,tradi)onalwetpricesexceedRp40,000/Kg;

•  Governmentcontrolsimportpermits,andinrecentyearsallowedimportsof60,000Mt;and•  Feb2015supermarketpriceforShallotsaveragedRp75,000/Kg(retailedin500gbags)

ProjectTamborarevenueforexportqualityshallotisconservaHvely

basedonRp18,500/kg

SWEETCORN

Indonesiasweetcornismostlygrownonex-paddysitesavoidingextremelywetandextremelydryseasons

•  EastWestseedsreporttotalsweetcornacreageinIndonesiaat75,000Ha(yieldsaverage<10Mt/Ha);

•  Mostsweetcornisplantedasashortseasoncroppriortoriceorarerricecoincidingwithdriermonths;and

•  SignificantlylesssweetcornisproducedfromJulytoJanuaryresul)ngin20-30%higherprices

EastJavaMalangIndonesianwettropicalregionshave

3cornproduc)onseasons:-  1stcropNovembertoFebruary(49%)-  2ndcropMarchtoJune(37%)-  3rdcropJulytoSeptember(14%)

Javasweetcornistypicallygrowninrota)onwithriceduringverywetandwetseasons

•  Javasweetcorn(ex-paddysites)produc)onandpricesareaffectedbyadverserainfall;•  Sweetcornyieldsareretardedbyheavyandprolongedrain(poordrainagecondi)ons)

thatcombinewithprolongedcloudycondi)ons.

ProjectTamboraaimstoproduceexportqualitysweetcornthroughouttheyear,takingadvantageofreducedproducHoninJavaandNTBfromJulytoDecember

Rainfall'Distribution

Index


Smallholders'Planting'Plan

Smallholders'Harvesting'Plan Less'Prod. Limited'Production

Java'Sweet'Corn'Prices Medium'Price


E.Sumbawa'Irrigated'Planting

E.Sumbawa'Harvesting'Plan

Java'Sweet'Corn'Prices Medium'Price

Sumbawa'Sweet'Corn'Production'Plan'

2.5'Ha'per'Week

2.5'Ha'per'Week

Lower'Price Medium'Price Higher'Price

Lower'Price Medium'Price Higher'Price

Harvest'Peak Less'Production

Rainfed'Crops Irrigated'Crops' Water'limitations Rainfed'crop

Very'Wet'Months Wet'Months Marginal'Dry'Months Very'Dry'Months

Over'200mm'Rain 100'O'200mm'Rain 50'O'100mm'Rain <'50mm'Rain

Malang'E.Java'O'Traditional'Sweet'Corn'Production'


Comparedtomostotherstaplevegetableswithoutop)mumcoldstoragecondi)ons,sweetcornshelflifeislessthan36hours

•  Sweetcornshelflifeunderop)mumcoldstoragecondi)ons(0-2°C)islimitedto6to10daysandlessthan36hourswithoutop)mumcoldstoragecondi)ons;

•  Forthisreasonsupplyislimitedtosmallholderproduc)onincloseproximitytomarket;and•  Varietyselec)ontakesintoconsidera)onConsumerpreference(sweettas)ng)and

producerpreference(highyield,diseaseresistanceandlongshelflife);

ProjectTamboraaimstobeIndonesia’sleadingproducerandpreferredsupplierofaffordablesuper-sweetvariety

•  Sweetcornistradi)onallyretailedinwetmarkets(withhuskon)inopencontainersorbyweightwhereasinsupermarkets,sweetcornisusuallyretailedinvacuumpackedcontainerswithoutthehusk;

•  Tradi)onalwetmarketpricesaredrivenbylocalsupplyandquality:

PricesrangefromRp1,500toRp2,500percobequaltoRp9,000–Rp25,000/kg

•  DuringJan-March2015(tradi)onallypeaksupplyperiod),Jakartasupermarketswereretailingpre-packedsweetcornatRp19,900/Kg;and

•  ProjectTamborarecognizeanexportmarketopportunityforprocessedsweetcornproducts-ourlandcapacityandcapabilitysuitslargescalesweetcornproduc)on

ProjectTamborarevenueforexportqualitysweetcornisconservaHvely

budgetedatRp9,000/kg

ProjectTamborabudgetedprice/kgforexportqualityproducetobulkwholesalersandtradersisconsidered“conserva)ve”

Fresh RpPrice/kg RpPrice/kg RpPrice/kgProduce WetMarket Supermarket ProjectTambora

Chili 15,000-50,000 75,000–150,000 14,0000------------------------------------------------------------------------------------------------------------Shallots 20,000-50,000 50,000–85,000 18,500------------------------------------------------------------------------------------------------------------Sweetcorn 9,000–25,000 20,000-30,000 9,000

AlternaHveCrops

ExportMarket–SnackFood

Indonesiaimports>100,000Mt/Ann

Alterna)vehighvaluevegetablecropswillbeproducedonasmallerscaletoevaluatefeasibilityandmarketdemand

Edamame(VegetableSoybean)•  Vegetablesoybean(Edamame)isanidealcrop

rota)onop)on(addsnitrogentothesoil)andisgrownonalargescaleinEastJavaforAsia’shigh-valueexportmarket(snackfood);and

•  ProducethatdonotmeetexportqualitystandardsisorenretailedinsupermarketsatRp30,000toRp40,000/kg.

Garlic•  Indonesiameets90percentofitsgarlicdemand

fromimports,withdomes)cproduc)onstandingat13,000tonsperyear;

•  Marketprices:Rp50,000–Rp100,000/kg

Soybeanandgarlicwillbeproducedonsmallscale(trialcrops)toevaluate

sitesuitability,varie)esandtodemonstratesupplycapabilityforpoten)allocalandexportmarkets.

PROJECTTAMBORAMARKETINGSTRATEGY

•  ProjectTambora’smarke)ngstrategyisbasedonretailingsweetcorn,chiliandshallotsinbulktowholesalersandtradersfromcoldstoragewarehousefacili)esinJava;

•  Smallvolumes(non-exportquality)mayberetailedfromfarmgatetolocaltradersforretailingtolocalmarkets(Sumbawa,LombokandBali);and

•  Mediumandlong-termobjec)veaimtosecureregularordersfromhigh-endmarkets.

ATI$$Warehouse$

ATI$$Farm$

Weekly$$Sea$Freight$

Exportmarketopportuni)esforprocessedsweetcorn(canningand/orfrozen)andedamame(frozenproducts)wouldbeexplored(tou)lizeallavailableland)

PRIVATELANDAVAILABLEFORACQUISITION

Privatelyownedlandsuitableforyear-roundirrigatedcashcroppingisavailableforacquisi)on

•  ThereisanopportunitytoacquirealocalcompanylocatedontheislandofSumbawa,NusaTenggaraBarat(NTB)Indonesia;

•  TheCompanyownstwoadjoiningHGU’smeasuringatotalof1,142Ha;and•  Atleast70%oftheHGUarea(800Ha)isconsideredsuitableforirrigatedcropping;

OurBaseCasemodelisbasedondevelopingirriga)onon120Ha,providingsignificantopportunityforexpansion

Landscapeandtopographyiscomparabletotemperatesavannahanddesirableforintensivemechanizedagriculture

•  Approximately70%(800Ha)isconsideredarableandthesesoilscomplywithSoilClassIcharacteris)cs(Australianstandards);

•  OurBaseCasemodelassumesthedevelopmentof120Haforirrigatedcashcrops;•  Theremainingarableland(680Ha)willbedevelopedbasedonmarketdemand;and•  Infrastructurewillbedevelopedonnon-arableland.

Above&Road&Landscapes&

Below&Road&Landscapes&

Sitesuitabilityassessmentwasconductedin2014

SiteAssessmentconcluded:

ü  Siteislocatedinasub-tropicalclimateandwithapproximately800Haarableland;ü  Climate,soilsandtopographysuitssweetcorn,chiliandshallotsallyearround(all

threecropsarecommontothisregion);ü  Soilsarefavorableforrepeatedirrigatedcropping(virginanddeepsandyloam);ü  Presenceofalargeunder-groundaquifer(watersourceforirriga)on);ü  Nooccupa)onbycommuni)es(noaccesstowater),theareaissparsely

populated;andü  Morethan2kmofdeep-watercoastlineoffersopportunitytoestablishadeep

waterport.

Thedrysub-tropicalclimateiswellsuitedtoyearroundproduc)onofChili,shallotsandsweetcorn

Month Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec

Kempo:Rainfall 220 225 220 190 100 0 0 0 0 85 155 140Min:Temp 21 21 21 21 20 18 18 19 20 20 21 21Max:Temp 30 30 30 30 30 30 30 31 31 31 30 30Rain:days 22 20 18 19 13 0 0 0 0 5 14 23

Eto 5 5 5 5 6 6 6 6 6 6 5 5High:RH

KeyClimateIndicators

•  AnnualRainfallSub-tropicalrainfall:1,300mmWegestmonths:December–February(20-23raindays)Drymonths(norain):Jun–Sept

•  Temperature-SummerTemperaturesMax31°C/Min21°C-WinterTemperaturesMax31°C/Min18°C

MeanDailyTemp:24°C

KeySiteIndicators•  Welldrainedsoils•  Slightslope

Site suitability

criteria

Dompu / Kempo Data Sweet corn, Chili & Shallot requirements

Summer Temp Range

Winter Temp Range

Mean Daily Temp

Summer: Max 31°C / Min 21°C

Winter: Max 31°C / Min 18°C

Mean Daily Temp: 24°C

Maximum: 30-32

Minimum: 10-18

Optimal: 20 -30

Seasonal Rainfall

Annual Rainfall

Summer: 1,200 – 1,250 mm Winter: 100- 150 mm

1,335 mm

3.5 to 4 Ml/Ha (Drip irrigation) Frequent applications

Susceptible to water logging

Solar radiation % Jan- Feb: 42% - 49%

Mar- Dec: 69% - 93%

Maximum solar radiation required

Relative humidity % Jan- May: 79% - 84% June - Dec: 66% - 77%

High humidity increases the incidence of fungal disease

Wind Speed (Knots) Ranges from 1 – 7 Knots Susceptible to strong winds

Evaporation (mm/day)

Jan- May: 5 mm (Summer)

June - Dec: 6 mm (Winter)

Sufficient supplementary irrigation at various stages of growth

Soils Sandy loam (well drained)

Virgin soil (pH to be tested)

Well drained loam - sandy loam

Ph range 5.8 to 7.5

Topography 0 to 2% Slight slope is preferred

TheproposedEastSumbawasiteissuitableforyearroundcashcropping

Shallots,chiliandsweetcornarecommonsmallholdercropsinSumbawa(Bima,DompuandSumbawaBesar).Smallholderproduc)vityislimitedbyinadequateaccesstowaterforirriga)onanddistancetothemainmarketsinJava(highcostandhighlossesofperishableproduce).Foundershavedevelopedsolu)onsthataddresscoldsupplychainandlogis)cchallenges.

Site suitability criteria Proposed Property

Comment

Climate:

Sub-tropical dry climate. ✔ Climate is not considered extreme for the proposed cropping program. Adverse (high rainfall) conditions are not frequent

Soils:

Virgin, deep sandy loam soils ✔

Chili, shallots and sweet corn require well-drained soil – ideally sandy loam.

Irrigation potential:

The property is located above a large aquifer – reported ground-water potential 8-15 liters per sec (borehole potential 800m3/day)

✔

Approximate 3,500m3/Ha water is required to produce one crop. Maximum requirement for 120 Ha estimated at 4,700m3/day from boreholes during dry season (peak demand).

Community conflict:

Low risk of community conflict or illegal occupation (limited access to water)

✔

Good potential to support surrounding community farmers through out-grower programs

Existing access & infrastructure:

Nearest town is 50km away, nearest Port is 30km away and both are connected by new asphalt road. Reliable and good mobile telecommunication services are available but no access to state electricity supply.

✔

Basic services and all-weather access is available On site power generation options include solar, gas (LPG) and diesel power

Cold supply chain logistics:

No available cold supply chain services

✘ Propose to establish our own cold supply chain (farm to warehouse)

Market access:

Long distance by road to the main market (Java). Sea freight options are limited. Nearest Port is 30km away

✘

Sea freight is potentially cheaper and quicker than road transport. Propose long term charter of a suitable vessel - weekly service to / from Java Opportunity to develop a deep water jetty on site

Thepropertyhasunlimitedaccesstogroundwater(produc)veaquifer)

Reference:SumbawaHydrogeologicalmap(2001)

Theproposedpropertyislocatedinanareadefinedas“ModerateProduc)veAquifer”(LightBlue)yielding5to10literspersecond”

(Poten)al=800m3/day)

Moderndripirriga)onsystemsop)mizewateru)liza)onandallowsfer)lizerapplica)onviairriga)onatany)me

•  Peakwaterrequirementfor120Haises)matedat8,400m3perday,basedonevapora)onof7mm/day,norainfalland100%ofplantwaterrequirement;

•  10-12boreholesmayberequired;•  Theproposedirriga)onsystemisdesignedin30HaBlocks(4);•  Eachblockwillhaveitsownwaterstorageandwatersupply

infrastructure(boreholes,boreholepumps,irriga)onpumps,fer)ga)oninjectorsandbackupgenerator);and

•  Solarpoweredpumpswillbeusedtominimizepumpingcosts.

ProjectTamboraintendstodesignrainwaterharvesHngsystemthatincludesconstrucHonofalargestoragedamto

reducetherequirementforgroundwaterextracHon

PROJECTTAMBORASTARTUPDEVELOPMENTSCHEDULE

Year1Developmentac)vi)esinclude:

•  LandAcquisi)on•  Sitedevelopmentandplanning•  Temporaryaccommoda)on&offices•  Boreholesandtes)ng•  Irriga)onstoragedamconstruc)on•  Installa)onofdripirriga)onsystems•  Buildings&infrastructureconstruc)on•  Equipmentpurchases•  Containerjegyconstruc)on•  Packhouseandcoldstorageconstruc)on•  Securityinfrastructure•  JavaWarehousesetup•  Phasedvegetableproduc)on

Thestartupdevelopmentscheduleisaimedatachievingfullproduc)on(2.5Haperweek)commencingQ4

•  1stcommercialcropmayexcludesweetcorn(notviabletoshipsmallquan)tytoJava);•  1stcroprevenueisexpectedcommencingQ3;•  Fullproduc)on(2.5Ha/week)issettocommenceinQ4/retailinginQ1ofyear2;•  Flexibleproduc)onscale–adjustedtosuitsitedevelopmentprogressandmarketdemand;•  Ini)alaccommoda)onandofficeinfrastructurewillbecontainerized(quickandeasy);and•  ThecontainerjegyshouldbereadyforusebyQ4.

Year%

Quarter Q1 Q2 Q3 Q4

Land%Acquisition

Construction

Irrigation

Equipment%purchases

Port%Construction

Site%preparation

1st%Crop%(1%Ha/week)%E%%Chili%&%Shallots 1st%Crop

2nd%Crop%(2%Ha/week)%E%Sweet%corn,%Chili%&%Shallots 2nd%Crop

Full%Production%(2.5%Ha/week)%E%%Sweet%corn,%Chili%&%Shallots Full%Prod.

Plant%Trial%Crops%E%Garlic%&%Soybean 1st 2nd 3rdRetail%1st%Crop%E%%Chili%&%Shallots 1st%Crop

Retail%2nd%Crop%Sweet%corn,%Chili%&%Shallots 2nd%Crop

Retail%2.5%Ha/WeekE%%Sweet%corn,%Chili%&%Shallots

Retail%Trial%Crops%E%Garlic%&%Soybean 1st 2nd

Year%1

Acquisition/DD HGU/ExtensionAccomodation///Stores///Offices///Roads///Pack/house///Security

Boreholes///Dams///Drip/Irr.

The2yeardevelopmentscheduleisaimedatcomple)ngconstruc)onandbuildingalargestoragedamforirriga)on

•  ArerYear1thefarmingopera)onneedstohaveiden)fiedfull)mestaffandfieldworkerswhowillrequireonsiteaccommoda)onandfacili)esthatincludemedicalandeduca)onalfacili)esfortheirimmediatefamilies;

•  Alargewaterstoragedamwillbeconstructedonthepropertytocapturerainwaterrunoff(reducedependenceonboreholes);and

•  Byyear2,thefarmisreadytoincreaseproduc)onscaletosuitlocal,regionalandexportmarketdemandandestablishlivestockenterprise(beeffeedlot&abagoir)tou)lizecropresidueandprocessedwaste.

Year%Quarter Q1 Q2 Q3 Q4

Land%AcquisitionConstruction

IrrigationEquipment%purchases

Port%ConstructionSite%preparation

Full%Production%(2.5%Ha/week)%I%%Sweet%corn,%Chili%&%Shallots Y2%I%Q1 Y2%I%Q2 Y2%I%Q3 Y2%I%Q4Plant%Trial%Crops%I%Garlic%&%Soybean Y2#$#Q1 Y2#$#Q2 Y2#$#Q3 Y2#$#Q4

Retail%2.5%Ha/WeekI%%Sweet%corn,%Chili%&%Shallots Y1%I%Q4 Y2%I%Q1 Y2%I%Q2 Y2%I%Q3Retail%Trial%Crops%I%Garlic%&%Soybean Y1#$#3rd#crop Y2#$#Q1 Y2#$#Q2 Y2#$#Q3

Year%2

Rainwater%Harvesting%DamStaff%&%Labour%permament%accommodation

Our“Basecase”assumesyear-roundproduc)onofsweetcorn,chiliandshallotsofequalarea

Sweet%Corn Chili Shallots Soybean GarlicWeekly&Planting 2.5&Ha 2.5&Ha 2.5&Ha

Weekly&Harvesting 2.5&Ha 2.5&Ha 2.5&HaBudget&Yield 18&Mt/Ha 14&Mt/Ha 15&Mt/Ha

Potential&Yield 22>25&Mt/Ha 20&Mt/Ha 25>30&Mt/HaBudget&Weekly&Production&(Mt) 45 35 37.5

Potential&Weekly&Production&(Mt) 55 50 62.5Budget&Weekly&Shipments 45 35 37.5

Potential&Weekly&Shipments 55 50 62.5Budget&Weekly&Retail 45 35 37.5

Potential&Weekly&Retail 55 50 62.5

Main%Crops Trial%Crops

0.5&Ha0.5&Ha

Production%Plan

Land%Use%/%Crop%Options Sweet%Corn Chilli ShallotsVariety Golden%Sweet Birds%Eye%&%Large SAREN%TSS

Growing%Days% 80#$#85#Days 110$120#Days 70#$#90#DaysBudgeted%Yield%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%Potential%Yield

18Mt/Ha#######################20$25Mt/Ha

14Mt/Ha#####################18$22Mt/Ha

15Mt/Ha#################20$30Mt/Ha

Stocking 75,000#/#Ha 30,000/Ha 160,000/HaWater%Requirement 3,500#m3/Ha 3,500#m3/Ha 3,500#m3/Ha

Full%Production%@%2.5%Ha/Week

COLDSUPPLYCHAINANDLOGISTICS

Coldsupplychainmustincludepost-harvestpre-coolingandop)mumcoldstoragefromfarmtoretail

Logis)cs TemperatureControl(Refrigera)on)

ColdChainLogis)cs+ =

FarmProducHon

Transport WarehouseColdStorage Wholesalers

Pre-CoolingPackhouseColdStorage

• Farm• Packhouse• Pre-Cooling• Grading• Packing

ProducHon

• ContainerTrucks• ReeferContainers• ColdStorage

RoadTransporttoLocalPort • Loading

• Shipping• Off-Loading

SeaFreighttoJavaPort

• TransfertoColdrooms• DeliverytoWarehouse• RoadTransport

RoadTransporttoJavaWarehouse • Produceretailed

toWholesalersandTraderscollectedfromtheWarehouse

JavaColdStorage&Retail

FreshProduce Op)mumTemp MaximumShelfLifeSweetCorn 0–2°C 6–8DaysChili 7–10°C 14–21DaysShallots 0–2°C +6months


Coldsupplychainrequirementsincludepost-harvestpre-cooling,packhousecoldstorage,reefercoldstorageandwarehousecoldstorage

Hydro-chiller ColdRooms

ReeferContainers SwapBodyReeferContainer

SHIPPING

Example:140TEUVessel(20Reeferpoints)

Example Vessel:

SHIFlag: Faeroe Islands Built: Orskov Staalskibsverft AS, Denmark 1989. Class: Bureau Veritas 1A1 Ice B, E0, KMC. Deadweight: 3,223 Mt Gross tonnage: 2,469 Mt Loa: 87,05 m Beam: 14,50 m. Draught: 6.1 m Container capacity: 140 TEU capacity 20 reefer plugs

Projectrequireslongterm)mecharterofasmallreefervesselthatisgearedwithside-thrustcapability

•  Cargo cranes: 2 x 15Mt Maritime hydraulic cranes 1 Maritime hydraulic crane of 50Mt •  Hatch covers: 2 hatches type Kvaerner folding type each 20.70 x 10m / 4 x 2.50m •  Flush steel pontoons on deck 2 and 3 Box hold. •  Frozen cargo capacity: 2200 tons of frozen fish (can be used for other frozen product). •  Refrigerator equipment: Sabroe refrigerating plant -27 C Tropic, 80m3/Hr air circulation. •  Main engine: MAK type 8MU 453 C, 2400 kw/3260 bhp at 560 rpm •  Service speed: 12.5 knots •  Fuel oil consumption: 6,6 tons of MDO per 24 hours. •  Shaft generator: Stamford MHC 434 E, 255 kva. •  Require tub boat support when docking (no side –thrust capability)

Shippingcosts(longterm)mecharter)es)matedatUS$25,271pertrip

•  Timecharterquotereceivedfromalocalshippingagent;•  Interna)onal)mecharterratesfor<200TEUVessel=US$20/TEU/Day;•  OurBaseCaseTimeChartercost(shipping12x20rReeferContainers)=US$55/TEU/day;•  Significantcostsavingopportunitybyincreasingthenumberofcontainerspershipment.

Shipping'Cost'Criteria Rp'CostsRe0flagging'Cost'(Rp) 420,000,000''''''''''''

Monthly'Time'Charter'Costs'(Rp) 850,000,000''''''''''''Bunker'Cost '''at'1,500L'per'Day'@'Rp'12,000/L'Port'Charges '''at'Rp'5'million'/'Loading'or'Discharge

Time'Charter'Rp'Costs/Trip 221,250,000'''''''''''' (4#Trips/Month)'Bunker'Cost'(Rp)' 72,000,000'''''''''''''' 4#Shipping#Days/TripPort'Charges'(Rp) 10,000,000'''''''''''''' Per#Trip

Total'Costs'per'Trip'(Rp) 303,250,000'''''''''''' USD#25,271Estimated'Rp'Cost'per'Kg 3,032.50'''''''''''''''''' (based#on#10,000kg#Container)

Monthly'Costs'(Rp) 1,213,000,000''''''''

Time%Charter%Cost%US$%per%TEU%per%day 59.03%%%% 10#Containers#per#trip#Time%Charter%Cost%US$%per%TEU%per%day 19.68%%%% 30#Containers#per#tripTime%Charter%Cost%US$%per%TEU%per%day 11.81%%%% 50#Containers#per#trip

Time%Charter%Cost%US$%per%TEU%per%day 5.90%%%%%% 100#Containers#per#trip

OurBaseCaseassumesno3rdpartycargoisincludedinshipmentstoandfromJava

ProjectTambora-BaseCasefreightcosts

@StartupPhase1: Rp7,500/Kg(4Reefercontainers/week)@StartupPhaseII: Rp3,192/Kg(10Reefercontainers/week)FullProduc)on(1year):Rp2,554/Kg(12reefercontainers/week)

Phase&1 Phase&II Full&OperationTime%Charter,%Bunker,%Port%Costs%(USD/trip) $25,271 $25,271 $25,271

ATI%Containers%per%Week 4 10 12

3rd%Patty%Containers%per%week

Trip%TurnHAround%(ATIHSurabyaHATI)

ATI%Weekly%Fresh%Produce%(Kgs) 40,000%%%%%%%%% 95,000%%%%%%%% 118,750%%%%%%%%%%

ATI%Produce%Budget%Cost%per%Kg Rp7,581 Rp3,192 Rp2,554Business%Plan%Budget%(Rp/Kg) Rp7,581 Rp3,192 Rp2,554

Additional%Container%Space%Available%to%SBY 94 90 85

BASE&CASE:&East&Sumbawa&to&Surabaya&(Fresh&Produce&only)&One&Way

5H6%Days

Inclusionof3rdPartycargowouldreducetransportcoststo<Rp500/kg

•  CommodityroadtransportfromDomputoEastJavacostRp850–Rp1,200/kg(1way);•  3rdPartydry-bulkcargocommodi)esincludes100,000Mtanimalfeedcorn(May–Sept);•  Othercommodi)es(10,000–20,000Mt/Ann)includecoffee,cashewandrice;and•  ReturncargofromEastJavaincludecement,sugar,fer)lizer,seedandcommongoods.

ProjectTamboraaimstopartnerwithalocalshippingagenttoachievefreightcosts<Rp500/kg(50%CapacitytoJavaand20%capacityfromJava).

3rdpartycargocanbeloaded/dischargedatKempo&Calabai(publicports).

ATI$to$Surabaya 30%$Capacity 50%$Capacity 80%$CapacitySurabaya$to$ATI 20%$Capacity 20%$Capacity 20%$Capacity

Time$Charter,$Bunker,$Port$Costs$(USD/trip) $25,271 $25,271 $25,271ATI$Containers$(TEU)$per$Week 12 12 123rd$Patty$Containers$per$week 38 58 88

Trip$TurnIAround$(ATIISurabyaIATI)Weekly$Fresh$Produce$(Kgs) 118,750$$$$$$$$$$ 118,750$$$$$$$$ 118,750$$$$$$$$$$$$$

3rd$Party$Dry$Cargo 380,000$$$$$$$$$$ 580,000$$$$$$$$ 880,000$$$$$$$$$$$$$Total$Payload$per$Shipment$(2Iway) 498,750$$$$$$$$$$ 698,750$$$$$$$$ 998,750$$$$$$$$$$$$$

ATI$Produce$Cost$per$Kg Rp608 Rp434 Rp304Additional$Container$Space$Available$to$SBY 70 50 20

5I6$Days

East$Sumbawa$to$Surabaya$(Farm$&$3rd$Party$Cargo)$B$Two$Way

Ini)allyfreshproducewillbeshippedviaKempoporttoacoldstoragewarehouseinJava

Tominimizetransportcostsandminimizesupplychainlosses,ProjectTamboraintendstodevelopacoldsupplychainfromfarmtotheJavawarehouse(pointofretail).

Loadingportop)onswereevaluated:•  Thenearestac)vecontainerportislocatedatBadasinSumbawaBesar(55Nmfrom

Kempo).Thisop)onwouldincuraddi)onaltransportcostsandlonger)metomarket;and•  Thenearestseaport(inac)ve)islocatedatKempo(theimmediatepreferredop)on)

ProjectTamboraplanstodevelopacoldsupplychainthatincludeson-siteportinfrastructure

Tocontroltransportcostsandtoensureregular/scheduledweeklyshipmentstoJava,thecoldsupplychainwillbedevelopedfrompackhousetotheJavawarehouse

•  Bathometricchartillustratesadeepwatercoastlinesuitablefordeep-waterport;•  On-siteportinfrastructureeliminatestherelianceonpublicroadandpublicport

infrastructureandroadtransportcostswillbereduced;and•  Thedeep-waterjegymustbecapableofloadingandoff-loadingvesselsrequiringberthing

depthof7-10m

Toachieve6dayturn-around,GresikPort(Surabaya)wasiden)fiedasthepreferreddischargeport

•  Gresik–Smalllocalportisconsideredmostsuitablefordischargingcontainercargofromgearedvessels(lesspossibilityofportconges)on);

•  Itislocatedincloseproximity(10km)toJIIPEIndustrialComplex(ATIColdStorageWarehouseop)on);

•  ExportshipmentscanberedirectedviaTJPerak(10kmaway);and•  Airfreightexportsarepossible(SurabayaInterna)onalAirport)(30kmfromJIIPE).

GOODAGRICULTUREPRACTICES(GAPs)

GAPrequirementstoachievebudgetedproduc)onandexportqualityinclude:

•  Scheduledplan)ng,irriga)on,fer)liza)on,IPM,weedcontrolandharves)ng;•  Expertmanagementisrequired;•  Adequatelaborsupplyforfieldac)vi)es(150-160perday);and•  Stand–alonelogis)csandcoldsupplychaintoachieveweeklyshipmentstoJava

PRODUCTIONCOSTS&YIELDS

Mechanizedharves)ngprovidesopportunitytoreducelaborrequirementsandharves)ngcosts

Mechanizedharves)ngprac)ceswouldreducelaborrequirementsandharves)ngcosts

ProcessingIndustry

FreshMarket

FINANCIAL&INVESTMENTANALYSIS

Managementteamwouldincludeexpertsinvegetableproduc)on,logis)csandmarke)ng

CEO$P.Botha$

Finance$&$Admin$$General$Manager$

Accountant$ Human$Resources$$Manager$

Marke?ng$$General$Manager$

(Expat)$

Opera?ons$$General$Manager$

(Expat)$

Senior$Agronomist$$(Expat)$

Division$Managers$Sweet$corn$Manager$

Chili$Manager$Shallot$Manager$Irriga?on$Manager$

Laboratory$Soil$&$Nutrients$

Pack$House$Manager$

Maintenance$Manager$

Logis?cs$$General$Manager$

Morethan50%ofrequiredCAPEX(US$2.9)isrequiredforlandacquisi)onandinfrastructuredevelopment

Note:CurrentowneriswillingtoconsideroutrightsaleoranEquityposi)onintheCompany

INVESTMENTANALYSIS

•  10YearArerTaxCashflow•  Tax@28%•  DiscountRate@10%•  Overheads=22%oftotalcosts

Budgetedinvestmentreturns(IRR40%)arebasedonconserva)vemarketpricesandabnormallyhighshippingcosts


YearUSD 0 1 2 3 4 5 6 7 8 9 10

P&L Yr1 Yr2 Yr3 Yr4 Yr5Revenue 1,780,333 8,352,785 8,603,369 8,861,470 9,127,314 9,401,133 9,683,167 9,973,662 10,272,872 10,581,058Crop%input%and%marketing%costs (2,328,469) (4,572,121) (4,705,289) (4,838,458) (4,971,627) (5,104,795) (5,237,964) (5,371,132) (5,504,301) (5,637,469)SG&A (852,247) (1,241,595) (1,276,239) (1,311,922) (1,348,676) (1,386,532) (1,425,525) (1,465,687) (1,507,053) (1,549,661)EBITDA (1,400,383) 2,539,070 2,621,840 2,711,090 2,807,011 2,909,806 3,019,679 3,136,843 3,261,518 3,393,928Depreciation (229,947) (229,947) (241,065) (243,196) (245,327) (247,458) (105,777) (105,777) (105,777) (105,777)ProfitBbeforeBtax (1,630,330) 2,309,123 2,380,776 2,467,894 2,561,684 2,662,348 2,913,901 3,031,066 3,155,740 3,288,150Tax%@ 28% 456,492 (646,554) (666,617) (691,010) (717,272) (745,457) (815,892) (848,698) (883,607) (920,682)ProfitBafterBtax (1,173,837) 1,662,568 1,714,159 1,776,884 1,844,413 1,916,890 2,098,009 2,182,367 2,272,133 2,367,468

CashBflowEBITDA (1,400,383) 2,539,070 2,621,840 2,711,090 2,807,011 2,909,806 3,019,679 3,136,843 3,261,518 3,393,928Income%tax 456,492 (646,554) (666,617) (691,010) (717,272) (745,457) (815,892) (848,698) (883,607) (920,682)Working%capital 0Capex:Purchase%of%land (834,242)

Other%capex (1,689,936) (235,642) (49,634) (49,973) (50,322) (50,682) (51,053) (51,434) (51,828) (52,233) (52,233)

CashflowBbeforeBfinancing (2,524,178) (1,179,532) 1,842,881 1,905,250 1,969,757 2,039,057 2,113,295 2,152,352 2,236,317 2,325,678 2,421,013

EquityEquity%financing 3,600,000CashflowBafterBfinancing 1,075,822 M1,179,532 1,842,881 1,905,250 1,969,757 2,039,057 2,113,295 2,152,352 2,236,317 2,325,678 2,421,013

Opening%cash%balance 1,075,822 1,075,822 T103,710 1,739,171 3,644,421 5,614,178 7,653,235 9,766,530 11,918,882 14,155,200 16,480,878Retained%cash 1,075,822 T1,179,532 1,842,881 1,905,250 1,969,757 2,039,057 2,113,295 2,152,352 2,236,317 2,325,678 2,421,013Closing%cash%balance 1,075,822 M103,710 1,739,171 3,644,421 5,614,178 7,653,235 9,766,530 11,918,882 14,155,200 16,480,878 18,901,890

IRREquity%investment (3,600,000) 0 0 0 0 0 0 0 0 0 0Free%cashflow%after%financing 1,075,822 (1,179,532) 1,842,881 1,905,250 1,969,757 2,039,057 2,113,295 2,152,352 2,236,317 2,325,678 2,421,013CashflowBavailableBtoBs'holders (2,524,178) (1,179,532) 1,842,881 1,905,250 1,969,757 2,039,057 2,113,295 2,152,352 2,236,317 2,325,678 2,421,013EquityBIRR 40%NPV $7,229,845

Three“upsideopportuni)es”havebeeniden)fiedthatwouldpoten)allyincreaseIRRinexcessof150%

Threepriorityupsideopportuni)esexcludedfromthebudgeted“BaseCase”modelinclude:

1.  Reduceshippingcostsbyincluding3rdpartycargowithATIcargo(+30%IRR);2.  Premiumprices(25%)areachievableforexportqualityproduce(+26%IRR);3.  Increasedfarmproduc)onfrom120Hato240HainYear3(+50%IRR).

Increasefarm

producHonto240Ha

Target25%pricepremiumforexportqualityproduce

Include3rdPartydrybulkcontainerizedcargowithfresh

produce

BaseCase:120Ha+HighShippingCost+belowaveragepriceforexportqualitysweetcorn,chiliandshallotsIRR40%

IRR74%

IRR100%

IRR150%

Years1-2

Year3

Byincluding3rdpartydrybulkcargo,IRRcanbeincreasedby30%(basedonconserva)vemarketprices)from120Ha


YearUSD 0 1 2 3 4 5 6 7 8 9 10

P&L

Revenue 1,780,333 8,352,785 8,603,369 8,861,470 9,127,314 9,401,133 9,683,167 9,973,662 10,272,872 10,581,058

Crop%input%and%marketing%costs (1,166,483) (2,479,799) (2,479,799) (2,479,799) (2,479,799) (2,479,799) (2,479,799) (2,479,799) (2,479,799) (2,479,799)SG&A (852,247) (1,241,595) (1,276,239) (1,311,922) (1,348,676) (1,386,532) (1,425,525) (1,465,687) (1,507,053) (1,549,661)EBITDA (238,397) 4,631,391 4,847,331 5,069,749 5,298,839 5,534,802 5,777,843 6,028,177 6,286,020 6,551,598

Depreciation (229,947) (229,947) (241,065) (243,196) (245,327) (247,458) (105,777) (105,777) (105,777) (105,777)ProfitAbeforeAtax (468,344) 4,401,445 4,606,266 4,826,553 5,053,512 5,287,344 5,672,066 5,922,399 6,180,242 6,445,820

Tax%@ 28% 131,136 (1,232,404) (1,289,755) (1,351,435) (1,414,983) (1,480,456) (1,588,178) (1,658,272) (1,730,468) (1,804,830)ProfitAafterAtax (337,207) 3,169,040 3,316,512 3,475,118 3,638,529 3,806,887 4,083,888 4,264,127 4,449,774 4,640,991

CashAflow

EBITDA (238,397) 4,631,391 4,847,331 5,069,749 5,298,839 5,534,802 5,777,843 6,028,177 6,286,020 6,551,598Income%tax 131,136 (1,232,404) (1,289,755) (1,351,435) (1,414,983) (1,480,456) (1,588,178) (1,658,272) (1,730,468) (1,804,830)Working%capital 0Capex:

Purchase%of%land (834,242)Other%capex (1,689,936) (235,642) (49,634) (49,973) (50,322) (50,682) (51,053) (51,434) (51,828) (52,233) (52,233)

CashflowAbeforeAfinancing (2,524,178) (342,903) 3,349,353 3,507,603 3,667,991 3,833,173 4,003,293 4,138,231 4,318,077 4,503,319 4,694,536

EquityEquity%financing 3,600,000

CashflowAafterAequityAfinancing 1,075,822 (342,903) 3,349,353 3,507,603 3,667,991 3,833,173 4,003,293 4,138,231 4,318,077 4,503,319 4,694,536

DebtDrawdown 0 0 0 0 0 0 0 0 0 0 0Repayment 0 0 0 0 0 0 0 0 0 0

CashflowAafterAfinancing 1,075,822 N342,903 3,349,353 3,507,603 3,667,991 3,833,173 4,003,293 4,138,231 4,318,077 4,503,319 4,694,536

Opening%cash%balance 1,075,822 1,075,822 732,919 4,082,272 7,589,876 11,257,867 15,091,040 19,094,333 23,232,563 27,550,640 32,053,960Retained%cash 1,075,822 V342,903 3,349,353 3,507,603 3,667,991 3,833,173 4,003,293 4,138,231 4,318,077 4,503,319 4,694,536Closing%cash%balance 1,075,822 732,919 4,082,272 7,589,876 11,257,867 15,091,040 19,094,333 23,232,563 27,550,640 32,053,960 36,748,495

IRR

Equity%investment (3,600,000) 0 0 0 0 0 0 0 0 0 0Free%cashflow%after%financing 1,075,822 (342,903) 3,349,353 3,507,603 3,667,991 3,833,173 4,003,293 4,138,231 4,318,077 4,503,319 4,694,536CashflowAavailableAtoAs'holders (2,524,178) (342,903) 3,349,353 3,507,603 3,667,991 3,833,173 4,003,293 4,138,231 4,318,077 4,503,319 4,694,536

EquityAIRR 74%

NPV $17,570,383

Achieving25%premiumonmarketpriceforexportqualityproduceshippedwith3rdpartycargowouldincreaseIRRby26%


YearUSD 0 1 2 3 4 5 6 7 8 9 10

P&L

Revenue 2,225,417 10,440,981 10,754,211 11,076,837 11,409,142 11,751,416 12,103,959 12,467,078 12,841,090 13,226,323

Crop%input%and%marketing%costs (1,166,483) (2,479,799) (2,479,799) (2,479,799) (2,479,799) (2,479,799) (2,479,799) (2,479,799) (2,479,799) (2,479,799)SG&A (852,247) (1,241,595) (1,276,239) (1,311,922) (1,348,676) (1,386,532) (1,425,525) (1,465,687) (1,507,053) (1,549,661)EBITDA 206,686 6,719,588 6,998,173 7,285,116 7,580,667 7,885,085 8,198,635 8,521,592 8,854,238 9,196,862

Depreciation (229,947) (229,947) (241,065) (243,196) (245,327) (247,458) (105,777) (105,777) (105,777) (105,777)Profit?before?tax (23,260) 6,489,641 6,757,108 7,041,920 7,335,340 7,637,627 8,092,858 8,415,815 8,748,460 9,091,085

Tax%@ 28% 6,513 (1,817,099) (1,891,990) (1,971,738) (2,053,895) (2,138,536) (2,266,000) (2,356,428) (2,449,569) (2,545,504)Profit?after?tax (16,747) 4,672,541 4,865,118 5,070,183 5,281,445 5,499,091 5,826,858 6,059,387 6,298,891 6,545,581

Cash?flow

EBITDA 206,686 6,719,588 6,998,173 7,285,116 7,580,667 7,885,085 8,198,635 8,521,592 8,854,238 9,196,862Income%tax 6,513 (1,817,099) (1,891,990) (1,971,738) (2,053,895) (2,138,536) (2,266,000) (2,356,428) (2,449,569) (2,545,504)Working%capital 0Capex:

Purchase%of%land (834,242)Other%capex (1,689,936) (235,642) (49,634) (49,973) (50,322) (50,682) (51,053) (51,434) (51,828) (52,233) (52,233)

Cashflow?before?financing (2,524,178) (22,443) 4,852,854 5,056,210 5,263,056 5,476,090 5,695,497 5,881,201 6,113,336 6,352,436 6,599,126


Cashflow?after?equity?financing 1,075,822 (22,443) 4,852,854 5,056,210 5,263,056 5,476,090 5,695,497 5,881,201 6,113,336 6,352,436 6,599,126


Cashflow?after?financing 1,075,822 N22,443 4,852,854 5,056,210 5,263,056 5,476,090 5,695,497 5,881,201 6,113,336 6,352,436 6,599,126

Opening%cash%balance 1,075,822 1,075,822 1,053,379 5,906,234 10,962,443 16,225,499 21,701,589 27,397,085 33,278,286 39,391,622 45,744,058Retained%cash 1,075,822 V22,443 4,852,854 5,056,210 5,263,056 5,476,090 5,695,497 5,881,201 6,113,336 6,352,436 6,599,126Closing%cash%balance 1,075,822 1,053,379 5,906,234 10,962,443 16,225,499 21,701,589 27,397,085 33,278,286 39,391,622 45,744,058 52,343,184

IRR

Equity%investment (3,600,000) 0 0 0 0 0 0 0 0 0 0Free%cashflow%after%financing 1,075,822 (22,443) 4,852,854 5,056,210 5,263,056 5,476,090 5,695,497 5,881,201 6,113,336 6,352,436 6,599,126Cashflow?available?to?s'holders (2,524,178) (22,443) 4,852,854 5,056,210 5,263,056 5,476,090 5,695,497 5,881,201 6,113,336 6,352,436 6,599,126

Equity?IRR 100%

NPV $26,582,970

Increasingfarmproduc)onfrom120Hato240HainYear3togetherwithpremiummarketpricesandlowershippingcosts,providesopportunitytoexceedIRR150%


YearUSD 0 1 2 3 4 5 6 7 8 9 10

P&LRevenue 4,450,833 10,440,981 21,508,421 22,153,674 22,818,284 23,502,833 24,207,918 24,934,155 25,682,180 26,452,645Crop%input%and%marketing%costs (1,166,483) (2,479,799) (4,959,598) (4,959,598) (4,959,598) (4,959,598) (4,959,598) (4,959,598) (4,959,598) (4,959,598)SG&A (852,247) (1,241,595) (1,659,110) (1,705,499) (1,753,279) (1,802,492) (1,853,182) (1,905,393) (1,959,169) (2,014,560)EBITDA 2,432,103 6,719,588 14,889,713 15,488,577 16,105,408 16,740,743 17,395,138 18,069,165 18,763,413 19,478,488Depreciation (229,947) (229,947) (241,065) (243,196) (245,327) (247,458) (105,777) (105,777) (105,777) (105,777)Profit?before?tax 2,202,156 6,489,641 14,648,648 15,245,382 15,860,081 16,493,285 17,289,360 17,963,387 18,657,635 19,372,710Tax%@ 28% (616,604) (1,817,099) (4,101,622) (4,268,707) (4,440,823) (4,618,120) (4,841,021) (5,029,748) (5,224,138) (5,424,359)Profit?after?tax 1,585,553 4,672,541 10,547,027 10,976,675 11,419,258 11,875,165 12,448,339 12,933,639 13,433,497 13,948,351

Cash?flowEBITDA 2,432,103 6,719,588 14,889,713 15,488,577 16,105,408 16,740,743 17,395,138 18,069,165 18,763,413 19,478,488Income%tax (616,604) (1,817,099) (4,101,622) (4,268,707) (4,440,823) (4,618,120) (4,841,021) (5,029,748) (5,224,138) (5,424,359)Working%capital 0Capex:

Purchase%of%land (834,242)Other%capex (1,689,936) (235,642) (49,634) 310,027 (50,322) (50,682) (51,053) (51,434) (51,828) (52,233) (52,233)

Cashflow?before?financing (2,524,178) 1,579,857 4,852,854 11,098,118 11,169,548 11,613,903 12,071,570 12,502,682 12,987,589 13,487,042 14,001,896


Cashflow?after?equity?financing 1,075,822 1,579,857 4,852,854 11,098,118 11,169,548 11,613,903 12,071,570 12,502,682 12,987,589 13,487,042 14,001,896


Cashflow?after?financing 1,075,822 1,579,857 4,852,854 11,098,118 11,169,548 11,613,903 12,071,570 12,502,682 12,987,589 13,487,042 14,001,896

Opening%cash%balance 1,075,822 1,075,822 2,655,679 7,508,534 18,606,652 29,776,200 41,390,103 53,461,673 65,964,355 78,951,944 92,438,986Retained%cash 1,075,822 1,579,857 4,852,854 11,098,118 11,169,548 11,613,903 12,071,570 12,502,682 12,987,589 13,487,042 14,001,896Closing%cash%balance 1,075,822 2,655,679 7,508,534 18,606,652 29,776,200 41,390,103 53,461,673 65,964,355 78,951,944 92,438,986 106,440,882

IRREquity%investment (3,600,000) 0 0 0 0 0 0 0 0 0 0Free%cashflow%after%financing 1,075,822 1,579,857 4,852,854 11,098,118 11,169,548 11,613,903 12,071,570 12,502,682 12,987,589 13,487,042 14,001,896Cashflow?available?to?s'holders (2,524,178) 1,579,857 4,852,854 11,098,118 11,169,548 11,613,903 12,071,570 12,502,682 12,987,589 13,487,042 14,001,896Equity?IRR 153%

NPV $56,508,037

Severalotherupsideopportuni)eswouldsignificantlyincreasetheprojectedinvestmentreturns

LivestockEnterprise

IncreasedYields

IncreaseareaChili&

Shallot

OnFarmsales

ReduceferHlizercosts

ReduceharvesHng

costs

Increasetotal

producHon

AddSoybean&Garlic

Processedfoods Cropresidue&processed

wasteisu)lizedaslowcostanimalfeed

(BeeforPorkFeedlot)

Shallots&Chili

6-8monthsinayear

Non-exportqualityproduce

(noshippingcost)

Applycompostproducedonfarm

DevelopSmallholderOut-growers

Cannedsweetcorn&frozenedamameforexports

Mechanizedharves)ngSweetcorn&Shallots

Addi)onalcropsaregoodforDiversifica)on

PROJECTTAMBORA

Project tambora august 2016

Real Estate

Transcript of Project tambora august 2016