BUSINESS PLAN. AQUATICAM Sustainable Shrimp Aquatic Culture Project POWERED BY: Ref: RADIUS Market Cambodia All Right Reserved

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Randall Jeffry Paul
6 years ago
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2 This document set out the key strategic directions for AQUATICAM, which address the following areas: Vision, Mission and Goals Industrial Overview Strategic Directions Initial Capital Expenditure A comprehensive business plan is available in a separate document DISCLAIMERS: Radius Market Cambodia Co., Ltd is committed to providing its reasonable best effort of researched market materials to ensure the business project contents are interesting to readers, however, we strongly encourage all potential investor(s) to further conduct their own market research and analysis and seek 3 rd Party consultations prior to making such an investment decision. These projections are best estimates and based on available and extrapolated information, however, owing to the nature of this project, these results cannot be guaranteed. The information contained herein is for information only and does not constitute financial or professional advice in any way. The information is not intended to constitute any offer by us to enter into a contract with you or any other party. The Company will not responsible for any liabilities for such decisions or investments made as a result of reading this project summary. Should there be any doubt whatsoever please seek professional advice and stop reading this document.

3 AQUATICAM Sustainable Shrimp Aquatic Culture Project Vision Aquaticam inspires to contribute to sustainable and positive social economic advancement in the communities, where the poor is empowered to live in better living standard with dignity and to become a prominent Key Player in this vibrant lucrative international aquatic farming industry by transforming the embryonic and undeveloped shrimp farming sector in Cambodia to be a dynamic trading partner within the international seafood trading arenas. Mission Aquaticam is committed to becoming a multi-million dollar business and to establish itself as a global player in the aquatic culture farming industry while striving to become a Corporate Social and Environmental Responsible business entity in contributing to sustainable and positive social economical change in Cambodia. Goal We pursue our mission via: Building a strong, dynamic company by seeking approximately $10,000,000 USD from financial backer and/or Private Equity Institution to initiate the construction and initial development 150 hectares with approximately 400 pounds of Intensive Aquatic infrastructures for the purpose of cultivating shrimp and other related shell fish species in Cambodia, the funding shall be used strictly for the farming project of Aquaticam. Working in supply chain strategic partnership with Nautisco Seafood Manufacturing Ltd for sustaining raw material supplies while striving to minimize environmental impacts at all times Improving quality of life of communities living along the coast line of Cambodia Contributing to poverty reduction through creating jobs and sustainable household income.

4 Industrial Overview Globally, Shrimp is a major commodity worth billions of dollars in international trade. Shrimp production from both capture and aquaculture reached million tons in 2000, compared with 2.4 million tons in 1987, and continues to increase to today. The majority of shrimp are caught from the wild, and it accounts for 75% and at least 25% of total production comes from shrimp farming, which is worth more than US$2.5 billion per year. Japan and USA are the major importers of shrimps from Asia Countries such as Thailand, China, India, Indonesia and Vietnam as opposed to the European countries which they import most of their shrimps from countries such as Brazil, Ecuador, Argentina, and Colombia. The U.S., the world s leading shrimp consumer, imports over 600,000 tons of shrimp per year with an import value in the US$ billion range. About 99% of this warm water shrimp imported from Thailand, China, Indonesia and India. The remaining 1% (about 5-7,000 tons) is cold-water shrimp imported from Canada (almost exclusively C&P). As the demand for shrimp products continue to soar in the past ten years, it forces many big producers nations such as China, Thailand, India, Vietnam and other parts of the world includes Brazil, and Ecuador to find ways to increase the supply in order to cater this lucrative market sector around the world. As a result, many of these nations are focusing on an alternative solution such as shrimp farming to help alleviate some of the pressure from wild shrimp productions and to mitigate the risk in the event of supply shortages. The farmed shrimp seems to be the only solution to accommodate this multi-billion dollars industry which accounts for about 25% of global total shrimp productions and worth approximately $2.5 billion dollars US annually. Subsequently, when shrimp producer nations rushed to increase the supply to meet the demand, they were quickly faced with other obstacles such as the Anti-Dumping tariff, and level chemical known as ANTIBIOTIC which found in shrimps and prohibited from exporting to the European countries. The high level of antibiotic which is found in shrimp was due to the fact that shrimps are being treated with antibiotic for various diseases. However, the residue of antibiotic remains in the shrimp can be transferred to human. Regardless of obstacles and issues surrounding shrimp industry, shrimp consumptions continue to grow at an enormous rate and shrimp producers continue to find way to resolve these solutions with importer nations. From a seafood industry perspective, Cambodia is considered the only nation in South East Asia that the Seafood Industry is still lagging far behind most of its neighboring nations such as Thailand, Vietnam, China and India. Cambodia has the ability to produce farmed shrimps as it has a large quantity of land remain unused. However, because of lack shrimp producer in the country, it discourages entrepreneur from pursuing this avenue and the knowledge base for shrimp farming is also very limited. Thailand, Vietnam and China are countries which Aquaticam should be paying very close attentions to at least from a shrimp industry perspective, even though they are not considered as major threats to Cambodia s shrimp industry directly at least for the short terms (2-5 years), but their shrimp industry trading activities could ultimately impact Aquaticam both positively and negatively. However, should Aquaticam positions its business strategy and model that support the needs of these shrimp producers such as Vietnam, Thailand, and China, potentially Aquaticam will reap the enormous benefits in this lucrative business.

5 Strategic Direction To pursue our vision we operating based the following theory of change: Providing sustainable solutions to shrimp supplies and to positive social change in Cambodia. Establishing robust and resilient systems and capabilities to sustain incomes and manage institution effectively Working in strategic partnership with relevant + + = stakeholders to achieve scales Contribute to sustainable and positive social economic advancement in the communities and become a prominent Key Player in this vibrant lucrative international aquatic farming industry. What can AQUATICAM be good at? What drive AQUATICAM s economic engine? What is AQUATICAM passionate about? This theory of change makes AQUATICAM unique and competitive because we are not only maximizing shareholders wealth, but also we believe we can maximum impact on social development in Cambodia. Drawing on the strategic position analysis and the theory of change, the following strategies has been identified: Contribute to sustainable and positive social economic advancement in the communities and become a prominent Key Player in this vibrant lucrative international aquatic farming industry. Sustainable and resilient multi-million dollar business and a global player in the aquatic farming industry Providing sustainable solutions to shrimp supplies and to positive social change in Cambodia. + + Establishing robust and resilient systems and capabilities to sustain incomes and manage institution effectively Working in strategic partnership with relevant stakeholders to achieve scales STRATEGIES 1 Securing strategic location for farming 2 Adopting effective and efficient farming technologies 3 Managing strategic supply chain 4 Establishing governance and developing resilient institutional capability 5 Sustaining institutional growth 6 Strengthening balance sheet

6 Bigger Picture for Long Term Strategies HATCHERY & NURSERY CENTER (Already developed by the Government in 2011 at Sihanouk Ville) Revolutionizing Cambodia s Seafood Industry SEAFOOD MANUFACTURING ASSOCIATION OF CAMBODIA AQUACULTURE (Farming) AQUATICAM Create a One Voice Body to promote seafood exports Provide Micro Financing to Farmers Aquaculture Technical Support & Training Standardize Quality Control Management Process Business Development and Promotion PROCESSING PLANT FEEDING PROCESSING PLANT Anticipated Possible Outcomes (with over 10 million USD investment) 1 Direct Job created: 1,000 and Indirect Job created: 3,000 Live impact: more than 10,000 of people along the coast line First revenue is within 1."5 after the investment Trained Cambodian aquapreneur for future Cambodian seafood industry Attractive return on investment around 25% pa 1 DISCLAIMER: All information provided below is based on feasibility studies conducted in other countries, thus figures could be higher or lower, further feasibility studies are required to ensure its accuracy. These projections are best estimates and based on available market information at the time when feasibility studies engaged, however, owing to the nature of this project, these results cannot be guaranteed for the new project.

Initial Investment Startup Capital Investment (CAPEX) No. Activities Descriptions Unit Unit Cost Extended Cost % 1 Land Purchase 300 Hectares 300 $ 5,500 $ 1,500,000 15.

7 Initial Investment Startup Capital Investment (CAPEX) No. Activities Descriptions Unit Unit Cost Extended Cost % 1 Land Purchase 300 Hectares 300 $ 5,500 $ 1,500, % 2 Land Title Application Fees (subject to validation) 300 $ 1,500 $ 450, % Initial Site Assessment & Local Market Research 3 (3-Month) 1 $ 60,000 $ 60, % 4 Detailed Feasibility Studies (6-month) 1 $ 450,000 $ 450, % 5 Farming Construction License 1 $ 80,000 $ 80, % 6 Pond Preparations L: 100m X W: 20 m Depth 1.5m) 800 $ 3,500 $ 2,800, % 7 Aquaculture Systems and Accessories 800 $ 2,500 $ 2,000, % 8 Local Accommodations for Farmers 100 $ 2,500 $ 250, % 9 Inflow Water Supply Filteration Management System 1 $ 200,000 $ 200, % 10 Out Flow Waste Water Treatment Management System 1 $ 250,000 $ 250, % 11 Water Systems Installation Kits (PVC Pipe various sizes) 2000 $ 50 $ 100, % 12 Power Generator 100KVA 6 $ 50,000 $ 300, % 13 Power Installation and Material Costs 1 $ 50,000 $ 50, % 14 Office Building 20 m X 20 m (400s.qm) 400 $ 300 $ 120, % 15 Sludge Controller System 300 $ 250 $ 75, % 16 Environmental Impact Assessment License and studies 1 $ 70,000 $ 70, % 17 Investment License and Legal Documents 1 $ 60,000 $ 60, % 18 Soil Testing and Water Testing 1 $ 5,000 $ 5, % 19 Project Management Cost 1 $ 550,000 $ 550, % 20 Contingency Cost 1 $ 100,000 $ 100, % MT Cold Storage Facility (-25 degree) 1 $500,000 $500, % 22 Initial Working Capital 1 800,000 $ 800, % TOTAL INVESTMENT $ 10,760,000 Costs are estimated, and subject to adjust and change without prior notice Note: CAPEX subject to change without notice. Projected costs are subjected to 10% over/under of overall estimated costs. These projections are best estimates based on available information; however, owing to the nature of the project and highly volatile inflation rate, these may change.

Aquaculture for Poverty Alleviation and Food Security. Slide 2: World annual average per capita consumption of fish and fishery products

Aquaculture for Poverty Alleviation and Food Security Slide 1: Title 1. Good Morning! Slide 2: World annual average per capita consumption of fish and fishery products 2. According to FAO statistics, in