Business Plan:Project funding for environmental Project(Ukraine)

ProjectSummery

Currently, the company is engaged in collection of plastic waste on the territory of Ukraine and their processing into PET flakes. Company carries out wholesale trade of industrial chemicals and the company has its own area for the location of production (1.47 hectares of land in the city of Kirovograd, Ukraine), which has a warehouse, production and administrative offices with total area of

3800 sq.m. The company now produces 2.400 tons of PET flakes per year.

The companyintendstoincreasethe capacityfor the collectionandrecyclingofplastic wastefrom2,400tonnesto14,600tonnesper year.It isplannedsale of productsderivedfromthe collectedwastetocustomers inthe amountof10,800tonsper year.

1/3offlakesproducedamountwillbe usedfor the productionof sheetandthermoforming,the mainconsumers- are manufacturersof confectioneryproducts,foodproducts,manufacturersof industrialproducts,textile manufacturers.

2/3flakesamount producedare soldtoother manufacturersandareusedfor theproductionofPETbottles,PETsheet,PETfiber.

Project Location

The project is located at Kirovograd, Ukraine.

TheBusiness

BusinessStructure:PrivateCompany

BusinessLocation:Kirovograd, Ukraine.

Date Of Incorporation:2005

RelevantExperience: DirectorGeneral of the company has15years ofexperiencecoveringvirtuallyall aspects ofpolymer raw materials industry. Heco-founded several successful companies in theplastics industry.

DeputyDirector, Chartered Engineerwith over20years experiencein theplastics processingindustryand is aspecialist in the field of clearingand processing.

ChiefFinancialDirector, hasmorethan 10years ofexperiencein financial management ofenterprises wereemployed bymorethan 5 public and private companies.

TheMarket

Target Market:

RPET Flake (PET flakes) total market demand for PET flakes in Europe in more than $ 1.7 billion a year. The main consumers of RPET flakes manufacturers of containers and preforms - about 43% of all manufactured flakes.

Share of fibers to be made of recycled PET flakes fell to 39 percent. The share of the use of flakes as raw materials for re-manufacturing of bottles is up to 12% and has a tendency to annual growth of 4-7%.

Current prices for primary pet is $ 1.750 -$ 1.800 per metric ton and $ 1.400 - $1.500 per ton of RPET flakes. The spread between the two traditionally maintained at about $ 300 per metric ton.

The main consumers of the products: confectionery manufacturers, food manufacturers, manufacturers of industrial products, textile manufacturers. The company currently has a contract of intent to acquire all of the output.

TheFinances

Total Financing Amount: 5 540 000 €

Type of Loan:Debt

Interest Rate: 3%

Time Period: 7 years

Use of Fund:Construction, Development & Purchase

Cash available: $ 200 000.00

Calculationof the project investment costs

Costitem / Total
€ / Borrowed funds
€ / Owncontributionof
the company
€
Building / 1 732 000,00 / 1 732 000,00
Lineforprocessingand purification ofPET flakes / 2 532 600,00 / 2 532 600,00
Theline fortheproduction ofsheets forthermoforming / 1 272 600,00 / 1 272 600,00
Thermoformingline / 579 600,00 / 579 600,00
Workingcapital / 500 000,00 / 500 000,00
Reconstruction ofthebuilding / 650 000,00 / 650 000,00
TOTAL, € / 7 266 800,00 / 5 534 800,00 / 1 732 000,00
TOTAL, % / 100,00% / 76,17% / 23,83%

Thetotalcostoftheproject:€7.266.800,0

Projected statement of cash flows.

Period / Month / 1 year / 2 year / 3 year / 4 year / 5 year
1 / 2 / 3 / 4 / 5 / 6 / 7 / 8 / 9 / 10 / 11 / 12
12800900
Earnings( $) / 2875000 / 108000 108000 108000 108000 2342600 200000 900900 2430500 1303300 1158300 / 1158300 / 15444000 15444000 15444000 15444000
Revenuesfromsales / 0 / 900900 / 1158300 / 1158300 / 1158300 / 1158300 / 5534100 / 15444000 / 15444000 / 15444000 / 15444000
Investments / 2875000 / 108000 / 108000 / 108000 / 108000 / 2342600 / 200000 / 1272200 / 145000 / 7266800
Payments( $) / 2875700 / 108700 108700 108700 108700 2343300 208047 657709 2070036 942836 797836 / 797836 / 10678376 / 9269554 9270354 9270354 9270354
Fixedcosts / 700 / 700 / 700 / 700 / 700 / 700 / 29642 / 29642 / 29692 / 29692 / 29692 / 29692 / 182252 / 358605 / 359605 / 359605 / 359605
Variablecosts / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 448979 / 577257 / 577257 / 577257 / 577257 / 2758005 / 7589736 / 7589736 / 7589736 / 7589736
Paymentto the statebudget / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 89544 / 95444 / 95444 / 95444 / 95444 / 471319 / 1321213 / 1321013 / 1321013 / 1321013
Profitstax / -21595 / 89544 / 95444 / 95444 / 95444 / 95444 / 449724 / 1321213 / 1321013 / 1321013 / 1321013
Creditsalesof valueaddedtax / 99000 / 150150 / 193050 / 193050 / 193050 / 193050 / 1021350 / 2574000 / 2574000 / 2574000 / 2574000
Debitturnoverofvalueaddedtax / 0 / 71240 / 91595 / 91595 / 91595 / 91595 / 437620 / 1221264 / 1221264 / 1221264 / 1221264
VATpaymentsto thebudget / 99000 / 78910 / 101455 / 101455 / 101455 / 101455 / 583730 / 1352736 / 1352736 / 1352736 / 1352736
Acquisitionoffixedassets
andotherinvestments / 2875000 / 108000 / 108000 / 108000 / 108000 / 2342600 / 200000 / 0 / 1272200 / 145000 / 0 / 0 / 7266800
Cashflows ($)
Beginningoftheperiod / 1000 / 300 / -400 / -1100 / -1800 / -2500 / -3200 / -11247 / 231944 / 592408 / 952872 / 1313336 / 1000 / 1673800 / 7848246 / 14021892 / 20195538
Endoftheperiod / 300 / -400 / -1100 / -1800 / -2500 / -3200 / -11247 / 231944 / 592408 / 952872 / 1313336 / 1673800 / 1673800 / 7848246 / 14021892 / 20195538 / 26369184
Netcashflow( $ ) / -700 / -700 / -700 / -700 / -700 / -700 / -8047 / 243191 / 360464 / 360464 / 360464 / 360464 / 1672800 / 6174446 / 6173646 / 6173646 / 6173646

Projectimplementation period- 60 months

Paybackperiod -20 months

Profitsfromthe project- €22.855.437,00

FINANCIALHIGHLIGHTS

It is planned to organizea70-jobs

Break-even point is afterproduction 3250 tons ofproducts in the range.

Indicator / 1st month / 2nd month / 3rd month / 4th month / 5th month / 6th month / 7th month / 8th month / 9th month / 10th month / 11th month / 12th month
Net proceeds / € / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 775,393 / 998,589 / 1,000,245 / 1,001,905 / 1,003,567
Self-cost / € / 6,168 / 6,168 / 6,168 / 6,168 / 6,168 / 17,030 / 87,387 / 507,124 / 634,443 / 655,584 / 656,549 / 657,516
including
Raw materials and supplies / € / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 403,811 / 520,043 / 520,902 / 521,762 / 522,624
Other variable costs / € / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 15,855 / 20,419 / 20,452 / 20,486 / 20,520
Payment of the production staff / € / 0 / 0 / 0 / 0 / 0 / 0 / 42,815 / 42,886 / 42,957 / 43,028 / 43,099 / 43,170
Other production costs / € / 0 / 0 / 0 / 0 / 0 / 8,547 / 214 / 214 / 6,667 / 257 / 257 / 258
Depreciation / € / 6,168 / 6,168 / 6,168 / 6,168 / 6,168 / 8,483 / 44,358 / 44,358 / 44,358 / 70,944 / 70,944 / 70,944
Gross profit / € / -6,168 / -6,168 / -6,168 / -6,168 / -6,168 / -17,030 / -87,387 / 268,269 / 364,145 / 344,662 / 345,356 / 346,051
Payment of the administrative and commercial staff / € / 10,295 / 10,312 / 10,329 / 16,074 / 17,489 / 22,402 / 25,645 / 25,687 / 25,729 / 25,772 / 25,815 / 25,857
Administrative costs / € / 940 / 942 / 943 / 945 / 946 / 948 / 25,851 / 25,894 / 25,937 / 25,980 / 26,022 / 26,065
Commercial costs / € / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 2,337 / 3,009 / 3,014 / 3,019 / 3,024
EBITDA / € / -11,235 / -11,254 / -11,272 / -17,018 / -18,436 / -31,897 / -94,525 / 258,709 / 353,827 / 360,840 / 361,444 / 362,048
Interest / € / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0
Profit before tax / € / -17,403 / -17,422 / -17,440 / -23,187 / -24,604 / -40,380 / -138,883 / 214,352 / 309,470 / 289,896 / 290,499 / 291,104
Taxes (Single tax) / € / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 4,824 / 46,383 / 46,480 / 46,577
Net profit (loss) / € / -17,403 / -17,422 / -17,440 / -23,187 / -24,604 / -40,380 / -138,883 / 214,352 / 304,645 / 243,512 / 244,019 / 244,527
Investment / € / 3,490,000 / 108,000 / 108,000 / 108,000 / 108,000 / 1,778,425 / 200,000 / 0 / 1,220,044 / 146,331 / 0 / 0
Cash flows from operating activities / € / -11,395 / -11,414 / -11,432 / -17,179 / -18,597 / -33,511 / -98,956 / 314,951 / 421,607 / 388,272 / 388,901 / 389,531
Cash flows from financial activities / € / -2,975,889 / -107,991 / -107,991 / -104,911 / -107,239 / -1,675,117 / -281,290 / -215,576 / -1,202,664 / -179,773 / -319 / -319
Cash flows from investing activities / € / 7,266,800 / 0 / 0 / 0 / 0 / 0 / 0 / -139,328 / -198,019 / -158,283 / -158,613 / -158,943
Total cash flow for the period / € / 4,279,517 / -119,405 / -119,424 / -122,091 / -125,836 / -1,708,628 / -380,246 / -39,953 / -979,077 / 50,216 / 229,970 / 230,269
Monetary funds at the beginning of the period / € / 19 / 4,279,535 / 4,160,130 / 4,040,707 / 3,918,616 / 3,792,780 / 2,084,152 / 1,703,906 / 1,663,953 / 684,876 / 735,092 / 965,062
Monetary funds at the end of the period / € / 4,279,535 / 4,160,130 / 4,040,707 / 3,918,616 / 3,792,780 / 2,084,152 / 1,703,906 / 1,663,953 / 684,876 / 735,092 / 965,062 / 1,195,332
Indicator / 2nd year / 3rd year / 4th year / 5th year
Net proceeds / € / 13,526,074 / 13,797,813 / 14,074,988 / 14,357,706
Self-cost / € / 8,793,979 / 8,953,643 / 9,115,689 / 9,280,976
including
Raw materials and supplies / € / 7,043,584 / 7,184,456 / 7,328,145 / 7,474,708
Other variable costs / € / 276,554 / 282,085 / 287,726 / 293,481
Payment of the production staff / € / 619,092 / 631,474 / 644,103 / 656,985
Other production costs / € / 3,416 / 4,295 / 4,381 / 4,469
Depreciation / € / 851,333 / 851,333 / 851,333 / 851,333
Gross profit / € / 4,732,095 / 4,844,171 / 4,959,299 / 5,076,730
Payment of the administrative and commercial staff / € / 313,637 / 319,910 / 326,308 / 332,834
Administrative costs / € / 317,333 / 323,680 / 330,154 / 336,757
Commercial costs / € / 40,761 / 41,576 / 42,408 / 43,256
EBITDA / € / 4,911,698 / 5,010,338 / 5,111,763 / 5,215,216
Interest / € / 0 / 0 / 0 / 0
Profit before tax / € / 4,060,364 / 4,159,005 / 4,260,430 / 4,363,883
Taxes (Single tax) / € / 649,658 / 665,441 / 681,669 / 698,221
Net profit (loss) / € / 3,410,706 / 3,493,564 / 3,578,761 / 3,665,662
Investment / €
Cash flows from operating activities / € / 4,899,496 / 4,344,859 / 4,430,055 / 4,516,955
Cash flows from financial activities / € / 229,039 / 641 / 714 / 729
Cash flows from investing activities / € / -2,216,959 / -2,270,817 / -2,326,195 / -2,382,680
Total cash flow for the period / € / 2,911,577 / 2,074,683 / 2,104,574 / 2,135,003
Monetary funds at the beginning of the period / € / 1,195,332 / 4,106,908 / 6,181,591 / 8,286,166
Monetary funds at the end of the period / € / 4,106,908 / 6,181,591 / 8,286,166 / 10,421,169

TheCollateral

3.632 acres of land, office buildings and manufacturing plants a total area of 3800 square meters

Current value of these assets: 1 700 000 €