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Proyecto Agro - Energético
Business Plan
Jun 2022
Strictly Private and Confidential - DO NOT DISTRIBUTE
Disclaimer:
This Presentation and other information which you are given at the time of presentation, in whatever form, do not constitute or form part of any offer or
invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any shares in Bonanza of Farming and Energy S.A.C. (BFE), nor shall
it or any part of it form the basis of, or be relied upon in connection with, any contract or commitment whatsoever. No part of the contents of this
Presentation is to be taken as any form of commitment on the part of the Company to proceed with any transaction, and the right is reserved to
terminate any discussions or negotiations with any prospective investors. The distribution of this Presentation in certain jurisdictions may be restricted by
law. No action has been taken or will be taken by the Company, by the existing shareholders or by any professional adviser to the Company, that would
permit an offer of shares or possession or distribution of this Presentation where action for that purpose is required. Persons into whose possession this
Presentation comes should inform themselves about, and observe, any such restrictions. Any failure to comply with these restrictions may constitute a
violation of the securities laws of any such jurisdiction.
In no circumstances the Company will be responsible for any costs, losses or expenses incurred in connection with any appraisal or investigation of the
Company. In furnishing this Presentation, the Company does not undertake or agree to any obligation to provide the recipient with access to any
additional information or to update this Presentation or to correct any inaccuracies in, or omissions from, this Presentation that may become apparent.
This Presentation has been prepared by the Company and all reasonable care has been taken to ensure that the facts stated in the Presentation are true
and accurate in all material respects to the best of the directors’ knowledge, information and belief and that the opinions expressed are fair and
reasonable. No reliance can be placed for any purpose whatsoever on the information contained in this Presentation or on its completeness. Certain
figures noted herein are illustrative projections and are based on a number of assumptions, and no figures should be regarded as a profit forecast.
This Presentation contains forward-looking statements, which are based on BFE current expectations and assumptions and involve known and unknown
risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. It is
believed that the expectations reflected in these statements are reasonable, but they may be affected by a number of variables, which could cause actual
results or trends to differ materially. Each forward-looking statement speaks only as of the date of the particular statement. Except as required by law, the
Company disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to
reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement
is based.
In this presentation, “the Company” and “BFE” refer to Bonanza of Farming and Energy S.A.C. and/or its subsidiaries, unless otherwise indicated or the
context otherwise requires.
Index
1. Market opportunity
2. Business Model
3. Competitive analysis
4. Team and organizational chart
5. Value creation and financial project
6. Start-up plan
7. Proposal to the investor
Market Opportunity: Wind Power
• Peru plans to have 15%
renewables in its energy
matrix by 2030.
• The main regions with a
wind energy potential of
more than 1000 MW in
Peru are Amazonas,
Ancash, Arequipa,
Cajamarca, Ica, La Libertad,
Lambayeque, Lima and
Piura.
• Mainly along the coastline
and the primary mountain
range, there are wind
speeds in the range of 5 to
7.5 m/s, which allow
economically viable use.
Market Opportunity: Wind Power
• A partir de 2019, Perú
posee 372,2 MW de
capacidad eólica instalada.
El parque eólico Wayra I en
Ica con una capacidad
instalada de 132 MW es el
parque eólico más grande
de Perú.
• Wind installation in Peru
has shown significant
growth since 2014. With
ambitious projects under
construction, wind power
will drive Peru's renewable
market in the forecast
period.
Market Opportunity: Sugarcane
• Current global per capita
consumption is around
24kg/person and continues
to grow at 1.5 - 2% per
person per year.
• The wholesale prices of
white and blonde sugar,
sold in the Producers
Market of Lima (Santa
Anita), reached a high level
in March 2020 with S/ 2.31
and S/ 2.27 per kilogram,
respectively.
• Peru is the country that
obtains the best
agricultural yields in the
world in cane of sugar, with
121.8 tons per hectare on
average in 2018.
ASSETS
> 2,000 Ha
with proven wind and
agricultural potential
Eolic Potential
350 ... 500 MW
Cultive of Cane
Project
Operator
Wind Power Plant
Operator
Agroindustrial
$
$
Project Finance
Agricultural
Development
Business model
VALUE CLIENT’s
Energy
Development
Competitive analysis 1of2
• Strength
• First large-scale agro-wind project in Peru.
• Predisposition of the owner of the land (Peasant Community of San Pedro de
Lloc) to sign a property agreement with Bonanza.
• Localitation between two poles cane procesing (Chiclayo and Trujillo).
• Manage practices of precision farming in the peruvian sugar industry the
which it is new for in this industry.
• Weaknesses
• Finding of archaeological remains.
• Insufficient electrical evacuation capacity in SE Guadalupe.
• El Niño and La Niña phenomena affect the region and it requires
attention and consideration of these in implementing the project.
Competitive analysis 2of 2
• Opportunities
• Wind potential on the site (NFC 48% +/- 3%).
• Accessibility to the land by road, water, good wheater for cane.
• Proximity to the electrical interconnection point (17 km).
• Create a decent source of work for the locals.
• Take advantage of desert areas and integrate them into sustainable
agriculture.
• Threats
• The wind measurement campaign has not yet started.
• Not having enough labor for the development of sugar cane cultivation.
• Find archaeological remains that lead to the management of special permits.
• Inflationary and exchange rates.
Team and organizational model
Nicolás Saldaña Ojeda (CEO)
• Mechanical Electrical Engineer and MBA w/20+ years experience developing major project in Peru
• Former Construction Manager for SMEB / MINSUR / PUCAMARCA
• Former Operation Manager for SEPROCAL
Ranulfo Fernández Vílchez (Associate Project)
• Agricultural Engineer and MBA w/30+ years experience in the sectors of Sugarcane Farming and Precision Agriculture
• Former General Manager of A&P SERVI Former
• Former Site Manager of EAI POMALCA SAA
Mario Espinoza Pairazamán (Associate Project)
• Electrical Engineer and MSc in Energy w/5+ years experience in the sectors of new renewable energy projects
• Former Project Manager Wind & Solar in ENERWIND
• Former Operation and Maintenance Supervisor in ENEL GREEN POWER
Organizational Chart
CEO
N. SALDAÑA
ADMINISTRACIÓN
TBD
LEGAL / PERMISSIONS
TBD
DM
R. Fernandez
PM
TBD
DM
M. Espinoza
PM
TBD
PM: Project Manager
DM: Deputy Manager
Value creation and financial project - Eolic
Business Case Hypothesis San Pedro de Lloc I Wind Farm
Investment ► WTG –USD 140.4 mm for 42 ACCIONA 4.0 – 150 (USD 900k per
MW) – Installed capacity 168 MW
► BOP – USD 46.68 mm (USD 299,25k per MW)
► Total Investment – USD 187.083 mm (USD 1,119k per MW)
Income ► Tariff of USD 30.00 per MWh adjusted by inflation
► Capacity Tariff USD 8.00 per MW (20% total capacity)
► NEH P(50) – 4,568 with 98% of WTG availability (712.63 GWh/year)(*)
► PPATerm – 20 years
OpEx
• Profit loss – 0.20% of income
• Full risk – 0.20% of investment
• Franchise – USD 120k per year
► OSINERGMIN fee – 1% of total sales
► Other costs – 10% of total costs
► G&A, BOP mmt, security, utilities, USD 770k yearly
► Year 1 – 20
► Insurance
O&M
20,000k USD per MW
► Leverage of 35% of total project investment
► Debt with average life of 10 years (tenor 17 years at 6% rate)
► 1 Year of construction period + 20 year of operations
► Income Tax rate – 29.5%
► Modified depreciation – 20% each year
► Inflation rate – 3%
► No RECs considered
Other
(*) Wind parameters obtained from an 80m high tower located 12 km away.
8,83%
Project
IRR
8,32
years
Payback
Period
24,68
LCOE
20Y
12,18%
Equity
IRR
Business Case Output – 20 Years
General drawings – Eolic Project
Eolic Project Eolic Turbine
Value creation and financial project - SugarCane
Investment ► Total land 2,300 ha to 1,120 USD/ha
► Effective land 1,656 ha to planting and cultivation
► WC – 7.626 mm USD / IF 13.204 mm USD
► Total Investment – USD 23.406 mm USD
Income ► Tariff of USD 29.40 to 55.36 per bags (50 kg) adjusted by inflation
► Sugar obtained 26,496 to 29,808 ton per annual (range)
► PPATerm – 12 years
OpEx
• Profit loss – 0.20% of income
• Full risk – 0.20% of investment
► Other costs – 10% of total costs
► G&A, Infrastructure facilities, security, utilities, USD 922.151 average annual
► Year 1 – 13
► Insurance
O&M
3.791 mm USD per average annual
► Leverage of 100% of total project investment
► Debt with average life of 10 years (tenor 12 years at 10%
rate)
► 1 Year of construction period + 12 year of operations
► Income Tax rate – 29.5%
► Modified depreciation – 20% each year
► Inflation rate – 4% to 2%
Other
44,84%
Project
IRR
10 years
Payback
Period
42,97
APB**
12Y
61,764 mm
Project
NPV
Business Case Output – 12 Years
General drawing – Sugar cane
Firts part: 760 ha
Second part: 896 ha
Start-up plan
• WC for futher studies: 0.865 mm usd
• To general studies:
• Archeology: 225k usd
• Licences for water wells: 100k usd
• Right to use of land: 60k usd
• To Eolic:
• 250k usd for studies and confirmation of wind potential
• To Sugar:
• 230k usd for studies and confirmation of underground water potential
• WC for Infrastructure: 6.761 mm usd
Proposal to the investor
1. Shareholding up to 60% during 10 years and after that, the investor
must have an exit protocol.
2. The operation will be carried out by the BONANZA team.
3. The investor may finance the project (infrastructure part) in the
form of a loan and not a capital contribution.

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Business case BFE.pdf

  • 1. Proyecto Agro - Energético Business Plan Jun 2022
  • 2. Strictly Private and Confidential - DO NOT DISTRIBUTE Disclaimer: This Presentation and other information which you are given at the time of presentation, in whatever form, do not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any shares in Bonanza of Farming and Energy S.A.C. (BFE), nor shall it or any part of it form the basis of, or be relied upon in connection with, any contract or commitment whatsoever. No part of the contents of this Presentation is to be taken as any form of commitment on the part of the Company to proceed with any transaction, and the right is reserved to terminate any discussions or negotiations with any prospective investors. The distribution of this Presentation in certain jurisdictions may be restricted by law. No action has been taken or will be taken by the Company, by the existing shareholders or by any professional adviser to the Company, that would permit an offer of shares or possession or distribution of this Presentation where action for that purpose is required. Persons into whose possession this Presentation comes should inform themselves about, and observe, any such restrictions. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction. In no circumstances the Company will be responsible for any costs, losses or expenses incurred in connection with any appraisal or investigation of the Company. In furnishing this Presentation, the Company does not undertake or agree to any obligation to provide the recipient with access to any additional information or to update this Presentation or to correct any inaccuracies in, or omissions from, this Presentation that may become apparent. This Presentation has been prepared by the Company and all reasonable care has been taken to ensure that the facts stated in the Presentation are true and accurate in all material respects to the best of the directors’ knowledge, information and belief and that the opinions expressed are fair and reasonable. No reliance can be placed for any purpose whatsoever on the information contained in this Presentation or on its completeness. Certain figures noted herein are illustrative projections and are based on a number of assumptions, and no figures should be regarded as a profit forecast. This Presentation contains forward-looking statements, which are based on BFE current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. It is believed that the expectations reflected in these statements are reasonable, but they may be affected by a number of variables, which could cause actual results or trends to differ materially. Each forward-looking statement speaks only as of the date of the particular statement. Except as required by law, the Company disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. In this presentation, “the Company” and “BFE” refer to Bonanza of Farming and Energy S.A.C. and/or its subsidiaries, unless otherwise indicated or the context otherwise requires.
  • 3. Index 1. Market opportunity 2. Business Model 3. Competitive analysis 4. Team and organizational chart 5. Value creation and financial project 6. Start-up plan 7. Proposal to the investor
  • 4. Market Opportunity: Wind Power • Peru plans to have 15% renewables in its energy matrix by 2030. • The main regions with a wind energy potential of more than 1000 MW in Peru are Amazonas, Ancash, Arequipa, Cajamarca, Ica, La Libertad, Lambayeque, Lima and Piura. • Mainly along the coastline and the primary mountain range, there are wind speeds in the range of 5 to 7.5 m/s, which allow economically viable use.
  • 5. Market Opportunity: Wind Power • A partir de 2019, Perú posee 372,2 MW de capacidad eólica instalada. El parque eólico Wayra I en Ica con una capacidad instalada de 132 MW es el parque eólico más grande de Perú. • Wind installation in Peru has shown significant growth since 2014. With ambitious projects under construction, wind power will drive Peru's renewable market in the forecast period.
  • 6. Market Opportunity: Sugarcane • Current global per capita consumption is around 24kg/person and continues to grow at 1.5 - 2% per person per year. • The wholesale prices of white and blonde sugar, sold in the Producers Market of Lima (Santa Anita), reached a high level in March 2020 with S/ 2.31 and S/ 2.27 per kilogram, respectively. • Peru is the country that obtains the best agricultural yields in the world in cane of sugar, with 121.8 tons per hectare on average in 2018.
  • 7. ASSETS > 2,000 Ha with proven wind and agricultural potential Eolic Potential 350 ... 500 MW Cultive of Cane Project Operator Wind Power Plant Operator Agroindustrial $ $ Project Finance Agricultural Development Business model VALUE CLIENT’s Energy Development
  • 8. Competitive analysis 1of2 • Strength • First large-scale agro-wind project in Peru. • Predisposition of the owner of the land (Peasant Community of San Pedro de Lloc) to sign a property agreement with Bonanza. • Localitation between two poles cane procesing (Chiclayo and Trujillo). • Manage practices of precision farming in the peruvian sugar industry the which it is new for in this industry. • Weaknesses • Finding of archaeological remains. • Insufficient electrical evacuation capacity in SE Guadalupe. • El Niño and La Niña phenomena affect the region and it requires attention and consideration of these in implementing the project.
  • 9. Competitive analysis 2of 2 • Opportunities • Wind potential on the site (NFC 48% +/- 3%). • Accessibility to the land by road, water, good wheater for cane. • Proximity to the electrical interconnection point (17 km). • Create a decent source of work for the locals. • Take advantage of desert areas and integrate them into sustainable agriculture. • Threats • The wind measurement campaign has not yet started. • Not having enough labor for the development of sugar cane cultivation. • Find archaeological remains that lead to the management of special permits. • Inflationary and exchange rates.
  • 10. Team and organizational model Nicolás Saldaña Ojeda (CEO) • Mechanical Electrical Engineer and MBA w/20+ years experience developing major project in Peru • Former Construction Manager for SMEB / MINSUR / PUCAMARCA • Former Operation Manager for SEPROCAL Ranulfo Fernández Vílchez (Associate Project) • Agricultural Engineer and MBA w/30+ years experience in the sectors of Sugarcane Farming and Precision Agriculture • Former General Manager of A&P SERVI Former • Former Site Manager of EAI POMALCA SAA Mario Espinoza Pairazamán (Associate Project) • Electrical Engineer and MSc in Energy w/5+ years experience in the sectors of new renewable energy projects • Former Project Manager Wind & Solar in ENERWIND • Former Operation and Maintenance Supervisor in ENEL GREEN POWER
  • 11. Organizational Chart CEO N. SALDAÑA ADMINISTRACIÓN TBD LEGAL / PERMISSIONS TBD DM R. Fernandez PM TBD DM M. Espinoza PM TBD PM: Project Manager DM: Deputy Manager
  • 12. Value creation and financial project - Eolic Business Case Hypothesis San Pedro de Lloc I Wind Farm Investment ► WTG –USD 140.4 mm for 42 ACCIONA 4.0 – 150 (USD 900k per MW) – Installed capacity 168 MW ► BOP – USD 46.68 mm (USD 299,25k per MW) ► Total Investment – USD 187.083 mm (USD 1,119k per MW) Income ► Tariff of USD 30.00 per MWh adjusted by inflation ► Capacity Tariff USD 8.00 per MW (20% total capacity) ► NEH P(50) – 4,568 with 98% of WTG availability (712.63 GWh/year)(*) ► PPATerm – 20 years OpEx • Profit loss – 0.20% of income • Full risk – 0.20% of investment • Franchise – USD 120k per year ► OSINERGMIN fee – 1% of total sales ► Other costs – 10% of total costs ► G&A, BOP mmt, security, utilities, USD 770k yearly ► Year 1 – 20 ► Insurance O&M 20,000k USD per MW ► Leverage of 35% of total project investment ► Debt with average life of 10 years (tenor 17 years at 6% rate) ► 1 Year of construction period + 20 year of operations ► Income Tax rate – 29.5% ► Modified depreciation – 20% each year ► Inflation rate – 3% ► No RECs considered Other (*) Wind parameters obtained from an 80m high tower located 12 km away. 8,83% Project IRR 8,32 years Payback Period 24,68 LCOE 20Y 12,18% Equity IRR Business Case Output – 20 Years
  • 13. General drawings – Eolic Project Eolic Project Eolic Turbine
  • 14. Value creation and financial project - SugarCane Investment ► Total land 2,300 ha to 1,120 USD/ha ► Effective land 1,656 ha to planting and cultivation ► WC – 7.626 mm USD / IF 13.204 mm USD ► Total Investment – USD 23.406 mm USD Income ► Tariff of USD 29.40 to 55.36 per bags (50 kg) adjusted by inflation ► Sugar obtained 26,496 to 29,808 ton per annual (range) ► PPATerm – 12 years OpEx • Profit loss – 0.20% of income • Full risk – 0.20% of investment ► Other costs – 10% of total costs ► G&A, Infrastructure facilities, security, utilities, USD 922.151 average annual ► Year 1 – 13 ► Insurance O&M 3.791 mm USD per average annual ► Leverage of 100% of total project investment ► Debt with average life of 10 years (tenor 12 years at 10% rate) ► 1 Year of construction period + 12 year of operations ► Income Tax rate – 29.5% ► Modified depreciation – 20% each year ► Inflation rate – 4% to 2% Other 44,84% Project IRR 10 years Payback Period 42,97 APB** 12Y 61,764 mm Project NPV Business Case Output – 12 Years
  • 15. General drawing – Sugar cane Firts part: 760 ha Second part: 896 ha
  • 16. Start-up plan • WC for futher studies: 0.865 mm usd • To general studies: • Archeology: 225k usd • Licences for water wells: 100k usd • Right to use of land: 60k usd • To Eolic: • 250k usd for studies and confirmation of wind potential • To Sugar: • 230k usd for studies and confirmation of underground water potential • WC for Infrastructure: 6.761 mm usd
  • 17. Proposal to the investor 1. Shareholding up to 60% during 10 years and after that, the investor must have an exit protocol. 2. The operation will be carried out by the BONANZA team. 3. The investor may finance the project (infrastructure part) in the form of a loan and not a capital contribution.