Emerald Investment Ppt Final No Animation

8/4/2019 Emerald Investment Ppt Final No Animation

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Copyright Emerald

PANAMA TEAK PROJECT


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Emerald Investment

The following presentation includes various

statistics pertaining to inflation, including sellingprice indices and current market values. Please beadvised that past inflation and selling price trends

are no guarantee of future performance.

Individuals should consult their own professional

advisors to determine their financial needs.

No information provided or opinion expressed inthis presentation constitutes an offer to buy or sell

any security.

Copyright Emerald


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Why teak wood?

Teak is a close grained hardwood with highnatural oil content. It is one of the hardest,strongest and most durable of all timbers, highlyresistant to any rotting and almost impervious tothe effects of hot sun, rain, frost or snow. Thesecharacteristics combine to make it the idealtimber for all outdoor and indoor applications. Ithas been the number one choice of boat buildersand naval industry for centuries due to its

excellent qualities.

The best option in the market.

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Why teak wood?

Decreasing supply and increasing demand. Registered increase of an annual 8% of teakmarket price in the last 10 years. World population is more than double in last 5

decades causing an increase in timbers demand. Pressure from the United Nations and keygovernments forcing new legislation to prohibitthe cutting of indigenous Teak trees, making the

plantations teak wood more valuable. In the near future, only quality hardwoods fromcertified sustainable plantations will be allowedto be sold.


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Why teak wood?


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Demand for Hardwood in millions of m3.Source: FAO Food and AgricultureOrganization.

Source: International Tropic Timber Organization(ITTO). Myanmar teak timber price (in EURO), fromnatural forest in the last years.


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Where is Panama located?

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Where our project is located?

Our project is locatedonly 30 miles northfrom the center ofPanama City in astrategic location forlogistic operation andground transportationto the two main

container ports of theCopyright Emerald


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Why choose Panama foryour investment?

Panama Republic, the fastest growing market in centralAmerica.

US Dollar based economy. Democratically elected government with noindigenous military in the area.

One of the lowest crime rates in Central and SouthAmerica. The most sophisticated and secure Banking center inthe area. The Panama Canal with its 3rd lane expansion

giving economic stability to the country.

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Why choose Panama foryour investment?

Panama Republic, the fastest growing market in centralAmerica.

Reliable and low cost labor and technology are available. Modern communication system in place. A fully functional stock and debt market.

An excellent retirement plan including discounts in hotels,restaurants, flying tickets, hospitals, private clinics and manymore, as detailed in the law No. 6 of 16th of July of 1987. With $ 80,000.00 invested in a certified reforestation programthe investor will be able to apply for an indefinitely visa

residence, that give you all the benefits of a truePanamanian citizen.

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Why grow teak in panama is awinning choice?

Investment in reforestation and its industrialization are 100%deductible from taxable income in the Republic of Panama. Interest payments, dividend payments and capital gains, from

reforestation related investments, are tax exempt in theRepublic of Panama for 25 years since the beginning of theproject. Any equipment used to develop a reforestation related projectcan be imported tax-free.

Incentives to investors in reforestation:

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Why grow teak in panama is awinning choice?

Panama is one of the few countries in the world, which hold theoptimal climatic balance and geological layout for growing teaktrees. With his 2 separate season (dry season from January to April

and wet season from mid April to December) Panama has theperfect balance of rain falls mm per year (1600mm to 2500mm)that is exactly what teak needs to grow. Also the temperature is optimally for teak development:between 23-27 Celsius (73-80 Fahrenheit) all over

the year. Panama is the only region in Central America,

which is not in hurricane territory.

Climatic benefits of the Republic Of Panama:

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PROJECT DEVELOPMENT:

Plantation Process:

I. Preparation of land

II. From seed to plant

III. Planting process

IV. Management

V. Thinning

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I. Preparation of land:

Emerald Investment only establishes plantations on fallowcropland or pasture land. A specific area establishment plan isproduced and the soil is prepared for planting.

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I. Preparation of land:

Soil chemical and compositions tests are done and the most appropriatelocations are chosen to meet teak trees requirements. Our seedlings are selectedfrom the best available sources in the market. Plantations grown from the highestquality seeds result in a much more uniform germination, growth and betterperformance at the end of the period.

Planting site is prepared before the plantation begin. Our staff eliminate allunwanted vegetation and cleans all the Area, modifies drainage patterns andreducing the risk for soil erosion.

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II. From seed to plant:

Emerald Investment utilizes only thebest seeds in the market, providedby Costa Rica's CATIE whichdeveloped an improved pretreated

seed quality to low the risks relatedto germination and growth of thetree.

The seeds are cultivated in aprotected environment (nursery) for6 to 8 weeks until they are ready tobe transplanted in the pre-prepared

soil.

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III. Planting process:

Planting process is done in straightlines, referred to as squareformation, with 3 meters (10 feet)between each plant. The distance is

designed to give the plants the lightthey need for an optimaldevelopment and to allow effectivecultivating of the area withmachinery. Proper planting

techniques influence the growth ofthe trees and reduce mortality.

Emerald investment selects betterspecimens and sows approximately

1100 teak trees for one hectare(2.47 acres or 10,000 m3).

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March2005

February2007

February2008

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2005 20

06

2008Copyright Emerald


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Page 19Copyright Emerald


IV. Management:

An effective management policyincrease incredibly your plantationsresults, in term of dimensions of thetrees (total cubic meters/board feet

at the end of the period ) and theirquality.

Our personal constantly check theplantation and remove all competingvegetation, control any pests andprune the trees to increase theproportion of knot free wood. Emerald Investment developsindividually adapted plan for eachparcel depending on singular lotsneeds to ensure the perfect growthof the teak during the rotationperiod.


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Page 20Copyright Emerald


V. Thinning:

Before the final harvest, twothinnings are done to allow thestrongest trees to continue theirgrowth. The thinning is used to

reduce the density of the plantationto sustainable levels, by removingthe poorest trees.

This thinning balances the requiredspacing and quality of the plantation,resulting in more wood of higherquality being grown. These thinnings

are done after the eighth andfourteenth growing season of thetrees. The final harvest of the trees isdone in their twentieth year.


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WHAT ARE YOU PURCHASING ? :

Client purchases and retain 1 hectare (2.5 acres) of

planted and fully managed Teak trees.

Each parcel purchased from client is planted withapproximately 1,100 quality Teak seedlingsobtained through a recognized international grower.

Each seed is a guarantee of an excellent qualityteak at final harvest. Complete land preparation, planting, care andmaintenance of Teak trees purchased throughoutthe entire growth cycle (Twenty-years for new

seedlings).

Sale of marketable timber in the wholesale Teakmarket on behalf of the client, obtainingfair and available wholesale pricing (orpreparation for delivery to the client upon request).

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WHAT ARE YOU PURCHASING ? :

The Purchase Price is the only out of pocket cost tothe client The amount paid at the end of theperiod is net after deduction of felling & logisticscosts and a 8% - 12% administrative charge tocompensate the cutting, management and sellingservices provided by EMERALD during the completerotation period.

Cutting and preparation services (conversion tomarketable timber or logs) at final harvest.

An insurance provided by EMERALD to protect yourinvestment :

A fire insurance to protect you and your moneyfrom accidentals fires. Another insurance provided internally fromEMERALD:

we replace without any additional costs for

the clientCopyright Emerald


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PURCHASING OPTIONS :

q OPTION A: 20 year lease option. It includes: Purchase price: $ 30,000.00

Management fee: 8% of the gross income after

each thinning or after the final harvest.

Property of the land: NOT INCLUDED (only a leasefor 20 years and a timber deed that guaranteeyou all the operation).

q OPTION B: Property of the land. It includes: Purchase price: $ 35,000.00

Management fee: 12% of the gross income aftereach thinning or after the final harvest.

Property of the land: INCLUDED (we will give youthe full property of the land).

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Purchasing prices, options & discounts:

No. ofHectare

Pricefor

Hectare

%discou

nt

Total SavingAmount

Pricefor tree

1 $30,000.0

0

0% $30,000.00

0 $27.00

2 $

30,000.00

0% $60,000.0

0

0 $27.00

3 $29,400.00

2% $88,200.00

$1,800.00

$26.72

4 $29,400.00 2% $117,600.00 $2,400.00 $26.72

OPTION A

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Purchasing prices, options & discounts:

No. ofHectare

Pricefor

Hectare

%discou

nt

Total SavingAmount

Pricefor tree

1 $35,000.00

0% $35,000.00

0 $31.81

2 $35,000.00

0% $70,000.00

0 $31.81

3 $34,300.00

2% $102,900.00

$2,100.00

$31.18

4 $34,300.00

2% $137,200.00

$2,800.00

$31.18

5 $34,300. 2% $171,500.$3,500.0 $31.18

OPTION B

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Hypothetical return:preliminary thoughts :

As we said at the beginning, the followingpresentation includes some variables that are hardto predict like inflation, future selling price andfuture market values.It is for this reason that our presentation uses only

actual values directly obtained from our 10 yearsexperience in wood market.We will present you the worst scenario that canoccur with the actual lower market value and thereal calculation of the cubic meter generated in theperiod. Even in this condition you will see that is stillextremely convenient invert in reforestation.Please take note that for the last 15 years the pricenever register an increment lowerthan 8% per year.

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MAI: what is it?

MAI means Main Annual Increment. Simply

speaking is how much your teak plantation groweach year in cubic meter/board feet. For exampleMAI=12 means that your plantation grow 12 cubicmeter for year. MAI may depends on several factors: the soilcomposition, management, rainfall percentage, right

thinning policy, etc MAI in Panama can fluctuate between a value of 12and 16. It means that at the end of rotation yourplantation may generate the following numbers ofcubic meter depending on MAI:

MAI=12 12 x 20 years = 240 cubic meter forhectare MAI=14 14 x 20 years = 280 cubic meter forhectare MAI=16 16 x 20 years = 320 cubic meter forCopyright Emerald


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MAI: difference in final harvest

In this graphic we can easily find out what is the

difference in the total cubic meters at the end of theperiod depending which MAI category we arereferring to. 1 m = 424 board feet

0

2

4

6

8

10

12

years

cubic meter

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What is the hypothetical returnafter 20 years?:

In the following charts the investor will seepossible return divided in 3 macro categories:MAI=12, MAI=14, MAI=16. Each category will present you 2 options:

purchasing price of $ 30,000.00 (without landsownership) and purchasing price of $ 35,000.00(which includes lands property).

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Please take note that we are only using the currentmarket price of the teak per cubic meter tocalculate the return of the investment. More likelythe market value of the Teak in the next future isgoing to be higher allowing a better positiveinterest.


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Hypothetical return, MAI = 12:

Purchaseprice

M3 at the endof period

Total sellingprice

Managementfee (8% -

12%)

Annualgross

interest

Global %return at

the end ofthe cycle

$30,000.00 240 $120,000.00 $9,600.00 13.40% 400%

$35,000.00 240 $120,000.00 $14,400.00 10.08% 342.8%

Average actual market price

v Please take note that the second option of$35,000.00 include the property of the land whichwill increase value in the next 20 years.

v 1 m = 424 board feetCopyright Emerald


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Purchaseprice

M3 at theend of period

Total sellingprice

Managementfee (8% -

12%)

Annualgross

interest

Global %return at

the end ofthe cycle

$30,000.00 280 $140,000.00 $11,200.00 16.46% 466.6%

$35,000.00 280 $140,000.00 $16,800.00 12.60% 400%





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Purchaseprice

M3 at the endof period

Total sellingprice

Managementfee (8% -

12%)

Annualgross

interest

Global %return at

the end ofthe cycle

$30,000.00 320 $160,000.00 $12.80000 19.53% 533.33%

$35,000.00 320 $160,000.00 $19,200.00 15.11% 457.14%





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What risks are related toyour investment ? :

FIRE: Fires are very rare in the Panamaniansubtropical climate because dry periods only last for3 months. After 4 years both leafs and the bark isvery resilient against fire. However on the perimeterof the lot will be create a fire strip that will preventeventual fire to penetrate the lot. Adding to thisEmerald will have an insurance against potential fire(more information will be disclosed upon request). INSECT ATTACK: Due to the special characteristics

of teak trees there isnt any known insect threatwhich could harm a matured teak tree plantation inPanama. Young plants can be attacked by insectschewing away at the roots. To prevent this fromhappening the trees are treated with a specialpesticide.

LIVE ANIMALS: A strong fence will be built aroundthe perimeter of the lot blocking animals to step inthe plantation area.

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ILLNESS: Teak is extremely resilient towardsdiseases. However its recorded that sometimes theroots are viable to fungi attacks. New plants will betreated to counter this. When the tap root is

matured the risks disappear. HURRICANES: In Panama there is no history ofhurricanes and natural disasters. Even simplestorms are very rare in Panama. The big weathersystems, from the north and from the south, usuallytakes a total different trajectory, with no directconsequences for Panama.

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PRICE REDUCTION:Nothing is pointing to a decrease in demand,and the decreasing supply combined with the demands for certified plantationsor forests will push prices up on hardwood. EMERALD cant imagine a courseother than a stabile and positive one. Price fluctuations in wood are notinfluenced by the global economy as a whole. Tree investments will prove aviable addition to a healthy portfolio. Plantations supplies are less than 1 % of

the total consumption, which means that 99% coming from illegaldeforestations. It is hard to imagine there being enough plantations to meetthe demands for certified wood. To ensure the quality of trees we havegathered a team of very experienced people and in conjunction with those wehave made an agreement with external professionals to continuously makequality control of the work done by EMERALD.

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Why investing in teak andwhy now? :

profitable and secure investment.

possibility to apply in the future for carbon creditprogram.

helping mitigate global warming.

constant increase trend of global prices.

increasing of global demand due to illegaldeforestation.

Increasing of global population is directlyconnected to hardwood demand.

Panama is one of the very few country in the worldthat has a perfect climate balance, optimally to

develop a reforestation program.Copyright Emerald


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Contact information :

USA CONTACT:

Davide Tomassoni4199 Maya Cay Ln

Jupiter, Florida, 33458Tel: +1 561 317 [email protected]@gmail.com

PANAMA CONTACT:Matteo MasettiAve. Justo Arosemena,

Edif. Winky, P.O.BOX0816-07393Cel.+507 67810882

Tel/fax. +507 2252006mat.emeraldinvestment@g

il

PLEASE CONTACT US FOR ANYFURTHER INFORMATION.

C i h E ld

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Emerald Investment Ppt Final No Animation