...Advanced concepts for Water Resources

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1 ...Advanced concepts for Water Resources Copyright : Giuseppe Ingiaimo

2 Premise This document is written directly by the initiator of project in a no perfect English. This is for economic reasons and to avoid to disclose confidential information and concepts to professional translators. The apologies from the Author for this. Introduction The initiator/promoter To propose this project is Mr. Giuseppe Ingiaimo, a 56 yrs chemist technician highly experienced in water treatment technologies jointly to EUROPURE, an individual firm owned by Mrs. Domenica De Marco who is his wife and the major cooperator. Mr. Ingiaimo is also a Manager for Water Resources and at meantime, he is employee as Responsible of Municipal Water Office in Licata (Sicily). He has ideated and since 1982 he manufactures some special low cost agricultural desalination facilities, moreover he manufactures drinking water purifiers and many other water treatment equipment (some of which exclusive) for any use. He has great competences and skills also in maintenance and management of water treatment facilities, sewage systems, aqueducts and he has great capabilities in problems solving about various water issues. Giuseppe Ingiaimo, as independent worker, was connected with a wide range of firms and for them he has cooperated for long time as Technical Manager designing and managing the manufacture phasys, the management and the maintenance of a number of water treatment systems, as employee, instead, he has managed and mantained large municipal sewage systems and sewage purifiers, large municipal desalination facilities, municipal drinking water systems and various water related facilities depending from Municipal Authority. From about 10 yrs, as independent worker, he is the Technical Manager of EUROPURE. For these reasons Giuseppe Ingiaimo was able to acquire a valuable and unbeatable know-how during more than 30 years of activity in this industry. The Company EUROPURE currently is an individual firm established in date It deals in components and plants for water treatment and for management of Water Resources. EUROPURE is owned by Mrs. Domenica De Marco, a valuable Acountant very experienced in management of business, training and management of HR.

EUROPURE is the ultimate firm which Giuseppe Ingiaimo is cooperating with and because the owner of such firm is his wife, this is equivalent to be co-owner of the same.

for any use. EUROPURE is present online by means a virtual store (AQUA e-shop) for selling of water treatment and management equipment and devices at very reasonable prices.

3 EUROPURE is the ultimate firm which Giuseppe Ingiaimo is cooperating with and because the owner of such firm is his wife, this is equivalent to be co-owner of the same. In past time ans since 1982 in fact, he was the technical manager of a lot of companies with which he has manufactured and sold agricultural desalination equipment and other water treatment systems for any use. EUROPURE is present online by means a virtual store (AQUA e-shop) for selling of water treatment and management equipment and devices at very reasonable prices. Currently EUROPURE is a well known trademark on worldwide basis in water purification industry and Ingiaimo is synonymous of well recognized and reliable supplier of effective, reliable and economic water treatment equipment. On basis of its well positioning, G. Ingiaimo has prepared in the contest of EUROPURE activities, a project of business really effective and profitable, easy to develop, scalable and at very limited risk. To realize the project here described a ltd. newco will be established at proper time. Elevator pitch Description of model of business Here we are introducing an idea of integrated business based on largerly proven models and on a know-how of more than 30 yrs. This will allow to reduce the level of risk making extremely safe the required investment. The model of busines we are describing here is appliable worldwide everywhere valuable entrepreneurs are available to establish a very excellent business to develop nationwide or within limited area of them country. The project consists in the establishment of the first network of very Special automatic stores named AQUA Shops in any country where water issues are experienced by people. The various AQUA Shops will be opened within cities with at least inhabitants. Initially will be opened Shops within the location area of investor, then will be considered cities more and more distant. The opening plan will consists into opening at 1 year the first pilot shop (at least a inhabitants city), then will be opened at least 2 new shops per year from 2 to 4 year and at 5 year, will be opened 3 new shops.

At 5 year, the basin of clients will amount at least to 250.000 inhabitants with a wide margin of increasing here non considered.

4 At 5 year, the basin of clients will amount at least to inhabitants with a wide margin of increasing here non considered. The expansion of AQUA Net will proceed on regional basis for opening of shops, then it will proceed nationwide. Within these stores will be sold, by special automatic machines: Drinkable Water of the Day a drinking water freshly purified with possibility to choice up to 13 different typologies and different level of dissolved minerals. The water will be sold in Bulk at very cheap price; Food Ice at top quality because it is produced by Drinkable Water of the Day. The Ice will be sold in Bulk at very cheap price; Purified water for Aquariums. The water will be sold in Bulk at very cheap price; Softened water for technical use. The water will be sold in Bulk at very cheap price; Demineralized water for scientific use. The water will be sold in Bulk at very cheap price. Moreover, within any AQUA Shops will be possible to surf and buy from AQUA e- Shop, the online shop specialized in water treatment and water related goods at very reasonable prices. The clients may pay the purchasing made into AQUA Shops, by a special rechargeable card (AQUA Card). Any stores, will be enabled even to install further machines for drinking water in various locations of city. They will be managed by remote. The cards used for payment will be recharged in the store under payment of the amount to charge. The profitability level The project in the initial 5 years involves the opening of 10 direct AQUA Shops. In this way, the overall revenues, at 3 year already will amount over 1 M and it will arise, at 5 year over 2 M. The net profit after debts and taxes, at 3 year will be over 300 K and at 5 year it will be over 700 K.

5 The investment requirements The activation of this project have to be performed in a restricted time frame because some competitors could copy the model realizing an antagonist organization in the same areas although the technical knowledges owned by Mr. Ingiaimo are largerly enough to protect the project from attempted tefth of idea. 1 Year The realization of this business project, first of all requires to establish a firm if it isn't already existing. Such firm will be entitled of project wthin the geographical area of your interest. Then, at 1 year will be opened the pilot Shop within an urban area as said. Will be possible to open more than one AQUA Shop within the same urban area. Of course in this case, if has to consider the general rule of 1 Shop per at least inhabitants, but in this specific application, will be preferrable to modify into 1 Shop per inhabitants. Moreover, where it is opened a first AQUA Shop, it is possible to install also one or more External Plants to control by remote from the Shop. This means that it is possible to place into strategical locations (quares, parking lots, gas stations, close to supermarkets...), further automatic machines (generally, those for producing and sell Drinking water) which will be controlled by remote from the local Shop. All water treatment machines and devices will be provided directly by EUROPURE. For starting the project, at 1 year, will be required an investment for The 1 year of activity will generate a profit over year During such year the first AQUA Shop will be fully operative and will be opened 2 further Shops within nearby cities. During the 2 year will be not required external funds but the development of project will proceed reinvesting part of profit from previous year. At 2 year, may be generated more than of profit. 3 year At 3 year the first 3 shops will be fully operative and will be opened the further 2 Shops. During the 3 year will be not required external funds and reinvesting part of profit from previous years, will assure the development of project. The 3 year, will generate a profit of more

4 year At such year will already 5 Shops fully operative and will be opened the planned further 2 Shops. During the 4 year will be not required external funds. The 4 year, will generate more than 1.

6 4 year At such year will already 5 Shops fully operative and will be opened the planned further 2 Shops. During the 4 year will be not required external funds. The 4 year, will generate more than of profit. 5 year During such year at the 7 shops fully operative, will be added further 3 new shops to reach the overall number of 10 AQUA Shops. During the 5 year will be required external funds but the development of project will be asured by the profit from previous years, reivested. The 5 year, will generate a profit of more than Total investment required In total, the required investment amounts to to recovery at 4 year. Description of project Within wide territories in the world, there is great demand of water of good quality especially for drinking and agricultural usages. Now, because the know-how and competences of promoter are well recognized even on international basis, he has arranged a scalable, very safe and profitable project of business which, if will be properly supported and funded, it is able to become an extremely interesting way to generate everywhere profits for investors and occupational opportunities improving the quality of life for 1000's of people worldwide. The project consists into gradual developing of an innovative network of Special Automatic Stores capable to make available to people water of very high quality level at very cheap price. Automatic dispenser machine Such water will be sold on Bulk for drinking and for any cooking use. It will be preferred to bottled water because its high quality and its convenience. Of course, within the AQUA Shops will be sold also other goods and in details they are: - Drinking Water of the Day which is freshly purified drinking water on bulk with possibility to choice up to 13 different typologies and different level of minerals - Food Ice produced by Drinking Water of the Day, on bulk - Purified water for aquarium on bulk - Softened water for technical use on bulk - Demineralized water for technical-scientific use on bulk

7 Moreover, within any AQUA Shops, will be possible to buy also water purifiers, softeners, filters, desalinators and any other equipment and devices for water from the online store (AQUA e-shop). The purchases made in these stores, will be possible to be paid by a special rechargeable card (AQUA Card) which will be recharged directly into Shops during time in which will be present the personnel. Everywhere an AQUA Shop will be opened, it is able to generate the following benefits: saving of money for families which no more will be obliged to use bottled water for drinking more respect for health of people which will be enabled to use very good water for drinking as well as for cooking for which, currently they are using generally, tap (unsafe) water; greater comfort and convenience for customers which can buy at our stores at any time and any days; greater respect for ecology because will be reduced the mass of empty plastic bottles that currently is disposed into the environment; reducing air pollution due to the reduction of traffic because will be reduced the transport of bottled water; additional money saving for families because will be possible to recharge AT NO COST their AquaCard. This will offer to clients a wide range of motivational reasons to visit the stores because there, they will find a wide assortment of high quality products, exclusive and at very competitive prices. The Drinking Water of the Day in fact, is an exclusive option available only within AQUA Shops, it results very competitive with the bottled water and a great part of consumers of such water, will prefer to buy our water in bulk where it will be available. The food ice, where it is available, will be characterized by a very high quality because it will be produced by the Drinkin Water of the Day so, it will result totally safe, extremely palatable and promptly available at anytime. Even the technical waters will be extremely competitive with technical water commercially available and even these will be environmentally friendly. These reasons will constitute the basis of a great success of AQUA Net and this will be the premise for application of special commercial strategies by which, all clients, already fidelized, will be sollicited to buy the water purification goods that they will find within the AQUA Shops and online at AQUA e-shop.

8 Operative modalities To realize this project, will be established a firm (a NewCo) if you haven't one. EUROPURE will remain as supplier of know-how, water purification goods, materials and spares for this NewCo. Then, NewCo will open the first pilot Shop within the city you prefer. This will enable you to standardize the features of whole business and adjust what is required (if one). Then will be opened new Shops in nearby cities on basis of criterion we said. These will be opened as direct Shops and the plan is to reach 10 direct Shops in 5 years and achieve 20 Shops in the further 3 years. Estimated sales figures During the initial 5 years, it is expected to open 10 AQUA Shops within cities with at least people. But if you will open the first Shop within a big city, you have to consider the overall population of said urban area. In this case infact, we suggest you to consider the opening of 1 Shop every inhabitants. Alternatively, you may decide to install some External Plants within the territory to serve mantaining only 1 AQUA Shop. The goal is to serve within 5 years, a population at least, of people. On basis of resulting data from market analysis performed in Italy we can consider an average consumption of 0,5 lt per capite per day. Moreover, when it is available, more clients prefer to use the purified water also for cooking. This assures more safeness and respect for health. When clients use purified water both for drinking and for cooking the averaging consumption will amount to about 3 liters per capite per day. Considering such extreme values of 0,5 lt and 3 lt, we can calculate a prudential average consumption of purified water of about 1,5 lt per capite per day. From studies of italian market, in 2012 it was found that about 46,9% of people is available to use purified tap water if available. We expect to reach the 20% of available market from 1 year and an yearly increasing of 10%. On basis of these data, was possible to calculate the sales projection of purified water which results as follows: 1 year: *46,9%*20%*1,5 lt *365 d = liters per year 2 year: *46,9%*20%*1,5 lt *365 d = liters per year 3 year: *46,9%*20%*1,5 lt *365 d = liters per year 4 year: *46,9%*20%*1,5 lt *365 d = liters per year 5 year: *46,9%*20%*1,5 lt *365 d = liters per year From same italian market studies, was founded a division of different tipologies of water as follows:

- Flat water: 65% - Little sparkling: 13% - Sparkling: 22% So, the detailed projection for initial 5 years will result: 1 year: FW: 834.000 lt, LS: 167.000 lt, S: 282.000 lt 2 year: FW: 2.502.

9 - Flat water: 65% - Little sparkling: 13% - Sparkling: 22% So, the detailed projection for initial 5 years will result: 1 year: FW: lt, LS: lt, S: lt 2 year: FW: lt, LS: lt, S: lt 3 year: FW: lt, LS: lt, S: lt 4 year: FW: lt, LS: lt, S: lt 5 year: FW: lt, LS: lt, S: lt Please, note that here are not considered the yearly increasings. About the Ice food, we have to consider that WHO has indicated such product as one of the food with more high risk of biological contamination. For this reason the aspect of quality will be very important within AQUA Shops. In the world the market of Ice food is very wide and it amounts to about 4 billions of kg per year, in EU it amounts to about 280 millions of kg per year and in Italy it amounts to 3 millions of kg per year and it tends to 200 millions in next years. This means that the projection of consumption for Ice food is an averaging 4 kg per capite per year. In this line we can estimate the minimal sales of Ice food, on basis of only 0,5 kg per capite per year, amounting to: As a prudential projection, we consider to reach only 10% of potential market and an yearly increasing of about 10%. 1 year: kg 2 year: kg 3 year: kg 4 year: kg 5 year: kg About the technical waters, it is not possible to have some projection because they are only complementary products which quantities will be very little. The market of water purifiers and other water treatment product, instead, it will be developed on basis of specific strategies tested by EUROPURE. Home water purifier

10 Considering that this project may applied in diffeent area of the world, we are considering that only the cheapest devices will be sold. The prices of sale for various products in fact may vary upon economic condition of country. For this is not possible to arrange specific economic projection. However, it is to consider that the machines that will be installed into shop, are able to produce 1000 lt of purified drinkable water at an overall cost of max 2-3. Generally, such purified drinkable water is sold by liter at price about 10 Cents, this means that selling 1000 lt, you will earn 100. It is extremely easy to know how many liters of purified drinking water on bulk can be sold into Shop and will be very easy to know what will be the profit. The recomendation for identification suitable locations for new AQUA Shops, is based only on population which have to be at least inhabitants. This means that within a small city of people, Agricultural desalinator the AQUA Shop will be able to sell more than 3800 lt per day of purified drinking water and its daily income may be of about 350. Within a city of inhabitants, will be possible to open an AQUA Shop and install further External machines, or it will be possible to open more AQUA Shops to reach an overall of 20 purified drinking machine in order to be capable to serve totally the potential customer for inhabitants. However, in a city of inhabitants, at first year, it is possible to have incomes for per day. Please, note that we are not considering the sales of other products sold in the shops. On basis of just made calculations, it is possible to estimate the overall sales figures in Euro for initial 5 year (without VAT): 1 year: year: year: year: year: This means an average expense of 16,144 within an year per person. In other words, an expense of 0,044 per day per person.

11 Overall considerations The EUROPURE know-how and its capabilities in water improvement industry, will be the main engine of this project. In this way, we assure the Investors they will be able to offer a top class service and quality of products in any AQUA Shops. Here was calculated the amount to invest and the sales figures expected. From above calculations, we can desume for overall project here described an investment of at first year. Such amount will be recovered at 4 year with no problem. The project in fact, is able to generate revenue from 1 year and it is capable to asure real profit from opening. Conclusion This project regards a business opportunity based on the water purfication industry which is well know, its market is very huge and it don't knows crisis. The big opportunity offered by this project consists also in the possibility to base the whole project on a very extraordinary know-how acquired in more than 30 years in this industry. The business to develop, consists in the opening an innovative network of Special Shops totally automated where will not be required the presence of personnel but only special automatic machines capable to produce and sell the products. You will be enabled to open the first pilot Shop within any city with at least inhabitants. To develop the project, will be established a proper NewCo or will be used an already existing one. The required investment of Euro will be recovered at 4 year of activity. A detailed calculation of economical and financial parameters and marketing plan, is enclosed to this document. P. ch. Giuseppe Ingiaimo Tel/fax: Cell: info@europure.it giuseppe@ingiaimo.com Skype: giuseppe_ingiaimo

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