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PT Central Proteinaprima Tbk

Restructuring update presentation to bondholders

23 and 24 February 2012

This presentation has been prepared with respect to Blue Ocean Resources Pte. Ltd. (“BOR” or the “Company”) and PT Central Proteinaprima Tbk. (“CPP”)

and its existing subsidiaries (collectively, the “Group”). By accepting this presentation, the recipient hereof represents and warrants that it is entitled to receive

this presentation in accordance with the restrictions set forth below and agrees to be bound by the limitations contained herein. Any failure to comply with these

limitations may constitute a violation of the securities laws of a particular jurisdiction, including but not limited to the United States of America.

This presentation is for information purposes only and does not constitute or form part of an offer or solicitation of any offer to buy securities, nor should it or

any part of it form the basis of, or be relied in any connection with, any contract or commitment whatsoever. Any decision to purchase or subscribe for securities

issued by any member of the Group should be made solely on the basis of information contained in the offering memorandum to be published in respect of any

such offering of securities and no reliance should be placed on any information other than that contained in the offering memorandum. Any opinion, estimate or

projection herein constitutes a judgment as of the date of this report, and there can be no assurance that future results or events will be consistent with any

such opinion, estimate or projection. The information in this presentation is subject to change without notice, its accuracy is not guaranteed, it may be

incomplete or condensed and it may not contain all material information concerning the Group. Any decision to purchase any securities should be made only on

the basis of the offering memorandum to be made available at a subsequent date.

No representation or warranty, express or implied, is made as to and no reliance should be placed on the appropriateness, accuracy, completeness or fairness

of the information and opinions, expectations, projections and valuations contained in this presentation. Any liability or any negligent misstatement in respect of

the contents of, or any omission from, this presentation is hereby expressly excluded. The Group accepts no liability for any loss arising from the use of this

presentation or its contents or otherwise arising in connection therewith.

The valuations, projections and forecasts described in this presentation were based upon a number of estimates and assumptions and are inherently subject to

significant uncertainties and contingencies. Valuations, projections and forecasts are necessarily speculative in nature, and it can be expected that one or more

of the estimates on which the valuations, projections and forecasts were based will not materialize or will vary significantly from actual results, and such

variances will likely increase over time. In particular, the recipient acknowledges that the Group operates in an industry or industry that has been and is likely to

continue to be subject to fluctuations, cyclical movements and uncertainty.

The valuations, projections and forecasts contained in this presentation were not prepared with a view toward compliance with published guidelines or generally

accepted accounting principles. You should not regard the inclusion of the valuations, projections and forecasts described herein as a representation or

warranty by or on behalf of any member of the Group or any other person that these valuations, projections or forecasts or their underlying assumptions will be

achieved. For these reasons, you should only consider the valuations, projections and forecasts described in this presentation after carefully evaluating all of

the information in this presentation, including the assumptions underlying such valuations, projections and forecasts. However, there can be no assurance that

future results or events will be consistent with any such opinions, forecasts or estimates. Additionally, past performance is not indicative of future performance.

Certain statements in this presentation constitute “forward-looking statements.” All statements other than statements of historical fact included in this

presentation, including those regarding our financial position and results, business strategies, plans and objectives of management for future operations

(including development plans and dividends), are forward-looking statements. These forward-looking statements involve known and unknown risks,

Disclaimer

PT Central Proteinaprima Tbk | February 2012

Forward Looking Statements

uncertainties and other factors that may cause our actual results, performance or achievements, or industry results, to be materially different from any future

results, performance or achievements expressed or implied by the forward-looking statements. These forward-looking statements are based on numerous

assumptions regarding our present and future business strategies and the environment in which we will operate in the future.

Forward-looking statements involve inherent risks and uncertainties. The forward-looking statements included in this presentation reflect our current views

with respect to future events and are not a guarantee of future performance. A number of important factors could cause actual results or outcomes to differ

materially from those expressed in any forward-looking statement. These factors include, but are not limited to, the following:

general global, regional and local political, social and economic conditions;

regulatory developments and changes in the industry in which we operate;

the general economic condition of, and changes in, the economy in the Republic of Indonesia and the rest of the world;

changes in our need for capital and the availability of financing and capital to fund these needs;

whether we can successfully execute our business strategies and carry out our growth plans;

competition in the industry in which we operate;

changes in the costs of raw materials and other labor costs used in our business;

government regulations, including tax laws or licensing;

war or acts of international or domestic terrorism;

occurrences of catastrophic events, natural disasters and acts of God that affect our business or properties;

changes in our senior management team or loss of key employees;

changes in interest rates or inflation rates;

changes in the value of certain currencies that are used in our business, including the Indonesian rupiah and the U.S. dollar;

other factors beyond our control; and

any other matters not yet known to us.

The forward-looking statements contained in this presentation speak only as of the date of this presentation Although we believe that the expectations

reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. We do not

intend to update any of the forward-looking statements after the date of this presentation to conform those statements to actual results, subject to compliance

with all applicable laws.


Two objectives today


1. Get broad agreement on management’s financial projections, including capex plan

2. Get broad agreement on proposed restructuring terms

1. Recap: Overview of group business and recent events

2. Provide update on business performance

3. Provide independent view of third party advisors

4. Present financial projections and capex plan

5. Propose broad commercial terms of financial restructuring

6. Outline of next steps

7. Q&A

8. Bondholder discussion

Agenda


Overview of group business


• Sells aquaculture products to farmers directly or

through regional wholesalers in Indonesia.

• Engaged in technical partnership agreement with

major group of independent farmers located in Java.

• Provided technical consultation to farmers located in

other production centers.

• Current market leader in domestic sales in shrimp

and fish feed with more than 50% market share.

DESCRIPTION

• Vertically integrated aquaculture operations with farming

location in South Sumatra (WM) and Lampung (CPB),

strategically located near equator for year-round farming.

• The farming operations was developed under Nucleus-

Plasma scheme with the company (Nucleus) provides

materials and technical assistance to individual farmers

cultivating the shrimps.

• Rights and responsibilities of Nucleus and Farmers are

outlined in partnership agreement and approved by

government. The group provides corporate guarantees for

WM, AWS and CPB plasma loans.

• The operation and production is certified under numerous

International Food Safety standards around the world with

no-antibiotics practices and full traceability (BRC, ACC,

Global GAP, etc.).

MAIN PRODUCT LINE

• Shrimp Feed

• Fish Feed

• Pet Food

• Shrimp Fry

• Probiotics and Chemicals

• Shrimp Fry

• Fish Fry

• Shrimp Feed

• Probiotics

• Utilities (water and electricity)

• Shrimp Products

INTEGRATED AQUA BUSINESS

REVENUE

CONTRIBUTION

• 2009: 35%

• 2010: 39%

• 2011: 40% (*)

• 2009: 65% (export accounts for 40% from total sales)

• 2010: 61% (export accounts for 35% from total sales)

• 2011: 60% (export accounts for 34% from total sales) (*)

(*unaudited)

FREE MARKET BUSINESS

The group operations comprise of two business models.

Recap of events


Apr-09 •First IMNV outbreak detected at CPB site.

Aug-09

•Houlihan Lokey was appointed to act as the Financial Advisor to the

Group.

•Management provided an update to the bondholders in Hong Kong

regarding the financial results and deteriorating performance due to

the IMNV outbreak.

Nov-09

•Report by Dr. Matthew Briggs, an independent industry specialist,

selected and appointed by an adhoc bondholder committee, was

distributed to bondholders confirming IMNV outbreak.

Dec-09

•Decreasing pond yield as a result of the IMNV outbreak reduced

cash flow and led into the inability to make the December 2009

coupon payment.

Jan-10

•The Company obtained a 5-month standstill from majority of

bondholders.

Jun-10 •Standstill period expired.

Jan-11

•Large scale blockade at the AWS site.

Jan to

May-11

• Intensified discussions with AWS farmer representatives,

Management and government representatives.

Apr-11 •Termination of Houlihan Lokey’s services.

May-11

•The inability to reach consensus with plasma farmers led to the

shutdown of the entire AWS site operations.

May-11

•H&A Advisory was appointed to act as the Financial Advisor to the

Group.

Jul-11

•Restructuring protocol was agreed between the Group and a number

of bondholders.

Sep-11

•Dr. Matthew Briggs was appointed to update and conduct technical

review.

•FTI was appointed as independent financial advisor at the request of

a major bondholder to assess the integrity and reasonableness of

the Group’s financial forecast and report to the bondholder group.

Dec-11

•Reports from Dr. Matthew Briggs and FTI were completed and made

available to the bondholders.







7. Q&A


Agenda


Viral outbreak since April 2009 is largely under control

IMNV caused total production to fall from a peak of 8,000MT per month (including production from AWS) in 2008 to a low of 2,700MT in May 2009.

Initiatives implemented to contain the viral situation:

1. Reduction in stocking density

2. Polyculture of shrimp with tilapia fish as bio-filters

3. Upgrade in biosecurity measures

4. Improvement in water quality management

5. Renewed training of staff and plasma farmers

The above procedures have succeeded in improving production levels in the CPB and WM (excluding AWS) sites from 2,300MT in May 2009 to 5,100MT in

December 2011. Refer to Appendix A for further details.

AWS site – part of the Dipasena acquisition – has been shut down

May 2011, complete shutdown of operations at AWS site.

Shutdown of AWS’ operations resulted in lower production capacity and additional capex requirements.

The Group has assumed that AWS will not recommence operations during the forecast period.

The loss of the use of facilities (food processing, transport, logistics infrastructure) within the AWS site has resulted in additional capex requirements.

AWS contributed 5%, 13% and 27% of harvest volume in 2008, 2009 and 2010 respectively. The increase in contribution was driven by growth in its own

production and a severe decline in CPB output as a result of IMNV. Under normal a production scenario, AWS is estimated to contribute approximately

18% of the Group’s harvest volume.

Growing performance in free market shrimp and fish feed business

Free market shrimp feed grew from approximately 50,500MT in 2008 to 63,000MT in 2011.

Free market fish feed business grew from approximately 262,000MT in 2008 to 336,000MT in 2011.

Summary of recent business performance


Between 2009 and 2011, the Group suffered a significant financial deterioration, primarily due to the IMNV outbreak.

In addition, the Group is liable for the IDR312bln guarantees provided in support of the AWS plasma farmers’ loans.

Also, certain capital expenditures need to be incurred to replace certain production facilities previously provided within the AWS site.

Overall impact

Due to the IMNV outbreak and AWS closure, the Group’s financial position has suffered.


Source: Management







7. Q&A


Agenda


Dr. Briggs – Context and approach


• 28 years experience in studying and managing shrimp farms globally.

• Advisor to the United Nations Food and Agriculture Organization (UN FAO), BASF,

Bayer, Ridleys Aquaculture, etc.

• PhD in Shrimp Nutrition and Nursery Culture.

Introduction

• First contacted by Goldman Sachs and Clearwater in 2009 to provide independent

assessment of CP Prima.

• First report completed in November 2009.

• Was re-engaged in 2011 to provide an independent evaluation of CPP’s operations.

Context

• Site visits to farms 12-17 October 2009 and 15-18 September 2011.

• Combination of site inspections, management and staff interviews, detailed data

analysis, independent research, global and regional benchmarking and pond sample

analyses.

Approach

Report dated 4 October 2011 is a follow up report further to the report issued in October 2009.

Major difference from the previous report, is the Group’s shutdown of the AWS site which resulted in the loss of pond capacity and certain production facilities.

Since October 2009, production continued to decline due to worsening disease problems which reached their peak during early 2010.

Introduction of new management procedures (e.g. lowering of stocking density, polyculture of shrimp and fish) have enabled the Group to steadily increase

production.

Other disease issues are still occurring such as the white spot virus, a seasonal phenomenon, with outbreaks occurring in the cooler parts of the year from Q4

of one year to Q1 of the next. As yet, there is no indication of other viruses infecting the Group’s farms. This is a standard problem for the industry as a whole.

However, it is being managed properly by the Group.

Due to the new management procedures, substantial progress has been made in improving survival and growth rates and hence, productivity.

CPB site remains constrained by IMNV and will not be able to return to the production levels obtained prior to arrival of IMNV (i.e. stocking density needs to be

decreased to reduce the risk of IMNV).

Meanwhile, IMNV has a relatively minor effect on the production in WM site due to better water quality and smaller pond sizes.

Notwithstanding, caution and focus on good, sustainable management currently practiced offer the best and least risky way forward.

Dr. Briggs – Key findings

Dr. Briggs’ report provides an assessment of the progress made by the Group in combating IMNV as well as his opinion on the Group’s forecast assumptions.


FTI – Context and approach


•Global business advisory firm dedicated to helping organisations protect and enhance enterprise

value in an increasingly complex legal, regulatory and economic environment:

•Largest specialist restructuring group in the USA. The latest league tables from The Deal

demonstrates that FTI Consulting remains unmatched in restructuring and turnaround with over

50% more restructuring cases than the next most active firm.

•Singapore based Senior Managing Director has previously undertaken extensive due diligence of

AWS and WM on behalf of the Indonesian Government.

Introduction

•Engaged in September 2011 at the request of a major bondholder.

•The engagement entailed performing a financial review of CP Prima’s financial projections,

operational and capex budget and commentary on the reasonableness thereof. Ultimately, these

projections and budgets will be used to determine the sustainable debt servicing levels (coupon

and principal) over the restructuring period.

•Whilst engaged by the Company, FTI owes a duty of care to the BOR bondholders.

Context

•Company and site visits to farms in September to December 2011.

•Tasks performed included: (a) review of historical financial performance (i.e. understanding of

assets, liabilities, rights and obligations) (b) review of the initial operational and capital

expenditure budgets prepared by the Company.

•Our review required conducting independent research, review of the integrity of the financial

model/projections, interviews with management, consultation with Dr. Briggs.

Approach

Business model

Unique business model known as a Nucleus Plasma Partnership Project.

Symbiotic relationship between the Nucleus (i.e. the Group) and its Plasma (the farmers).

Model as a whole will fail where either of the “partners” does not achieve their own goals which is what occurred at AWS Site over a decade ago.

AWS

Relationship with the farmers seems to be beyond repair (a product of Dipasena management allowing the problems to fester for almost a decade).

In our view, but for some form of financial support from the Indonesian Government, which was not forthcoming, Management had no option other than

to take the position that they did.

IMNV

IMNV virus resulted in significant deterioration in pond yield and thus revenue which has prevented the Group from servicing the BOR bonds.

Management have undertaken numerous actions to mitigate the problem.

Unfortunately outbreaks of this type of virus have not been seen outside of Brazil and a “cure” is not yet available.

Whilst historical yields were significant they created an environment in which the risk of major disease outbreak was more likely (i.e. higher stocking

density leads to higher risk of infection).

Going forward, Management are adopting a more sustainable production philosophy.

FTI view – Key findings (I)


Forecasts

Forecasts appear reasonable and consistent with a more sustainable strategy i.e. Management does not intend to revert to the high stocking density

rates of the past.

Appears appropriate in the current circumstances given:

The business is cyclical given that it is impacted by weather conditions;

Commodity nature of the Group’s products – prices of which are subject to fluctuation;

Current state of operations – (a) pond yields well below pre-virus historical averages which are in line with a more sustainable strategy, (b) limited

investment in the business due to liquidity problems, and (c) loss of infrastructure associated with the operations at the AWS Site; and

IMNV remains a problem albeit Management have succeeded in implementing ways in which to improve pond yield.

Capex

The more capital expenditure incurred means less immediate cash is available for debt service during the respective capex periods.

However, there is a real risk to future cash flow if the capital expenditure is not undertaken.

Capital expenditure will not only allow future debt service but also enhance the ability to refinance the BOR bonds at maturity.

FTI view – Key findings (II)








7. Q&A


Agenda


Assumptions used in management projections

Key products Revenue COGS FTI comments References

(FTI report)

Frozen shrimp

% of forecasted

revenue:

38% - 41%

• DOC: 100 days

• CPB SD: 63-70 pcs/sqm

• WM SD: 85 pcs/sqm

• CPB SR: 66%-70%

• WM SR: 73%

• ASP: 2.5% increase p.a.

• Shrimp purchased from plasma

farmers, annual increase of 2.5%

p.a.

• Cost to cultivate and harvest in line

with Bloomberg forecasts and

inflation ranging from 3% to 8% p.a.

• Operational assumptions are

considered sustainable by Dr.

Briggs.

• Pages 85 to

96

Shrimp feed

% of forecasted

revenue:

19% - 21%

• Volume to plasma farmers

dependent on FCR (1.7-1.8

pcs/sqm) and SD (see above).

• Volume to free market to increase

5% p.a.

• Raw materials to increase in line

with global commodity price

forecast.

• Feed to plasma farmers are based

on projected requirements taking

into consideration historical FCR

levels.

• Feed sold to the free market is

based on Management’s view of

market demand and appears

reasonable in the circumstances.

• Pages 100

to 103

Fish feed

% of forecasted

revenue:

29% - 31%

• Volume to free market to increase

5% p.a.

• Raw materials to increase in line

with global commodity price

forecast.

• Feed to plasma farmers are based

on estimated FCR for fish which is

based on historical averages.

• Feed sold to the free market is

based on Management’s view of

market demand and appears

reasonable in the circumstances.

• Pages 104

to 105

Others – Shrimp fry, fish

fry, electricity, water

treatment, chemicals

% of forecasted

revenue:

9% - 13%

• Shrimp fry dependent on SD

• Fish fry to plasma farmers, serve

as biofilter; to free market, to be

bundled with fish feed

• Electricity, water treatment,

chemicals – dependent on plasma

farmers requirements/

consumption

• Shrimp fry – packaging and fixed

production costs

• Fish fry – broodstock

• Electricity, water treatment,

chemicals – oil, water and chemical

costs

• Based on historical averages and

projected requirements of the

plasma farmers.

• Pages 97 to

99, 106 to

114


Refer to Appendix B for further details.

Forecast income statement

The Group provided FTI with certain forecasts to enable it to conduct its financial review. A summary of these forecasts is set out in the following slides. These forecasts will also be used to enable FTI to produce an opinion on the fairness of the Scheme of Arrangement (which will be discussed later in the presentation), which will be filed with the Singapore court and made available to bondholders.

Detailed below is a summary of the Group’s forecast earnings provided to FTI for purposes of its financial review.


The Group has taken a practical approach by using averages in developing the forecast. Historically however, the industry in which the business

operates is cyclical.

In view of the risks associated with the IMNV outbreak, Management have implemented a more sustainable business model:

i. Reduce stocking density (i.e. therefore yield) to alleviate the risks of outbreaks;

ii. Increase the sale of products with better margins, i.e. value added as opposed to conventional products; and

iii. Grow a more reliable and sustainable segment (i.e. shrimp and fish feed to the free market).

Income statement

In IDR billions 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Actual Actual Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast

IDR/USD exchange rate (average) 9,906 9,062 8,593 8,546 8,632 8,718 8,805 8,893 8,982 9,072 9,163 9,254

Sales 6,833 6,244 6,769 7,300 7,743 8,176 8,668 8,998 9,343 9,705 10,084 10,480

Cost of goods sold 5,997 5,584 5,945 6,286 6,606 6,951 7,327 7,567 7,818 8,108 8,413 8,715

Gross profit 836 660 824 1,013 1,137 1,225 1,340 1,431 1,526 1,597 1,670 1,765

Selling, general and administrative 1,026 1,010 1,128 1,083 1,144 1,204 1,261 1,291 1,322 1,390 1,462 1,514

EBIT (190) (351) (304) (70) (6) 21 79 140 203 206 208 251

EBITDA 177 20 67 324 404 449 509 529 547 564 579 592

Other Income (charges) (14) (381) (186) (108) (108) (94) (73) (62) (57) (53) (50) (46)

EBT (204) (731) (490) (178) (115) (73) 6 78 146 153 158 204

Tax expense (income) 13 (96) (109) (44) (29) (18) 1 19 37 38 39 51

Earnings before minority interest (217) (636) (381) (133) (86) (54) 4 58 110 115 118 153

Minority interest (0) 0 (1) (1) (1) (1) (1) (1) (1) (1) (1) (1)

Net income (217) (635) (382) (134) (87) (55) 4 58 109 114 118 153

Source: Management

Forecast income statement

Detailed below is a summary of the Group’s revenue by product and EBITDA.


Source: Management

Revenue by product

Revenue forecasted to increase from IDR6.7 trillion in 2011 to IDR10.4

trillion in 2020.

The 3 major contributors (1) frozen shrimp (2) shrimp feed and (3) fish

feed contribute 90% of total forecasted revenue.

In 2011, 2/3rds of shrimp feed sales were to plasma farmers and 1/3rd to

the free market. By 2020 the ratio is expected to be 50:50.

EBITDA

EBITDA forecasted to increase from IDR67bln in 2011 to IDR592bln in

2020.

EBITDA improves over time primarily from increases in value added

shrimp products, and increased shrimp feed and fish feed sales to the

free market.

It is important to note that even with a new processing plant in place, the

Group will be operating at near full capacity.

EBITDA is projected to increase by IDR257bln to IDR324bln from 2011 to

2012 mainly due to an increase in gross margin of IDR189bln (i.e.

increase in revenues is greater than increase in cost of goods sold) and

decrease in salaries expense associated with the AWS site of IDR70bln.

Source: Management

Forecast balance sheet

*Other equity items are comprised of difference in equity transaction of subsidiaries, difference in value of restructuring transactions of entities under common

control, and exchange rate differences due to financial statement translation, totaling negative IDR943bln which are all constant throughout the forecast period.

The model has not incorporated any coupon and amortization of new notes contemplated in the exchange offer.


Balance sheet

In IDR billions 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020


Assets

Current asset

Cash and cash equivalents 227 242 130 88 84 149 260 666 967 1,224 1,513 1,808

Accounts receivable 2,090 2,129 2,531 2,487 2,437 2,383 2,400 2,432 2,465 2,500 2,536 2,574

Inventory 1,440 1,401 1,365 1,405 1,471 1,560 1,630 1,678 1,739 1,804 1,871 1,926

Others 211 165 148 148 148 148 148 148 148 148 148 148

Total current assets 3,968 3,937 4,175 4,128 4,141 4,241 4,438 4,925 5,319 5,676 6,069 6,456

Noncurrent asset

PP&E, net 4,005 3,655 3,405 3,344 3,239 3,113 2,954 2,753 2,582 2,423 2,235 2,083

Others 729 841 987 997 990 973 937 882 847 847 847 847

Total non-current assets 4,734 4,496 4,392 4,340 4,229 4,086 3,891 3,635 3,430 3,271 3,083 2,930

Total assets 8,702 8,433 8,567 8,468 8,370 8,326 8,329 8,560 8,749 8,947 9,152 9,386

Liabilities

Current liabilities

Short-term bank loans 1,154 1,091 1,415 1,346 1,282 1,230 1,174 1,197 1,221 1,246 1,273 1,300

Account payable 660 864 888 994 1,027 1,071 1,106 1,235 1,269 1,306 1,344 1,375

Others 288 604 915 896 896 896 896 896 896 896 896 896

Total current liabilities 2,102 2,560 3,219 3,236 3,205 3,197 3,176 3,328 3,387 3,448 3,513 3,571

Noncurrent liabilities

Bonds payable 3,019 2,896 2,763 2,790 2,818 2,846 2,875 2,903 2,932 2,962 2,991 3,021

Others 361 393 383 373 364 354 345 337 328 321 313 306

Total noncurrent liabilities 3,380 3,290 3,146 3,164 3,182 3,201 3,220 3,240 3,261 3,282 3,304 3,327

Total liabilities 5,482 5,849 6,365 6,400 6,387 6,398 6,396 6,568 6,648 6,731 6,817 6,899

Minority interest in net assets of subsidiaries 10 10 10 11 12 13 13 14 15 16 17 17

Share capital and additional paid-in capital 4,144 4,144 4,144 4,144 4,144 4,144 4,144 4,144 4,144 4,144 4,144 4,144

Other equity items* (942) (942) (943) (943) (943) (943) (943) (943) (943) (943) (943) (943)

Retained earnings 8 (627) (1,009) (1,143) (1,230) (1,285) (1,282) (1,224) (1,115) (1,001) (883) (731)

Total equity* 3,211 2,575 2,192 2,058 1,971 1,916 1,920 1,977 2,086 2,200 2,318 2,470

Total liabilities and equity 8,702 8,433 8,567 8,469 8,370 8,327 8,329 8,560 8,749 8,947 9,152 9,386

Source: Management

Forecast cash flow statement

Operating

Improves over time primarily from increases in value added shrimp products, and increased shrimp feed and fish feed sales to the free market.

Investing

Comprised of capital expenditures which will be discussed in the following slides.

Financing

Comprised mainly of short term bank loans (letters of credit and working capital).

Does not include debt service for the BOR bonds (to be discussed in the following slides).

Detailed below is a summary of the Group’s forecast cash flows.


Cash flow statement

In IDR billions 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020


Cash flow from operating activities

EBITDA 177 20 67 324 404 449 509 529 547 564 579 592

Other items (Interest expense, provisions, noncash

gains/losses on asset disposals, foreign exchange)

(462) (537) (347) (66) (66) (50) (29) (16) (12) (44) (41) (48)

Changes in working capital 456 636 2 127 34 27 (36) 65 (79) (82) (85) (81)

Total operating 171 119 (278) 384 372 425 444 578 456 437 453 463

Cash flow from investing activities

Disposals 20 104 1 - - - - - - - - -

Capex (358) (135) (179) (333) (306) (301) (271) (188) (173) (198) (184) (189)

Total investing (338) (30) (178) (333) (306) (301) (271) (188) (173) (198) (184) (189)

Cash flow from financing activities

Receipts 549 421 1,090 997 1,037 1,139 1,161 1,102 1,147 1,196 1,247 1,300

Payments (385) (490) (745) (1,091) (1,107) (1,198) (1,224) (1,085) (1,130) (1,177) (1,227) (1,280)

Receipts - short term bank loans 491 355 767 997 1,037 1,139 1,161 1,102 1,147 1,196 1,247 1,300

Receipts - others (additional paid in capital, etc) 141 69 322 - - - - - - - - -

Payments - short term bank loans (403) (399) (739) (1,071) (1,107) (1,198) (1,224) (1,085) (1,130) (1,177) (1,227) (1,280)

Payments - others (financial lease, related parties, etc) (66) (94) (6) (19) - - - - - - - -

Total financing 164 (70) 345 (94) (70) (59) (62) 17 18 19 20 21

Total cash flow (3) 19 (112) (43) (4) 65 111 407 300 258 289 295

Effect of exchange rate difference (19) (4) - - - - - - - - - -

Beginning cash balance 249 227 242 130 88 84 149 260 666 967 1,224 1,513

Ending cash balance 227 242 130 88 84 149 260 666 967 1,224 1,513 1,808

Source: Management

Maintenance capex budget

Management required to undertake general repairs and maintenance throughout the forecast as is customary.


Composition:

Infrastructure maintenance – road infrastructure, canal, public facilities, etc.

Building – building, office, warehouse, etc. located at the CPB and WM sites and feed mills

Machinery – food processing, workshop engineering, feed mill, warehouse machineries, etc.

Transportation – various transportation equipment (speedboat, tugboat, etc.)

Budget is based on historical averages.

In 2008, maintenance expenses mainly related to the WM and AWS sites.

In 2009, maintenance capex was reduced significantly due to the IMNV attack starting in the 2nd quarter.

In 2010, certain maintenance activities were deferred.

In 2011, IDR145bln projected includes IDR30bln for routine maintenance of the power plant located at the CPB site.

Maintenance capex

In IDR billions 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Actual Actual Actual Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast

Infrastructure maintenance 99 88 49 70 72 75 77 79 82 84 86 89 92

Buildings 79 10 2 21 21 22 22 23 24 25 25 26 27

Machinery and equipment 60 67 34 30 31 32 33 34 35 36 37 38 39

Transportation equipment 51 3 3 3 3 3 3 3 4 4 4 4 4

Furniture, fixtures and office equipment 11 1 5 11 12 12 12 13 13 14 14 14 15

Electrical and water installation 21 11 0 7 7 7 7 7 8 8 8 8 9

Laboratory equipment 5 2 1 3 3 3 4 4 4 4 4 4 4

Total maintenance capex 325 181 95 145 149 154 158 163 168 173 178 184 189

Source: Management

Set out below are capital expenditure items that will be needed in order for the Group to achieve its forecast.

Capital expenditure budget

While the Group needs to spend approximately IDR686bln to support its forecasted operational assumptions and production/processing capacity requirements, the only capital expenditure relating to expansion totals IDR218bln.

Major expenditures are the

processing plant IDR201bln and

fish feed mill IDR163bln

Source: Management


Refer to Appendix C for further details.

Capital expenditure items for the projected period Estimated

cost

IDR bln

Frozen shrimp

Processing plant for WM 201

CPB Site’s FPD extension 31

CPB Site automation 26

Subtotal 257

Fish fry and feed (for expansion)

Floating fish feed mill 163

Fish hatchery 55

Subtotal 218

Infrastructure

Breakwater and intake jetty 69

CPB Site sediment bank 32

WM sub inlet module 55

WM Pidada logistics 18

WM flake ice plant 16

Zoning of the CPB FPD 8

WM outlet canal improvement 7

Dente logistics and KM5.5 6

Subtotal 211

Total 686

Source: Management

Fish hatchery: IDR55.3bln

Floating fish feed mill: IDR162.9bln

Fish hatchery

Purpose:

To support the Group’s expansion of fish feed products which the Group

intends to sell as a bundle with fingerlings.

Floating fish feed mill

Purpose:

To construct a new floating fish feed mill to remove bottleneck in the

production capacity and support forecasted growth in fish feed sales.

Provided opposite is a graph illustrating the difference between EBITDA

levels with and without the fish hatchery and feed mill. The difference in

EBITDA is forecasted to range from IDR38bln in 2013 (after completion

of construction) to IDR207bln in 2020 (total IDR887bln).

This capital expenditure is essential for the Group to grow their fish feed business and supply plasma farmers with fish fingerlings for the ponds as a biofilter to maintain water quality.

Capex details – fish fry and feed


Source: Management

Total difference in EBITDA

is IDR887bln

Processing plant for WM: IDR200.6bln

Purpose:

To construct a new processing plant which would provide additional

shrimp processing capacity of 1,500 MT per month to replace lost

capacity and avoid selling unprocessed shrimp to the open market

which is potentially disastrous for the business.

Provided opposite is a graph illustrating frozen shrimp revenue,

volume and capacity. Without the new plant, and at currently

forecasted harvest volumes, the Group will have to sell the excess

harvest as fresh shrimp (i.e. unprocessed shrimp with lower

margins). This will have major local market implications and create

problems with plasma farmers.

Provided opposite is a graph illustrating the difference between

EBITDA levels with and without the processing plant. The difference

in EBITDA is forecasted to range from IDR46bln in 2014 (after

completion of construction) to IDR136bln in 2020 (total IDR660bln).

This capital expenditure is to replace lost capacity of the AWS site, enabling the Group to produce value added shrimp products which will produce better margins.


Source: Management

Capex details – frozen shrimp

Source: Management

Frozen shrimp processing capacity (18g shrimp)

In metric tons (MT) Before AWS

closure

AWS

capacity

loss

Current New capex Estimated

future

Frozen shrimp products

Conventional 1,073 824 249 - 249

Peeling (value added) 2,224 933 1,291 750 2,041

Cooking (value added) 2,785 1,000 1,785 500 2,285

Food (value added) 608 133 475 250 725

Total 6,690 2,890 3,800 1,500 5,300

Source: Management

Total difference in EBITDA

is IDR660bln

CPB site FPD extension: IDR30.5bln

CPB site FPD automation: IDR25.8bln

FPD extension

Purpose:

The extension facility is built next to the existing CPB FPD to further process shrimp harvest to food products.

This facility replaces the lost production capacity previously installed at AWS.

Producing higher composition of food products is expected to yield better margins.

FPD automation

Purpose:

Some processes with a considerable level of repetitive tasks such as peeling, grading, sizing, and packing will be partially automated to reduce our

dependency on manual labor.

Automation program will be gradually implemented, starting with process steps that offers better quality consistency.

In the long run, due to the fact that manual labor is becoming increasingly expensive (higher wages over time) and cumbersome (tighter labor laws), the

automation will help to keep the processing plant competitive.

This capital expenditure has been committed and will increase revenue via an increase in value added products.

Capex details – frozen shrimp


WM and CPB breakwater & intake jetty: IDR69.1bln

CPB site sediment bank: IDR32.4bln

WM and CPB breakwater and intake jetty

Purpose:

To repair and add extensions to sections of the intake jetties located at the

WM and CPB sites which have collapsed.

CPB site sediment bank

Purpose:

To construct a sediment bank as an additional sediment reduction

mechanism for incoming water prior to distribution to the production modules.

This capital expenditure will improve incoming water quality and quantity which is essential in achieving the forecast SR and pond yields.

WM site breakwater and intake jetty

CPB site breakwater and intake jetty

CPB site sediment bank

Capex details – infrastructure


WM sub inlet module: IDR55.0bln

WM Pidada logistics: IDR17.8bln

Sub inlet module

Purpose:

To elevate the existing sub-inlet supply canal elevation at the WM site

(which is currently lower than the ponds’ base) to prevent seepage from

one culture pond to the next which can spread disease.

Pidada logistics

Purpose:

To be used as the main route for logistics to and from the WM site and

shrimp harvest to the food processing division (“FPD”) located at the CPB

site (i.e. instead of utilizing the canals which form part of the AWS site).

Sub inlet module will reduce the risk associated with harvest loss due to disease through cross contamination.

Upgrading road and facilities to safeguard the shrimp harvest and supplies to WM.



WM outlet canal improvement: IDR7.0bln

Dente logistics and KM5.5: IDR6.0bln

Outlet canal improvement

Purpose:

To repair the damage due to erosion on the outlet canal which acts as a main

transportation route within the WM site.

Dente logistics and KM5.5

Purpose:

Upgrade of the Dente Port and KM5.5 (port located at WM) in order to

handle harvest from WM.

Improving the canal will prevent erosion to avoid pond loss.

Improving logistics infrastructure will increase revenue as further harvests can be processed.


KM5.5 Dente


WM flake ice plant: IDR15.5bln

CPB zoning: IDR8.4bln

Flake ice plant at WM will assist in maintaining freshness of the shrimp and reduce transport costs from the CPB site.

Zoning is required to achieve bonded zone status of CPB and keep the bonded zone status of WM.

Flake ice plant

Purpose:

To replace the flake ice plant located at the AWS site which is unusable due to the closure of the AWS site.

Zoning

Purpose:

Construction of perimeter line around CPB FPD and its land parcels.

Construction of a logistic warehouse within the bonded zone for customs purposes.









7. Q&A


Agenda


Restructuring to be carried out through a Scheme of Arrangement

Restructuring will be implemented by way of an Exchange Offer (or, alternatively, an amendment and restatement of the Existing

Notes).

New Notes will be issued in exchange for Existing Notes on a $ for $ basis.

An information memorandum will need to be produced by the Group to ensure that the Exchange Offer complies with all

applicable securities laws and regulations.

Exchange Offer to be implemented via a Scheme of Arrangement in Singapore.

Process likely to take 3-4 months.

Subject to the requisite approvals (75% in value and 50% in number of creditors present and voting at the scheme meeting) and

court sanction being obtained, the Scheme of Arrangement will become effective and the Existing Notes will be exchanged for

New Notes (or alternatively, the Existing Notes will be amended and restated).

The Scheme of Arrangement will be structured as a compromise between the bondholders and the Company, meaning that the

bondholders (and not the trustee) will be required to vote on the Scheme of Arrangement.


Summary of restructuring terms

Principal payments:

Incremental amortization – If Actual EBITDA exceeds Projected EBITDA

by at least US$15,000,000, the Company will apply 15% of the difference

between Actual EBITDA and Projected EBITDA to fund a reverse Dutch

auction whereby holders of New Notes will be invited to tender New Notes

for redemption by the Company at a discount to face value.

Term Remarks % of principal

Six months following the fifth

anniversary of the Issue

Date

US$ 16,250,000 5%

Sixth anniversary of the

Issue Date

US$ 16,250,000 5%

Six months following the

sixth anniversary of the

Issue Date

US$ 16,250,000 5%

Seventh anniversary of the

Issue Date

US$ 16,250,000 5%

Six months following the

seventh anniversary of the

Issue Date

US$ 16,250,000 5%

Eighth anniversary of the

Issue Date

The balance 75%

Year Coupon rate p.a. Option to defer

coupon

Year 1 2% 1%

Year 2 2% 1%

Year 3 4% 2%

Year 4 4% NA

Year 5 4% NA

Year 6 6% NA

Year 7 8% NA

Year 8 8% NA


Coupon payments (semi-annual basis):

Deferral of interest – If Actual EBITDA for any Relevant Period is less than

Projected EBITDA, the Company will have the option to defer payment of

a portion of the interest that falls due for payment on the Interest Payment

Date (through (and including) the sixth Interest Payment Date) falling

immediately after such Relevant Period. The amount of interest that may

be deferred by the Company will not exceed 50% of the total amount of

interest payable in respect of the relevant Interest Period.

Other Proposed Restructuring Terms

Term Remarks

Accrued and unpaid Coupon of Existing Notes Waiver of accrued and unpaid coupon in respect of Existing Notes.

Guarantees and security package Retention of existing guarantee and security package.

Redemption from Asset Sale Proceeds Proceeds from the sale of assets in excess of US$1,000,000 and outside the ordinary course,

to be utilized for redemption of notes.

Redemption from AWS Proceeds Net recoveries in relation to AWS in excess of US$1,000,000 to be applied in redemption of

notes.

Covenants, Representations and Warranties Customary covenants, representations and warranties to be included in the documentation for

the New Notes.

Budgets Budgets (first year opex budget and 8 year capex budget) to be submitted to bondholders

prior to issuance of New Notes. Yearly opex budgets to be submitted to bondholders

thereafter. Any material variations (10% increase in any line item or total budgeted opex or

capex) must be notified to holders of New Notes and approved by FTI Consulting.

Compliance Auditor shall monitor compliance with covenants, budgets and any capex re: AWS. Auditor to

report to bondholders.

Events of Default Standard events of default for a transaction of this nature.

Governing law New York


Illustration of debt service proposal

Debt service terms take into consideration the expected lack of new financial facilities available to the Group in the forecast period.

Proposed contracted coupon rates will leave the Group with a minimal cash balance throughout the period especially in the initial years, 2012 to 2015 i.e.

IDR76bln, IDR37bln and IDR 42bln in December 2012, 2013 and 2014 respectively.

The PIK arrangement enables a deferral of 50% of the contracted portion of the coupon rate in the first 3 years. The deferral option may be exercised by the

Group if Actual EBITDA is less than Projected EBITDA during relevant periods.

If the PIK option is exercised, the Group may be able to maintain higher cash balances of IDR89bln, IDR79bln and IDR126bln in December 2012, 2013 and

2014 respectively.

The proposed debt service terms are in our view the most suitable in the circumstances:

PIK arrangement reduces the risk associated with a default in the early years due to the highly cyclical nature of the Group’s industry.

The Group may only capitalise 50% of the coupon rate within a limited time period and subject to the metrics discussed above.

Set out below are the forecasted repayments to bondholders based on the debt service proposal.


In IDR billions

Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec Jun Dec

Ending cash (adjusted for capex and financing) (note 1) A) 300 132 149 103 67 122 153 213 248 343 571 729 872 1,002 1,132 1,260 1,401 1,550 1,695 1,845

Restructuring proposal - coupon only

Total Coupon rate % per annum NA NA NA 2% 2% 2% 2% 4% 4% 4% 4% 4% 4% 6% 6% 8% 8% 8% 8% NA

Less: Total Coupon payments - - - (28) (28) (28) (28) (57) (57) (57) (58) (58) (58) (87) (83) (105) (100) (95) (75) -

Principal repayment rate % NA NA NA 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 5% 5% 5% 5% 5% 75% 0%

Less: principal payments - - - - - - - - - - - - - (147) (147) (148) (149) (150) (2,255) -

Adjust: foreign exchange, income tax - - - (0) (0) (1) (1) (1) (1) (2) (2) (3) (3) 7 18 6 15 3 (1) (5)

Total payments and adjustments - - - (28) (28) (29) (29) (58) (59) (59) (60) (61) (61) (226) (212) (248) (234) (242) (2,331) (5)

Cumulative payments and adjustments B) - - - (28) (56) (85) (114) (172) (230) (289) (349) (410) (472) (698) (910) (1,158) (1,391) (1,633) (3,964) (3,969)

Accumulated ending cash (after debt service) (note 2) (A+B) 300 132 149 76 10 37 39 42 17 54 221 319 400 304 222 102 10 (83) (2,269) (2,124)

Note1: This amount excludes any debt repayment, capex is adjusted for VAT (i.e. increased to IDR686bln from initially IDR672bln), additional financing is removed

Note 2: Accumulated ending cash represents cash balance per note 1 less accumulated debt service

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020







7. Q&A


Agenda


Proposed Next Steps

Tasks Proposed timetable

1 Conduct bondholder ID 29 February 2012

2 Agree commercial terms of scheme and documents for new notes 16 March 2012

3 Obtain: (i) executed conditional support agreements; and (ii) approval of financial

projections and initial opex and capex budgets; from holders of existing notes

16 March 2012

4 Draft documents for Scheme of Arrangement and Exchange Offer 31 March 2012

5 Initiate court process for Scheme of Arrangement 31 March 2012

6 Conduct scheme meeting and voting process 30 April 2012

7 Court sanction hearing 18 May 2012

8 Completion of note exchange 29 June 2012








7. Q&A


Agenda


Appendices

Appendix A


2009 2010 2011

CPB Q 1 Q 2 Q 3 Q 4 Q 1 Q 2 Q 3 Q 4 Q 1 Q 2

Number of ponds stocked 1,921 1,792 890 1,304 329 633 1,593 1,240 1,680 1,439

Total ponds harvested 2,231 2,080 1,058 1,067 1,000 100 681 1,356 1,437 1,656

Ave Stock density (PL/m2) 133 100 84 95 67 56 59 58 64 68

Average DOC (days) 105 69 76 80 67 81 104 97 96 87

Average MBW (g) 17.10 10.01 9.59 12.00 8.80 12.72 17.13 17.80 19.37 16.93

Ave growth rate (g/wk) 1.14 1.02 0.88 1.05 0.92 1.10 1.15 1.28 1.41 1.36

Average Survival Rate (%) 56.9 36.7 46.1 47.2 45.2 55.2 75.2 72.9 66.3 60.9

Average FCR 1.97 2.27 1.83 1.81 1.93 2.07 1.85 1.75 1.75 1.85

Average Yield/0.5 ha (mt) 6.88 2.41 2.07 2.45 1.92 2.21 3.67 3.71 3.74 3.27

Total Yield (mt) 15,360 5,020 2,195 2,507 1,923 201 2,503 5,001 5,376 5,409

WM

Number of ponds stocked 2,069 3,062 2,564 1,897 2,788 2,734 2,932 2,079 1,749 3,230

Total ponds harvested 1,338 938 2,425 2,626 1,725 2,111 2,594 2,960 1,403 1,024

Ave Stock density (PL/m2) 92 98 81 83 84 85 93 86 86 86

Average DOC (days) 120 95 103 113 107 96 106 96 93 88

Average MBW (g) 16.88 16.54 16.09 18.98 18.98 16.05 16.26 16.77 16.75 16.59

Ave growth rate (g/wk) 0.98 1.22 1.09 1.18 1.24 1.17 1.07 1.22 1.26 1.32

Average Survival Rate (%) 72.0 73.7 80.5 77.5 72.7 78.7 77.5 62.6 68.7 74.0

Average FCR 2.01 1.65 1.61 1.68 1.66 1.57 1.75 1.83 1.62 1.58

Average Yield/0.5 ha (mt) 5.91 5.53 6.55 6.29 5.75 5.38 5.46 4.96 5.02 5.37

Total Yield (mt) 4,339 2,760 8,113 9,414 5,327 6,502 7,541 8,237 4,005 3,469

Source: Table 1, Dr. Briggs’ follow up report dated 4 October 2011

Quarterly production data CPB and WM farms 2009 to Q2 2011

Appendix A


Source: Figure 1, Dr. Briggs’ follow up report dated 4 October 2011

Monthly production data CPB farm January 2009 to June 2011

Appendix A


Source: Figure 2, Dr. Briggs’ follow up report dated 4 October 2011

Monthly production data WM farm January 2009 to June 2011

Appendix A


Source: Management

Monthly production data AWS farm January 2009 to May 2011

Appendix A


Pond yield has declined further in 2010 due to the IMNV but is expected to increase as viral mitigating measures (e.g. reduced stocking density) take effect.

A reduced stocking density reduces pond yield

But increases the

shrimp’s chances

of survival

Source: Management Source: Management

Source: Management Source: Management

Appendix B

Source: Table 5, Dr. Briggs’ follow up report dated 4 October 2011

CPB 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

DOC (days) 100 100 100 100 100 100 100 100 100 100

Stocking Density (PL/m2) 63 63 65 67 70 70 70 70 70 70

Survival Rate (%) 66 66 70 70 70 70 70 70 70 70

MBW (g) 18 18 18 18 18 18 18 18 18 18

Pond Yield (mt/0.5 ha SPU) 3.742 3.742 4.095 4.221 4.41 4.41 4.41 4.41 4.41 4.41

FCR 1.8 1.8 1.8 1.8 1.8 1.8 1.8 1.8 1.8 1.8

Ponds stocked (no/yr) 7,448 7,620 7,620 7,620 7,620 7,620 7,620 7,620 7,620 7,620

Farm yield (mt/year) 26,477 27,088 29,644 30,556 31,924 31,924 31,924 31,924 31,924 31,924

WM 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

DOC (days) 100 100 100 100 100 100 100 100 100 100

Stocking Density (PL/m2) 85 85 85 85 85 85 85 85 85 85

Survival Rate (%) 73 73 73 73 73 73 73 73 73 73

MBW (g) 18 18 18 18 18 18 18 18 18 18

Pond Yield (mt/0.5 ha SPU) 5.585 5.585 5.585 5.585 5.585 5.585 5.585 5.585 5.585 5.585

FCR 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7

Ponds stocked (no/yr) 5,312 5,916 5,916 5,916 5,916 5,916 5,916 5,916 5,916 5,916

Farm Yield (mt/year) 26,701 29,737 29,737 29,737 29,737 29,737 29,737 29,737 29,737 29,737

Total CPP Yield (mt/year) 53,178 56,825 59,380 60,293 61,661 61,661 61,661 61,661 61,661 61,661


CPP projections for production parameters in CPB and WM farms from 2011 to 2020

Appendix C

Justifications for proposed frozen shrimp capex items

Processing plant for WM

Justification:

Additional processing capacity required to replace loss of processing capacity at AWS.

Average monthly harvest is forecasted at 4,563MT per month from 2011-2013 which exceeds current capacity of 3,800MT per month.

Value added products (i.e. processed shrimp) have higher margins.

CPB site FPD extension

Justification:

To increase the production of value added products which contributes higher margins compared to conventional products (i.e. un-processed).

CPB site automation

Justification:

This project will assist in maintaining processing capacity by reducing the impact of employee turnover (which currently results to 2 to 4 months lost capacity).

High turnover of young workers.

New staff training takes 3 to 6 months.

Difficult to find qualified staff.


Appendix C

Justifications for proposed fish fry and feed capex items

Floating fish feed mill and fish hatchery

Justification:

Insufficient fry to supply to all plasma farmers.

Fish are important as they are used as a biosecurity measure to:

Reduce the risk associated with the spreading of disease; and

Increase water quality.

Group’s strategy is to sell fish fry with fish feed (i.e. bundle to increase sales prices and margins).

Fish feed expected to be a “highly profitable” business for the Group.

EBITDA with the new capex is forecasted to range from IDR60bln in 2011 to IDR592bln in 2020 (total IDR4,558bln) compared to EBITDA without the capex

ranging from IDR60bln in 2011 to IDR386bln in 2020 (total IDR3,655bln).


Appendix C

Justifications for proposed infrastructure capex items

Breakwater and intake jetty and CPB site sediment bank

Justification:

Help achieve clean water which Dr. Briggs states is essential for the

Group to achieve it production targets.

WM sub inlet module

Justification:

To prevent erosion and seawater containing a high level of suspended

solids from entering the inlet which reduces the quality of the water for the

ponds.

WM Pidada logistics

Justification:

Present system of using the water ways as the major mode of

transportation has several limitations:

i. Lesser degree of security;

ii. Causes serious erosion that impacts the environment and the

shrimp culture (the fact that this ultimately impacts on the AWS site

farmers increases security risk).


WM flake ice plant

Justification:

To avoid the thawing of 30% to 35% of the ice due to the transportation of

the flake ice from the CPB site to the WM site. Thawing reduces the

freshness of the harvested shrimp.

Customers require that the freshness of the shrimp is maintained for

certain value added products.

Without the ice needed to maintain freshness of shrimp at 4°C, the shrimp

will be of quality and some will even have decomposed) leading to lower

selling prices (up to 10%) and losses.

Fencing of the CPB FPD

Justification:

To make the FPD and building a “bonded zone” which will avoid

revocation of WM bonded zone status and incurring of previous VAT that

is supposed to be paid if WM were not considered a bonded zone.

Appendix C

Justifications for proposed infrastructure capex items

WM outlet canal improvement

Justification:

If canal is not enhanced, there is an inherent risk that the canals will fail.

Canal failure to result in destruction of stock, downtime for ponds and

social issues with the plasma farmers.

Dente logistics and KM5.5

Justification:

Avoids having to delay harvests due to limited capacity of the current

port.

Urgent to ensure the facility can process the harvests from WM.


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