Production Capacity
Wheat Flour and Wheat Bran

Production Capacity of Wheat Flour and Wheat Bran The operational activity of the project has already begun, and it is expected to work for 12 months throughout Year 0.

This activity will be mainly aimed at the grinding of wheat, in order to obtain the wheat flour and the meal of wheat flour.

The raw material to be consumed in production will originate in third countries, since there is no national supply of wheat to supply the project and can be imported from the European Union, Turkey, USA, Russia or other countries depending on the qualities and the best prices on the market.

The nominal production capacity of the project is 269 tonnes of wheat flour per shift (8 hours) and 115 tonnes of wheat flour per shift (8 hours). It is estimated that the nominal production of year, and increased to 70% in Year 1, 75% in Year 2, 80% in Year 3 and 90% in Year 4 (and subsequent years) of industrial project.

In addition to these assumptions, the company is expected to work one shift in Year 0, one shift in Year 1, 2.5 in Year 2, and 3 shift in production from Year 3.

The business projections are based on the sale of wheat flour and wheat flour meal, and no other sales proceeds from other products or commodities were estimated.

The project will be equipped with qualified technicians, as well as a careful management of the possibilities of industrial diversification, promoting wealth.

The stoppage of the unit for the purpose of industrial maintenance will take place during periods of lesser activity (dead times), in order to avoid production losses and profitability of the business.

EXPLORATION PLAN

Product prices For the purpose of constructing the projections for the value of annual production, the prices set out below have been taken into account, equivalent to USD 500,81 / t. of wheat flour, and USD 227.64 / t. of wheat bran, at the reference exchange rate considered in the assumptions.

The determination of the revenue generated by the project activity is dependent on the sales prices, which, for reasons of market and prudence, we considered unchanged throughout the projection period, being also dependent on the quantities to be produced and marketed. It should also be noted that the sales prices that were identified earlier and served as a basis for the present study took into account the prices charged
currently by the market.

The quantities to be produced and already identified previously are also characterized by cautious and realistic forecasts.

Turnover projections
Previously, it should be noted that in the field of stocks of raw materials, subsidiaries and consumer goods, and finished products, we worked with a 60-day and 7-day stockholding, in the light of current circumstances, ensuring
thus ensuring continuity of production and supplying the market.

This assumption was considered, due to the characteristics of the products in question, and the company could adopt a different storage policy. In any case, it will be counterproductive to extend it to very long terms, since there is a need to maintain a balance between market responsiveness and cost level. It is concluded from projections that the value of annual production , in year 0 it amounts to more than 16 million North American Dollars, in year 1 to grow to 49 Million North American Dollars, being able to reach values ​​superior to 132 million North American Dollars from Year 4 of the project.

Direct Cost of Raw Materials and Subsidiaries Consumed

Industria

In this case, we must consider all the costs directly associated with production, ie the cost of purchasing wheat, the packaging, and the cost of printing the brand, incurred during the development of processing operations and

Packing

finishing and packaging, taking into account the reference values, provided by the promoters, which are detailed in the table below. Consumption was calculated based on the assumptions detailed in the following table, as we can see:

Supplies and Services of Third Parties

The implementation of the project will also entail other costs,
costs of supplies and services of third parties. The structure of costs with the supplies and services of third parties, is presented in the following table:

Costs
with Staff

Personnel Charges

 

number of workers needed to achieve the objectives of the project,
varies according to the number of shifts in activity, and in Year 0
work is planned for one shift, which will occupy a total of 99
workers, and from Year 3, the 3-shift work will occupy a total of 190 workers.
Personnel costs, including salaries, social benefits in force (Food and Transport Subsidy) and their annual costs, are reflected in the following table: With this project, we have created a total of 99 jobs in the Year 0,
It is important to note that the candidates with the highest level of training and experience in the sector are the preferred candidates. We are facing salaries, with annual charges based on 14 months, and with the forecast of 11% for social charges; the overall burden on staff
Year 3, the amount of USD 2,528,983, and the average salary will be around USD 11,392 / year, per worker, in the year of cruising. The number of jobs to be allocated to the project will naturally evolve in line with market requirements and production fluctuations.

Depreciation and amortization

 

Amortization of intangible and tangible assets, to be borne by the
implementation of the project, are as follows, using as a method of calculation the constant quotas and based on the rates contained in the legislation in force; for the purpose of amortization of depreciation, year 1 was considered as the first full year of amortization of capital goods.

Results report

 

In view of the business management model, the expected investments, the financing structure, as well as the already projected operating income and costs, we can obtain the operating account of the project, and consequently, the net results, the contribution to the OGE in the form of taxes, and freed resources and other indicators of profitability.

The project offers a security considered good, with positive results from year 0, which over time assume a growing trend. The net assets - net results + amortizations + provisions - obtained in year 0, are positive, and in subsequent years they assume a growth trajectory, reaching even more relevant levels.

Cash Flows are a decisive element in the financial analysis, since the management of these funds from a treasury perspective is a key factor for decision-making
allowing for self - financing and the distribution of dividends.

Let us look at the determination of the annual net profit and the value of the freed funds, as follows:

Evolution of the annual Treasury balances of the project
As we can see, EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization), which means "Earnings Before Interest, Taxes,
depreciation and amortization ", in Portuguese, is positive in any of the project years, although it is low in Year 0, as is understandable, and shows an increasing annual evolution over the projection period, a symptom of the project's capacity for the liberation of means.

Map of Cash - Flows
In view of the flows included in the operating accounts, the annual cash flows are as follows, and the receipts are processed within 15 days of the date of invoicing, and payments are processed within 30 days.

Operating cash flow was negative in year 0, and positive from year one (Year 1), reaching fairly comfortable levels from here, reflecting the economic and financial health of the wheat flour and bran production project , Now that