Terraqua Barranca Business plan graphs and "numbers."

1. Terraqua Barranca Business Plan A
Graphical Presentation
September 18, 2011
This has been prepared as an addendum to the Terraqua Business Plan.

2. The Business Model in Graphs
This addendum to the Terraqua Business Plan is prepared for those
persons having an interest in digging a little deeper into the
financial model underlying the Terraqua Business Plan, but lacking
the time to do so. The presentation has been prepared simply by
copying and pasting into a PowerPoint format graphs that already
exist in the underlying Terraqua Barranca business model Excel
Spreadsheet
Those electing to view this PowerPoint are urged also to read the
business plan itself, as well as the two documents: The Terraqua
System and the Terraqua Barranca Business Model – that have been
prepared to accompany the plan.
Suggestions as to graphs that might also be added are welcome.

3. Terraqua Barranca Capital Structure
Working Loan,
$ 1,666,667
Cash Invested,
$8,123,775
Term Loan,
$ 12,313,372
An approximate 60/40 debt/equity ratio

4. Terraqua Barranca Capital Allocations
$ 166,667
$ 333,333
$ 300,000
$ 165,000
$ 50,000
Tissue Culture Lab - AD and Stevia
$ 50,000 $ 1,166,667
Basic 18.8 l/s WWT Unit (including fish & worms)
$ 510,000 Influent Pipeline & Hydraulics
Roads
$ 1,227,525
Security
Electricity and Backup Power Units
Phase II Pilot Project - Santa Catalina
Building design and construction
$ 1,080,000 Fertigation Infrastructure
Fertigation Infrastructure (station/overhead facilities)
$ 480,000 Farm Infrastructure & Farm Rolling Stock
$ 10,264,872 Non-Farm Rolling Stock
$ 800,000 Extraction Units
Kenaf Equipment, Press and Infrastructure
Miscellaneous Equipment + Spare Parts
$ 300,000 Closing Costs
Bridge Financing
$ 2,060,000
Preliminary Expenses
Initial inventory
Initial accounts receivable
Initial operations, admin & sales costs
$ 666,000 Labeling begins with the top center ($165,000
$ 705,000
for Tissue Culture) and continues around
sequentially to the right. For
$ 743,750 $ 550,000 instance, $295,000 is budgeted for roads.
$ 240,000
$ 295,000

5. Terraqua Barranca Year 1. Operating Cost Structure
Production Labor, $39,634 Production Costs, $39,634
Raw Material, $1,471
Sales, marketing, &
distribution, $1,501
R&D/Quality Assurance &
Prelim
Expenditures, $28,003
General &
Admin., $325,247
Depreciation, $788,564
Year 1, the Construction Year – but beginning operating on a number of
fronts. Note absence of raw materials costs and disproportionately high
relative costs for G&A and Depreciation, in particular.

6. Terraqua Barranca Year 1. Cost Distribution
$450,000
$400,000
$350,000
$300,000
$250,000
$200,000
$150,000
$100,000
$50,000
$0
Mon01 Mon02 Mon03 Mon04 Mon05 Mon06 Mon07 Mon08 Mon09 Mon10 Mon11 Mon12
Debt Service Depreciation
General & Admin. R&D/Quality Assurance & Prelim Expenditures
Sales, marketing, & distribution Production Costs
Production Labor Raw Material
Monthly Operating Costs for Year 1 – the construction year – showing
relative distribution across categories. Note that in December, with a big
jump in production labor and production costs, “output” is beginning to
occur, as are sales of product.

7. Terraqua Barranca Year 2 Operating Cost Structure
Taxes, $1,757,752 Raw Material, $3,051,822
Debt Service, $2,172,745 Production
Labor, $1,299,248
Production
Costs, $1,299,248
Depreciation, $941,560
Sales, marketing, &
distribution, $857,078
General &
Admin., $1,754,552 R&D/Quality Assurance &
Prelim
Expenditures, $496,181
Production underway. Note the relatively high debt service, G&A and
depreciation costs. Taxes, as stated, probably do not take advantage of
tax holidays that should be available during this early phase.

8. Terraqua Barranca Year 2 Cost Distribution
$1,400,000
$1,200,000
$1,000,000
$800,000
$600,000
$400,000
$200,000
$0
Mon01 Mon02 Mon03 Mon04 Mon05 Mon06 Mon07 Mon08 Mon09 Mon10 Mon11 Mon12
Debt Service Depreciation
General & Admin. R&D/Quality Assurance & Prelim Expenditures
Sales, marketing, & distribution Production Costs
Production Labor Raw Material
Production underway. Note the steep increase in Raw Materials costs
during the middle of he year.

9. Terraqua Barranca Year 5 Operating Cost Structure
Taxes, $6,617,501
Raw Material, $7,697,307
Debt Service, $2,890,619
Depreciation, $1,334,297 Production
Labor, $1,961,243
General &
Admin., $2,361,201 Production
Costs, $1,961,243
R&D/Quality Assurance &
Prelim
Expenditures, $698,250
Sales, marketing, &
distribution, $1,800,244
A relatively mature business now. Note that taxes and raw materials
occupy more than 50% of depicted costs. Note relative shrinking of debt
service and depreciation – in particular.

10. Terraqua Barranca 5-Year Operating Cost Distribution
$30,000,000
$25,000,000
$20,000,000
$15,000,000
$10,000,000
$5,000,000
$0
2012 2013 2014 2015 2016
Taxes Debt Service Depreciation
General & Admin. R&D/Quality Assurance & Prelim Expenditures Sales, marketing, & distribution
Production Costs Production Labor Raw Material
A full, 5-year perspective on Operating Costs showing distribution and
relative amounts, year to year.

11. Terraqua Barranca Fixed versus Variable Cost
$25,000,000
Structure
$20,000,000
$15,000,000
$10,000,000
$5,000,000
$0
2012 2013 2014 2015 2016
Total Variable Costs Total Fixed Costs
Predictable relative increase in Variable Costs (vs Fixed Costs) as the
project matures.

12. Terraqua Barranca Year 2. Production
800.00
(tonnes)
700.00
600.00
500.00
400.00
300.00
200.00
100.00
0.00
Mon01 Mon02 Mon03 Mon04 Mon05 Mon06 Mon07 Mon08 Mon09 Mon10 Mon11 Mon12
Engineered Board & Lumber Powder - Oil Adsorbent Seeds Aquameal Tilapia
Aquameal is a high protein product produced by combining harvested
duckweed and aquatic worms – all product is fed, locally to tilapia (and
subsequently barramundi and other fish produced on site

13. Terraqua Barranca 5-Year Production
(tonnes)
14,000
12,000
10,000
8,000
6,000
4,000
2,000
0
2012 2013 2014 2015 2016
Other Extractives Stevia Engineered Board & Lumber Seeds Powder - Oil Adsorbent Tilapia Aquameal
Note the growth in production of engineered board and lumber on a
weight basis. Plant extract production barely registers as to tonnage.

14. Terraqua Barranca Year 2. Sales
(Dollars)
$ 2,500,000
$ 2,000,000
$ 1,500,000
$ 1,000,000
$ 500,000
$0
Mon01 Mon02 Mon03 Mon04 Mon05 Mon06 Mon07 Mon08 Mon09 Mon10 Mon11 Mon12
Other Extractives Stevia Engineered Board & Lumber Seeds Powder - Oil Adsorbent Tilapia
Growth in month-to-month sales during year two is instructive. Note that
the lignocellulosic product sales are the last to “take off.” This reflects
relative “ease of manufacturing.”

15. Terraqua Barranca Year 5 Sales
(Dollars)
$ 4,000,000
$ 3,500,000
$ 3,000,000
$ 2,500,000
$ 2,000,000
$ 1,500,000
$ 1,000,000
$ 500,000
$0
Mon01 Mon02 Mon03 Mon04 Mon05 Mon06 Mon07 Mon08 Mon09 Mon10 Mon11 Mon12
Other Extractives Stevia Engineered Board & Lumber Seeds Powder - Oil Adsorbent Tilapia
Year 5 month-to-month sales appear relatively stable, with production
efficiency gains accounting for the continuing increase in industrial sales.
.

16. Terraqua Barranca 5-Year Sales
(Dollars)
$ 60,000,000
$ 50,000,000
$ 40,000,000
$ 30,000,000
$ 20,000,000
$ 10,000,000
$0
Tilapia Powder - Oil Seeds Engineered Board & Stevia Other Extractives
Adsorbent Lumber
2016 2015 2014 2013 2012
This format shows the annual distribution of sales by product category in
each column. It also allows a quick appreciation of the relative
importance of tilapia (and, eventually, other fish).

17. Terraqua Barranca Sales Distribution 2013
Tilapia
18.69%
Powder - Oil Adsorbent
48.71%
15.15%
Seeds
Engineered Board & Lumber
8.19% Stevia
2.57% 6.70%
Other Extractives
Another approach to looking Terraqua Barranca Sales Distribution 2016
at the relative importance of
product lines during the
early, immediately post-
Tilapia
commissioning phase in 19.06%
35.05%
Powder - Oil Adsorbent
2013, versus the relatively 13.51%
more mature circumstance in 20.59% 10.35%
Seeds
2016. Note that fish fillet Engineered Board & Lumber
sales have gone down to 35% 1.44%
Stevia
of total income in 2016. Other Extractives

18. Terraqua Barranca Labor Summary
250
200
Total Fixed Cost Labor
150 Total Variable Cost Labor
100
50
0
1 2 3 4 5
The Company effectively Terraqua Barranca Labor Summary
reaches “full employment”
during year 2013, with the 250
balance between Fixed and 200
Variable Cost Labor, as well Total G&A Labor
150 Total Manufacturing Labor
as Manufacturing Labor and
G&A labor thereafter 100
remaining fairly constant 50
through 2016. 0
2012 2013 2014 2015 2016

19. Terraqua Barranca After Tax Net Income
14
12
10
8
6
4
2
0
2012 2013 2014 2015 2016
-2
-4
($ millions)
The Bottom Line . . . . Note that expansion into other areas of
Barranca Province are not depicted in the attendant plan, or the result
depicted here. Logically, the slope of the increase in profits should
remain fairly constant through 2016

20. Terraqua Barranca Year 1 Cash Flow
$ 8,000,000
$ 7,000,000
$ 6,000,000
$ 5,000,000
$ 4,000,000
$ 3,000,000
$ 2,000,000
$ 1,000,000
$0
Mon
Mon
Mon
Mon
Mon
Mon
Mon
Mon
Mon
Mon
Mon
Mon
12
01
02
03
04
05
06
07
08
09
10
11
First year cash in hand . . . prudent

21. Terr. Barranca 5-Year Cash Flow
($ millions)
16
14
12
10
8
6
4
2
0
2012 2013 2014 2015 2016
Five year cash in hand . . . exhilarating

22. Cash &
Terraqua Barranca short-term
Year 1. Assets investments, $
Other 1,905,452 Inventories, $
Assets, $ 0 60
Accounts
receivable, $
20
Plant &
Equipment, $
14,043,359
Short-term
Terraqua Barranca debt and notes
Year 1. Liabilities payable, $
1,579,741
Classic Year One Balance Sheet Accounts
– no receivables, accounts payable, $
35,313
payable or inventories.
Equity, $
6,225,245
Long Term
Debt, $
8,108,591

23. Cash &
Terraqua Barranca short-term
Year 2. Assets investments, $
2,265,923
Other
Assets, $ 0 Accounts
Classic Year Two Balance Sheet receivable, $
2,203,670
– receivables, payables and Inventories, $
inventories becoming apparent 190,471
as production ramps up
Plant &
Equipment, $
18,222,405
Short-term
Terraqua Barranca debt and notes
Year 2. Liabilities payable, $
Accounts
1,197,873
payable, $
461,640
Equity, $
8,963,343
Long Term
Debt, $
12,259,613

24. Terraqua Barranca
Other
Year 5 Assets Assets, $ 0
Cash &
short-term
investments, $
14,703,396
Plant &
Equipment, $
21,766,523
Accounts
receivable, $
3,449,780
Inventories, $
2,279,757
Short-term
Terraqua Barranca debt and notes Accounts
Year 5. Liabilities payable, -$ payable, $
606,125 2,666,356
Classic Year Five Balance Sheet
for a successful company – debt
way down, cash and retained Long Term
Debt, $
earnings (equity) way up. 10,162,071
Inventories creeping - now
close to a par with payables and Equity, $
receivables. 29,977,153

25. Terraqua Barranca Current and Quick Ratios
25
20
15
10
5
0
2012 2013 2014 2015 2016
Current ratio Quick ratio
Two useful Liquidity indicators. The current ratio is current assets divided
by current liabilities. The quick ratio is cash and receivables divided by
current liabilities. Both ratios follow a healthy trend.

26. Terraqua Barranca Profit Ratios
2
1.8
1.6
1.4
1.2
1
0.8
0.6
0.4
0.2
0
2012 2013 2014 2015 2016
Gross margin Operating margin Profit margin on total sales
Return on assets Return on equity
Profit Ratios provide good indicators of system profitability and trends in
that direction. The return on equity indicator simply reflects the model’s
decision to sequester profits in the “retained earnings category.” In
practice, these will be distributed as dividends to stakeholders.

27. Terraqua Barranca Sales to Fixed Assets
2
1.8
1.6
1.4
1.2
1
0.8
0.6
0.4
0.2
0
2012 2013 2014 2015 2016
The Sales to Fixed Assets ratio (Total Sales divided by Fixed Assets)
provides a good indicator of fixed asset “leverage.” The trend demonstrated
here is a good one.

28. Terraqua Barranca Debt Ratios
1.6
1.4
1.2
1
0.8
0.6
0.4
0.2
0
2012 2013 2014 2015 2016
Debt to total assets Debt to total capitalization Debt to equity
While the project has reasonable leverage at inception, the strong downward
trend for all debt ratios is healthy. The project will be well positioned, five
years hence, to attract considerably more debt for expansion purposes.

29. Terraqua Barranca Efficiency Ratios
0.9
0.7
0.5
0.3
0.1
2012 2013 2014 2015 2016
-0.1
-0.3
-0.5
Production Sales, Marketing & Distribution R&D/Quality Assurance General & Administration
Efficiency ratios show a healthy downward trend – albeit only marginally so.
This suggests an assumption of no managerial or technological
breakthroughs that might increase efficiencies dramatically. This is, we
believe a prudent assumption.

30. Terraqua Barranca Asset Turnover
1.4
1.2
1
0.8
0.6
0.4
0.2
0
2012 2013 2014 2015 2016
Asset turnover, which is Total Sales divided by Total Assets shows a decline
after 2014 because of retained earnings.

31. Terraqua Barranca Frozen Tilapia Fillets
Break Even Price ($/ton)
$8,000
$7,000
$6,000
$5,000
$4,000
$3,000
$2,000
$1,000
$0
2012 2013 2014 2015 2016
Break Even Price Target Price
Terraqua Barranca Frozen Tilapia Filets
Break Even Volume (tons/yr)
In the latter half of
2013, the profitability of 2500
growing and processing 2000
Tilapia fish becomes
1500
immense.
1000
500
0
2012 2013 2014 2015 2016
Break Even Volume Target Volume

32. Terraqua Barranca Other Extractives
Break Even Price ($/ton)
$40,000
$35,000
$30,000
$25,000
$20,000
$15,000
$10,000
$5,000
$0
2012 2013 2014 2015 2016
Break Even Price Target Price
Terraqua Barranca Other Extractives
Break Even Volume (tons/yr)
250
Use of fertigation and
200 onsite processing with
150 most common extractive
crops provides excellent
100
margins.
50
0
2012 2013 2014 2015 2016
Break Even Volume Target Volume

33. Terraqua Barranca Powdered Kenaf Oil Adsorbent
Break Even Price ($/ton)
$3,000
$2,500
$2,000
$1,500
$1,000
$500
$0
2012 2013 2014 2015 2016
Break Even Price Target Price
Terraqua Barranca Powdered Kenaf Oil Adsorbent
Break Even Volume (tons/yr)
As with all of the products
selected for production in 1800
1600
the Terraqua Barranca 1400
project, margins are 1200
extremely favorable 1000
800
600
400
200
0
1 2 3 4 5
Break Even Volume Target Volume

34. Terraqua Barranca Kenaf Seeds
Break Even Price ($/ton)
$9,000
$8,000
$7,000
$6,000
$5,000
$4,000
$3,000
$2,000
$1,000
$0
2012 2013 2014 2015 2016
Break Even Price Target Price
Terraqua Barranca Kenaf Seeds
Break Even Volume (tons/yr)
80
As the only major kenaf 70
seed producer in the 60
Southern Hemisphere, the 50
Company expect to enjoy 40
30
robust sales.
20
10
0
2012 2013 2014 2015 2016
Break Even Volume Target Volume

35. Terraqua Barranca Engineered Board & Lumber
Break Even Price ($/ton)
$1,600
$1,400
$1,200
$1,000
$800
$600
$400
$200
$0
2012 2013 2014 2015 2016
Break Even Price Target Price
Terraqua Barranca Engineered Board & Lumber
Break Even Volume (tons/yr)
With favorably priced high
6000 quality lumber almost
5000 non-existent in the
4000 Peruvian coastal
3000 market, there is room for
2000
creative pricing with this
product.
1000
0
2012 2013 2014 2015 2016
Break Even Volume Target Volume

36. Terraqua Barranca Stevia Extract
Break Even Price ($/ton)
$300,000
$250,000
$200,000
$150,000
$100,000
$50,000
$0
2012 2013 2014 2015 2016
Break Even Price Target Price
With the global market for Terraqua Barranca Stevia Extract
stevia exploding, and existing Break Even Volume (tons/yr)
margins extremely high, the 80
Company believes it has 70
60
excellent prospects to work 50
with several major grocery 40
retailers (Wholefoods and 30
20
HEB) to develop branded 10
products. 0
2012 2013 2014 2015 2016
Break Even Volume Target Volume

37. Terraqua Barranca Accounts Receivable
$ 4,000,000
$ 3,500,000
$ 3,000,000
$ 2,500,000
$ 2,000,000
$ 1,500,000
$ 1,000,000
$ 500,000
$0
Year 1
Year 2
Year 3
Year 4
Year 5
Accounts receivable shows healthy growth, reflecting a continuing growth
in demand for the company’s products.

38. Terraqua Barranca Finished Inventories
$ 2,500,000
$ 2,000,000
$ 1,500,000
$ 1,000,000
$ 500,000
$0
Year 1
Year 2
Year 3
Year 4
Year 5
Finished Inventories shows healthy growth, reflecting a continuing growth
in demand for all the company’s signature products.

39. Terraqua Barranca Wastewater Treated
(MGDs)
6.00
5.00
4.00
3.00
2.00
1.00
0.00
Year 1
Year 2
Year 3
Year 4
Year 5
The Company projects reasonably flat supply of wastewater until such time
as the new University/Hospital complex has been completed in Eastern
Barranca.

40. Terraqua Barranca Capital Spending
$ 3,500,000
$ 3,000,000
$ 2,500,000
$ 2,000,000
$ 1,500,000
$ 1,000,000
$ 500,000
$0
Year 1
Year 2
Year 3
Year 4
Year 5
Capital spending is heavily skewed towards years one and two. The
Company projects that a SNIPs process will finance the infrastructure for
the new University/Hospital complex WWT system in Year 4. Hence no
extraordinary capital outlays are projected for that year

41. Terraqua Barranca Outstanding Debt
$16,000,000
$14,000,000
$12,000,000
$10,000,000
$8,000,000
$6,000,000
$4,000,000
$2,000,000
$0
Year 1
Year 2
Year 3
Year 4
Year 5
Debt shows predictable growth during the first 2 years of the endeavor, and
hence a steady, very healthy decline.

42. Terraqua Barranca Special Project and R&D Spending
$90,000
$80,000
$70,000
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000
$0
Year 1
Year 2
Year 3
Year 4
Year 5
Special Projects and R&D spending is targeted at around $70,000 per month.
This is adequate for site-specific developments “within” the larger Terraqua
framework. Major R&D remains a province of the parent
companies, Terraqua, Peru and Agriquatics.

43. Terraqua Barranca Frozen Tilapia Fillet Sales
$1,200,000
$1,000,000
$800,000
$600,000
$400,000
$200,000
$0
Year 1
Year 2
Year 3
Year 4
Year 5
Tilapia fillet sales represent around 40% of Company sales. Increases
through Year 3 demonstrate construction and a gradual optimization of
production and associated processes. Thereafter, “flat sales” for years 4
and 5 reflect “no increase in capacity” during that period.

44. Terraqua Barranca Kenaf Fiber Sales
$400,000
$350,000
$300,000
$250,000
$200,000
$150,000
$100,000
$50,000
$0
Year 1
Year 2
Year 3
Year 4
Year 5
Increases in Year 5 kenaf fiber sales represent an assumption that kenaf
fibers will be incorporated into SIP production, sales of which will be driven
by an increase in sales of domes to the Peruvian public.

45. Terraqua Barranca Kenaf Seed Sales
$300,000
$250,000
$200,000
$150,000
$100,000
$50,000
$0
Year 1
Year 2
Year 3
Year 4
Year 5
Sales of kenaf seeds fit a tiny, window immediately following the crop harvest
cleaning and packaging. Exports to all parts of the world are anticipated.

46. Terraqua Barranca Engineered Lumber and Board
Sales
$900,000
$800,000
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$0
Year 1
Year 2
Year 3
Year 4
Year 5
Increases in Year 5 sales represent an assumption that SIP production and
strut production increase significantly in year 5 – sales of which will be
driven by an increase in sales of domes to the Peruvian public.

47. Terraqua Barranca Stevia Sales
$500,000
$450,000
$400,000
$350,000
$300,000
$250,000
$200,000
$150,000
$100,000
$50,000
$0
Year 1
Year 2
Year 3
Year 4
Year 5
The company expects continuing increase in both the volume and price of
Stevia sales – driven, in part, by relationships now being formed with grocery
retailer Wholefoods Market and HEB in Texas.

48. Terraqua Barranca Other Extractives Sales
$800,000
$700,000
$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$0
Year 1
Year 2
Year 3
Year 4
Year 5
The company expects to develop a strong comparative advantage in
production, processing and sale of non-stevia plant extracts. TJVA provides
a mechanism by which to continue on a steep growth path for the
foreseeable future.

49. Terraqua Barranca Sales
$4,000,000
$3,500,000
$3,000,000
Dollars in Sales
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$0
Year
Other Extractives Stevia Engineered Board & Lumber Seeds Powder - Oil Adsorbent Tilapia Aquameal
Combined total sales for the Company through Year 5 shows healthy growth
in all sectors – notably sales of Engineered Board & Lumber. The latter will
be driven primarily by internal sales within the Terraqua “family,” but it also
represents an increase in sale of dome “kits” to outside buyers in years 4
and 5.

50. Terraqua Barranca Share Prices
$14.000
$12.000
$10.000
$8.000
$6.000
$4.000
$2.000
$0.000
2012 2013 2014 2015 2016 2017
Share prices reflect a “3x” after tax earnings for 2014 – 2016. The 2017
price reflects a “probable market valuation” in the event the company
should have an opportunity to do an IPO. In reality this is unlikely to
happen. The Company intends remaining a “cash cow” for the
foreseeable future.