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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
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
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
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.