SUMMARY: DEVELOPMENT: PURCHASE OF THE CALVES (1)

Transcription

1 PROJECT LIVESTOCK - CATTLE & BREEDS - PORTUGAL-SPAIN LIMOUSIN / ANGUS / CHAROLAIS / BELGIAN BLUE / SIMMENTAL / BLONDA ALL CROSSED AND EXCELLENT QUALITY SUMMARY: 1- PURCHASE IN ORIGIN OF THE CALVES (3000 HEADS) PROM. 200 KG. 2- TRANSFER THEN TO THE FEEDLOT OF FATTENING IN PORTUGAL 3- COMBINED FAT FEED AND PASTURES TO THE KG. CONTRACTED 4- LIVESTOCK SALE AND TRANSPORT TO DESTINATION CLIENTS (SPAIN) 5- FINANCIAL SUMMARY OF THE PROJECT 6- INVESTOR PROPOSALS DEVELOPMENT: PURCHASE OF THE CALVES (1) The most important thing is that we have access to very good herds, since they are breeds of the socalled "genetic herds" and in this case case, any of them, whether they are of the breed Limousin / Angus / Charolais / Belgian Blue / Simmental / Blonda, Are well-endowed farms with excellent meat and volume that can reach in 14 months to 300 kg. and 20 months of age to 600 kg. on average. Its meat is one of the most quoted in the market of cattle standing in Europe getting to pay for these two breeds at the rate of 3.50 x kg. in foot. We have the breeders in origin who would supply the animals from their farm / field / farm to the intensive fattening penstocks and subsequent pre-shipment quarantine for export, for the mentioned quantities of 3000 heads each month, which is estimated We will close a complete natural cycle and resume the next every 30 days. For these "natural cycles" we hope to be able to associate with an investor with an available amount of 2 million euros, who will be returned under contract at the maximum 12 months (12 months with 30 days for charges and other paperwork to final buyers) The sum of 2.2 million Euros, or 10% of annual interest. In summary when signing the contract we need 2 million euros ( 2,000,000), we buy the cattle, we transfer it to our facilities of fattening, we close the deals of sale with the regional clients and other Importers, we carry out the procedures of export and quarantine In origin, we load and transfer to the Feedlot of loading or to the property of the buyer (if it is in Spain / Europe) to the lot of cattle finished after the quarantine. And so on as agreed and / or agreed in each case by means of the corresponding sales contract. TRANSFER TO FAT FINISH (2) Once purchased and chosen the herd of each purchase, will proceed to transfer to the intensive feeders we have in Portugal for fattening to the ideal weight according to the contract for that quota. (We have three types: 280, 350, 500 kg., etc.). Once this is approaching the ideal weight, the pre-shipment 21-day quarantine will be carried out, and according to the type of Incoterms 2010 agreed, it will be transferred to the authorized pens in the Feedlost loading in Portugal, or sent to the territory Spanish through special trucks to the delivery destination agreed with the customer.

2 SALE AND AGREEMENTS WITH CUSTOMERS (3) Once the type of sale has been agreed (Single spot or monthly / annual supply, depending on the final customer), each lot will be prepared and separately, lots and quotas, calves selected according to the requested cross breed, and All the documentation of each calf (individual traceability) will be prepared according to the specific request of each client. The sales contracts of each case will be prepared and the export documents and corresponding health certificates will be prepared, for which a tracking file will be kept for each client. Currently we have firm orders for 3000 heads per month and 500 finished cows of 465kg. On average, monthly delivery to slaughterhouse in Spain. TRANSFER TO SPAIN FOR SLAUGHTERHOUSES (4) For the cases in which the order is CIF, the shipment to Destiny will be carried out in trucks and corrals conditioned for that purpose, of the lot to be sent, the transport will be contracted and corresponding certificates so that the delivery and deliveries is as fast as possible avoiding the stress of the herd. Once the total number of calves to be sent is loaded, the corresponding COMMERCIAL INVOICE (C / I) will be issued to the Buyer and SGS Inspection Q&Q if requested and paid. The complete data of the each truck and the cargo will be available to the customer immediately upon its dispatch and will be delivered to the same or its dispatching agent once the truck is loaded and Its delivery is authorized. For sale to customers and slaughterhouses in Spain, deliveries will be made in trucks of 60/80 units (according to weight) and we already have several customers interested in buying nothing else the cattle is ready for delivery at destination with an average of the calves in 270 / 280 kilos each. GENERAL INFORMATION ON THE BUDGET (5) Our farm will be part of the intensive livestock model, exclusively dedicated to cattle breeds Limousin / Angus / Charolais / Belgian Blue / Simmental / Blonda, Holstein, etc.. For the development of the activity, there is a specific farm located in the area of Setubal, Portugal. - Selection of cattle at origin - Weaned calves of approx. 180/200 kg. - Sale and transfer from Portugal to Spain after quarantine and export permits - Special transport with Trucks to Spain Clients. - Fattening to the desired specific weight of 280/350/500 kg. and sale to the final customer according to orders FINANCIAL SUMMARY OF THE PROJECT ECONOMIC STUDY OF THE PROJECT This section will study and analyze the economic viability of the project. The present study will be carried out in a horizon to three (3) years and then more years... As an example, we have made actual calculations with the data provided to date. BASIC DATA: A- Importation of 3,000 cattle in the first 3 months (monthly) (Year 2017/2018) = units. B- Import of 3,000 cattle in the rest of 33 months (monthly). (Year 2018/2020,) = 99,000 units. From year 2 and the cattle will be PAID with own financing End of the Phase I.- Imports made every month, the first being scheduled in December (Month 1.) Purchase price per head: an acquisition price of 500 c / u (maximum) has been established. Live animal sales price: a selling price of 1200 has been established. (For Export) The average weight of each calf at the time of sale has been established in three types of weight: Calves of 280/290 kg., Of 350/380 kg. And 500/550 kg.

3 The total sales plus taxes amount to the sum of: (depending on the weight of the sale and for Spain): - 1: 280 kilos at 1200 / ud. ) - EXAMPLE USED FOR CALCULATIONS ONLY - 2: 350 kilos at 1350 / ud. ) - 3: 500 kilos at 1500 / ud. ) In addition, account has been taken of such things as transport for hire or reward, feed of livestock, veterinary, staff and general expenses. All these expenses for each trip amount to the sum approx. From (all inclusive) Corporate tax of 25% (Spain):, and the annual cost of interest is (Approx.) The benefits per trip would be around EURO / approximately (PHASE I). And EUROS (one trip monthly), OR (for two trip monthly), in Phase II. THE GLOBAL BENEFIT IN A HORIZON TO 3 YEARS: + 34 MILLION EUROS ====//=\\==== WITH THE DATA SUBMITTED THE FOLLOWING SHALL BE OBTAINED: Annual Financial Plan: This plan is ideal with 3 trips in the first phase (3 months) and with a total of calves each year, and the next phase II, with another 33 trips (33 months /calculation ), with another 99,000 calves. From trip No. 4, is possible, already with 3000 calves on two trips each month. To pay Interest = 200,000 for annual payments, total subscribed for Interests of 200,000, only in the first phase, and from trip 3 (MARCH 2018), is already paying everything with own funds. In theory at the end of the first phase, for the 3 complete trips, we would already have available sufficient cash in the box. (From here the annual benefit will already be very important because it will be 3000 CALVES ). WITH THE DATA SUBMITTED THE FOLLOWING SHALL BE OBTAINED: ABSTRACT: TRAVELS IN FIRST PHASE; Trip 1 / Phase I : 3 total trips OPERATING MONTH: 01 DECEMBER 2017 We are looking for a loan /investment of : 2 MILLION To 3 MONTHS with a 10% interest Equivalent in US Dollars, to: 2,354,354 u$s 1,380,000 EXPENSES IN FARM BY AGGREGATED KILOGRAMS: ( 1,25 X KG.) Pay after sale TAXES / Insurance / CIF VAT, tariffs, etc. + Export License ,000 / Balance 255,000

4 FEEDING DURING FATTER PERIOD 1.5kg. X 3000 x 60 days : SALE: 280 Kg. ( In Orig.) F/Exp. Price Portugal : 3.45 x kg. = 966 each 966 2,898, ,600,000 + VAT/TAX 10 % = Less 0 (*) 3,225,000 TOTAL BALANCE OF OPERATION: 1,225,000 balance neto ganancia final x viaje= 918,750 Total available : 3,225,000 Summary: Total available : 3,225,000 Year Dec : 1,225,000 - Total (*) CASH AVAILABLE : 2,918,750 Total Interest : Trip 2 / Phase I: 3 total trips OPERATING MONTH: JANUARY 2018 SECOND TRIP DETAILS THE SAME AS THE PREVIOUS EXAMPLE Balance partial : 2,918, ,00 EXPENSES IN FARM BY AGGREGATED KILOGRAMS: ( 1,25 X KG.) Plus others costs Pay after sale TAXES / Insurance / CIF VAT, tariffs, etc. + Export License ,538, Balance 1.173,750 FEEDING DURING FATTER PERIOD 1.5kg. X 3000 x 60 days : SALE: 280 Kg. ( In Orig.) F/Exp. Price Portugal : 3.45 x kg. = 966 each Balance 903, ,898, ,600,000 + VAT/TAX 10 % = Less - 0 4,503,750 TOTAL BALANCE OF OPERATION: 4,503,750 + previous balance = Total available : 4,503,750

5 Summary: Total available : 4,503,750 Year Dec : 1,225,000 - Total (*) CASH AVAILABLE : 4,197,500 Total Interest : Trip 3 / Phase I: 3 total trips OPERATING MONTH: FEBRUARY 2018 THIRD TRIP DETAILS THE SAME AS THE PREVIOUS EXAMPLE Balance partial : 4,197,500 1,380,000 EXPENSES IN FARM BY AGGREGATED KILOGRAMS: ( 1,25 X KG.) Plus others costs Pay after sale TAXES / Insurance / CIF VAT, tariffs, etc. + Export License ,817, Balance 2,452,500 FEEDING DURING FATTER PERIOD 1.5kg. X 3000 x 60 days : ,182,500 SALE: 280 Kg. ( In Orig.) F/Exp. Price Portugal : 3.45 x kg. = 966 each Balance 2,182, ,898, ,600,000 + VAT/TAX 10 % = Less -0 5,422,500 TOTAL BALANCE OF OPERATION: 5,422,500 Total available : 5,422,500 Summary: Total available : 5,422,500 Interest payment SHARE: 1/1: Dec/ ,000 Total Interest : CASH AVAILABLE: 5,222,500 Year Next Mar : 1,225,000 - Total 3/ ,916,250 ABSTRACT: TRAVELS IN PHASE II ; Trip 1 / Phase II: 33 total trips OPERATING MONTH: 4 MARCH 2018

6 Already paid the TOTAL loan / investment of 2,000,000 euros PAYMENT OF INTEREST AND DEBT: PAID 2,000,000 CASH AVAILABLE HERE: 2,916,250 1,380,000 OTHERS VARIOUS TAXES / Insurance / CIF VAT, tariffs, etc. Export License ,250 SALE: 280 Kg. ( In Orig.) F/Exp. Balance 1,536, kg. X 3000 x 80 kg : ,236,250 Price Portugal : 3.45 x kg. = 966 each Balance 4,836, ,898, ,600,000 + VAT/TAX 10 % = Less march ,170,000 TOTAL BALANCE OF OPERATION: 4,170,000 Total available : 4,170,000 Next Mar./June/Sept./Dec : 1,225,000 - Total 2018 Quarterly = Year Next june 2018 : 1,225,000 - Total 2/ ,170,000 Trip 2/ Phase II: 33 total trips OPERATING MONTH: 5 APRIL 2018 FIRST TRIP WITH OWN MONEY NET TRIP GAIN CASH AVAILABLE HERE: 4,170,000 1,380,000 OTHERS VARIOUS

7 TAXES / Insurance / CIF VAT, tariffs, etc. Export License ,170,000 SALE: 280 Kg. ( In Orig.) F/Exp. Balance 2, kg. X 3000 x 80 kg : ,490,000 Price Portugal : 3.45 x kg. = 966 each Balance 2,490, ,898, ,600,000 + VAT/TAX 10 % = Less march ,423,750 TOTAL BALANCE OF OPERATION: 5,423,750 Total available : 5,423,750 Next Mar./June/Sept./Dec : 1,225,000 - Total 2018 Quarterly = Year Next june 2018 : 1,225,000 - Total 2/ ,423,750 TRIP 6 / PHASE II: AND SUCCESSIVE TAKING INTO ACCOUNT THAT EACH JOURNEY REPORTS A BENEFIT OF 918,750 EUROS, AND THAT ARE 31 TRIPS MORE FROM HERE (TRIP 5), ALLOWS US TO CALCULATE: (FOR 36): THE BENEFITS FOR EACH OF THE MONTHLY SALES IS 918,750 AND THIS IS TO BE ADDED THE PREVIOUS BALANCE, AS A SUMMARY MODE IS DETAILED UP TO THE TRIP 36, AND MORE DOWN AN ANNUAL PROJECTION UNTIL THE YEAR (ALTHOUGH WE EXPECT THAT THE BUSINESS FOLLOWS FOR A LONG TIME MORE) BETWEEN TRIP 6 TO 36 ( END PHASE II ) : TRIP 36 / FASE I I : OPERATING MONTH : 36 JANUARY TRIP 36 - WITH OWN MONEY 5,423, ,481,250 BALANCE : (AVAILABLE) TO MONTH 36 : 33,905,000 1,380,000 OTHERS VARIOUS TAXES / Insurance / CIF VAT, tariffs, etc. Export License

8 ,905,000 SALE: 280 Kg. ( In Orig.) F/Exp. Balance 35, kg. X 3000 x 80 kg : ,225,000 Price Portugal : 3.45 x kg. = 966 each Balance 32,225, ,898, ,600,000 + VAT/TAX 10 % = Less march ,423,750 TOTAL BALANCE OF OPERATION: 35,158,750 Total available : 35,158,750 UNTIL HERE SINGLE CALCULATION AND FOR 36 TRIPS OF 3000 MONTHLY TERMS = 35,158,750 ABSTRACT TOTAL PHASE 2 WITH 3000 CALVES MONTHLY : Total money invested in this project: TWO million of Euros Initial 2,000,000 Total money charged for all 3 trips: PHASE 1 For others 33 trips: PHASE 2 Total money for expenses in 3 trips: PHASE 1 For the others 33 trips of : PHASE 2 Total Corporate tax ( VAT / TAX of 25 %) pay yearly in: PHASE 1: 3 TRIPS PHASE 2: 33 TRIPS Total Interest for Investors : PHASE 1 Total food of all period: 3 x 1,380,000 ) 33 x 1,380,000 ) ( 3 x 365,000 ) ( 33 x ) IN CORPORATE TAXES : YEARLY 3 TRIPS 33 TRIPS ( saving x payment of interest) 36 trips x , PHASE 1: COST OF INVESTMENT PLUS THE INTERESTS PHASE 1: START WITH CREDIT / INVESTOR PHASE 2 : START WITH OWN FUNDS PAYMENT -YEARLY + cancelatión Total Bank Expenses : AVAILABLE 100% FOR 3000 CALVES FOR TRIP ,916,250 We will promote: 10 direct jobs (during the first phase of the 2 year project) and 10 more indirect jobs between Carriers, commissioners, veterinarians and various local partners. NOTE: Next Mar./June/Sept./Dec : 1,225,000 - Total 2019 Quarterly = Next Mar./June/Sept./Dec : 1,225,000 - Total 2020 Quarterly =

9 Next Mar./June/Sept./Dec : 1,225,000 - Total 2021 Quarterly = TRIP 37 / PHASE III: AND SUCCESSIVE 37/48 - AÑO 4 45,348,750 49/60 - AÑO 5 56,373,750 61/72 - AÑO 6 67,398,750 73/84 - AÑO 7 78,423,750 85/96 - AÑO 8 89,448,750 97/108 - AÑO 9 100,473, /120 - AÑO ,498,750 Summary of monthly trips with 3000 calves each NOTE: All the following trips with 3000 calves on TWO monthly trips, and at this point we will try to have our own boat for the transport of livestock. PROPOSAL FOR INVESTORS (6) We propose to our investor (s) the following: For these "natural cycles" we hope to be able to associate with an investor with an available amount of 2 million euros, who will be returned under contract at the maximum 12 months (12 months with 30 days for charges and other paperwork to final buyers) The sum of 2.2 million Euros, or 10% of annual interest. In summary when signing the contract we need 2 million euros ( 2,000,000), we buy the cattle, we transfer it to our facilities of fattening, we close the deals of sale with the regional clients and other Importers, we carry out the procedures of export and quarantine In origin, we load and transfer to the property of the buyer (if it is in Spain / Europe) to the lot of cattle finished after the quarantine. And so on as agreed and / or agreed in each case by means of the corresponding sales contract. OTHER PROJECT POINTS: MOTIVATIONS The present lack of this type of cattle of excellent quality and performance of channel, imported of fields in Portugal, zone propitious for the breeding of this type of cattle that interests us (Limousin / Angus / Charolais / Blue Belgian / Simmental / Blonda, All crossed.), And with the possibility of final fattening up to its ideal weight of sale of these here in Spain for its later resale in the cattle market of consumption, which added to that we know how to activate special fattening by doubling in a few months the Weight of livestock, motivates us to this type of projects very advantageous and profitable. Another important factor is that as the industry is located in the Spanish Mediterranean region, since this is a depressed region within the whole of the Spanish state, with socio-economic values below the national average, the level of wages will be below average National level, this makes capital management and financing more viable during the process of fattening in the region. The installation of a new industry could be benefited by the receipt of subsidies or favorable credits by the public administrations, since in addition to creating direct and indirect employment, we would be enhancing the quality of life of the region and its purchasing power would greatly improve, With much repercussion on the regional economy. Although we hope to be able to reach important agreements with an already established company, and that is currently in the development stage with ample space to prime and with the slaughtering, cutting and processing process of final product packaging, probably with own brand and distribution chain and Implanted, which seeks to expand its processing capacity in number of heads, which would position it in its market segment, as the cattle establishment of Spain in expansion and also as the largest processor of meat of exquisite quality.

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