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P&C Maderas Internacionales P&C Maderas Internacionales S.A.” S.A.” INVESTMENT PROGRAM FORESTRY FARMS FORESTRY FARMS

P&C Maderas Internacionales S.A. INVESTMENT PROGRAM FORESTRY FARMS

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Page 1: P&C Maderas Internacionales S.A. INVESTMENT PROGRAM FORESTRY FARMS

““P&C Maderas Internacionales S.A.”P&C Maderas Internacionales S.A.”

INVESTMENT PROGRAM

FORESTRY FARMSFORESTRY FARMS

Page 2: P&C Maderas Internacionales S.A. INVESTMENT PROGRAM FORESTRY FARMS

In the last 50 years more than half of the inventory of trees in the world have been cut.

Approximately 10% of the world population or 600 million people earn their existence from forest and the lumber industry.

To replace this loss we have to replant 25 billion trees in the next 10 years just to recover these annual losses.

Hardwood lumber is the only commodity which has never come down in value, so it is simple to see that it is a good business.

Guatemala losses annually between 50,000 to 80,000 Ha. of forest and to stop this deforestation, the country needs 55 to 88 millions trees per year to maintain its forested areas.

It is estimated that the demand for lumber of all types will increase substantially in the next years. It is further estimated that this demand for lumber, especially tropical lumber, will increase in few years up to 50 % annually.

Source: FAO

Important ConsiderationsImportant Considerations

Page 3: P&C Maderas Internacionales S.A. INVESTMENT PROGRAM FORESTRY FARMS

Future Demand The continued demand for lumber and especially tropical lumber

will increase the prices continuously. Historically the price of Teak exported to Indochina between the

years 1979 to 1986 increased annually by 17%. The Association of North American Hardwood Producers, reports

that the price of Teak, increased in the years 1988 to 1992 by as much as 625%.

Recent price increases are dramatic in that board foot prices increased from US 3.00 to US 4.50. The last reported increases are even more dramatic because the prices of US 3 to US 4.5 board foot are sold today at US 6.00 to US 10.00 per board foot with the same specifications.

According to “National Geographic”, edition of July 95 there are plantation trees of Teak, which were sold at up to US 20,000 each .

According to international organizations the inflation rate of lumber prices are generally 6% per year and in hardwoods are between 9 % to 13 % per year.

Page 4: P&C Maderas Internacionales S.A. INVESTMENT PROGRAM FORESTRY FARMS

Would you like?Would you like?

To assure yours and your family’s future? To retire with a considerably bigger fund

compared to any other investments at a lower cost?

This is better than any insurance or retirement plan.

With this program, your investment has a very high return.

Page 5: P&C Maderas Internacionales S.A. INVESTMENT PROGRAM FORESTRY FARMS

Investment ProgramInvestment Program

With a relatively low investment you can obtain a mayor benefit which would be considerably better than depositing money into a bank.

Fine lumber has a very substantial financial future and maintains its value better than other investments.

Page 6: P&C Maderas Internacionales S.A. INVESTMENT PROGRAM FORESTRY FARMS

FORESTRY FARMSFORESTRY FARMS DefinitionDefinition

Size of property:– 10,000 square meters– 2.471 Acres.

Planted with Super Teak TOL trees from Thailand.

Full owner ship properly registered in the name of the new owner.

Including a Forestry Service Contract for 20 years.

Guaranteed production of 300 cubic meters of trunks.

Page 7: P&C Maderas Internacionales S.A. INVESTMENT PROGRAM FORESTRY FARMS

Private Resort Private Resort This project will enable the forestry farm

owners to enjoy himself at the “P&C” Private Resort, located just beside the Super Teak forest.

The Club will include green areas, parking, a swimming-pool and rooms to host only and exclusively forestry farm owners, family members and friends.

A heliport.

Page 8: P&C Maderas Internacionales S.A. INVESTMENT PROGRAM FORESTRY FARMS

Panoramic View of the Private ResortPanoramic View of the Private Resort

Page 9: P&C Maderas Internacionales S.A. INVESTMENT PROGRAM FORESTRY FARMS

Forestry FarmsForestry Farms

México

Page 10: P&C Maderas Internacionales S.A. INVESTMENT PROGRAM FORESTRY FARMS

Guatemala City

Forest Farms

Parcelamiento La Máquina

Escuintla

Santa Lucia Cotz.

MazatenangoCuyotenangoRetalhuleu

El Tulate

Champerico

Pto. QuetzalOcéano Pacífico

Location of Forest FarmsLocation of Forest Farms

Page 11: P&C Maderas Internacionales S.A. INVESTMENT PROGRAM FORESTRY FARMS

Ten minutes from Pacific OceanTen minutes from Pacific Ocean

Back Up Farm

Forest Farm Sectors

Pacific Ocean

Future areas for resort with swimming pull and parking. Bungalows and parking

Page 12: P&C Maderas Internacionales S.A. INVESTMENT PROGRAM FORESTRY FARMS

View to the northView to the north

Ten minutes from the beach inTen minutes from the beach in““El Tulate”El Tulate”

Page 13: P&C Maderas Internacionales S.A. INVESTMENT PROGRAM FORESTRY FARMS

El Tulate Beach El Tulate Beach

Page 14: P&C Maderas Internacionales S.A. INVESTMENT PROGRAM FORESTRY FARMS

Farm LayoutFarm Layout

. . . 35. .1 2 3 4 .

Back Up Farm Private Resort

Heliport

36 42. ..

Back Up Farm

Page 15: P&C Maderas Internacionales S.A. INVESTMENT PROGRAM FORESTRY FARMS

Location of Guatemala and ThailandLocation of Guatemala and Thailand(same latitude)(same latitude)

Guatemala Thailand

Page 16: P&C Maderas Internacionales S.A. INVESTMENT PROGRAM FORESTRY FARMS

Why Super Teak T.O.L. ?Why Super Teak T.O.L. ? Considering its growth rate, precious wood has the

highest commercial value in the world. Fast growth (15 to 20 years). Uniform yellow-gold color. Expandable, strong, stable, easy to work, it does not

break, it does not crack, resistant to termites, fungus, climate, salt water and has anticorrosive properties.

Better physical-mechanical properties than Ash, Beech, Pine, Honduran Mahogany, Mahogany and other.

High demand at world markets.

Page 17: P&C Maderas Internacionales S.A. INVESTMENT PROGRAM FORESTRY FARMS

Super Teak TOL Selection Diagram Super Teak TOL Selection Diagram

1st. Plus tree candidate (1:100)

100 trees

(40 x 40 m)

100 trees

100 trees

100 trees

100 trees

1 tree

1 tree

1 tree

1 tree

1 tree

(40 x 40 m)

100 trees

100 trees

100 trees

100 trees

100 trees

1 tree

1 tree

1 tree

1 tree

1 tree

1 tree 1 tree

2 nd candidat Elite tree (1:500)

1st. Plus tree candidate (1:100)

2 nd candidat Elite tree (1:500)

Super Teak TOLMother Tree

1:1000

Page 18: P&C Maderas Internacionales S.A. INVESTMENT PROGRAM FORESTRY FARMS

Cloning Lab Cloning Lab in Thailandin Thailand

Page 19: P&C Maderas Internacionales S.A. INVESTMENT PROGRAM FORESTRY FARMS

Plantations in ThailandPlantations in Thailand

Page 20: P&C Maderas Internacionales S.A. INVESTMENT PROGRAM FORESTRY FARMS

Super Teak TOL - 11 years old under ideal conditions

Page 21: P&C Maderas Internacionales S.A. INVESTMENT PROGRAM FORESTRY FARMS

Teak UsesTeak Uses

Page 22: P&C Maderas Internacionales S.A. INVESTMENT PROGRAM FORESTRY FARMS

Luxury Wood FlooringLuxury Wood Flooring

Page 23: P&C Maderas Internacionales S.A. INVESTMENT PROGRAM FORESTRY FARMS

                                   

  

Luxuries AppearanceLuxuries Appearance

Page 24: P&C Maderas Internacionales S.A. INVESTMENT PROGRAM FORESTRY FARMS

Fine Yates Fine Yates

Page 25: P&C Maderas Internacionales S.A. INVESTMENT PROGRAM FORESTRY FARMS

Source: Dr. Paiboolia Gavinlertvatana. Thailand.Source: Hans Lamprecht, Silviculture in The Tropics.

0

50

100

150

200

250

300

350

400

Super Teak TOL Regular Teak

Production differences between Production differences between Super Teak Tol and regular Teak Super Teak Tol and regular Teak

Page 26: P&C Maderas Internacionales S.A. INVESTMENT PROGRAM FORESTRY FARMS

Future of the BusinessFuture of the Business Biggest buyers: U.S.A, Europe and Japan. One of the best aspects of this crop are

potential high returns on investment. The availability of natural growing Teak

worldwide is decreasing dramatically. Actually, India and Thailand became

importers instead of producers and exporters. Exports from countries that harvest Teak

from their natural forests is decreasing greatly.

The future of the market is extremely big. It will be easy to sell these products.

Page 27: P&C Maderas Internacionales S.A. INVESTMENT PROGRAM FORESTRY FARMS

Future Demand Future Demand Burma, which is the current principal

producer of old Teak has no policies to reforest with Teak trees.

According to the World Bank Teak will disappear from Burma in a few years.

Page 28: P&C Maderas Internacionales S.A. INVESTMENT PROGRAM FORESTRY FARMS

Execution of the ProjectExecution of the Project

P&C Maderas Internacionales S.A. with its experience staff of foresters will look after the management of the farms. P&C Maderas Internacionales S.A. retains the right of collecting 10% of the value of lumber whenever the trees is harvested per each Farm if the goal is reached and then only on the amount exceeding the 300 cubic meters guaranteed.

Page 29: P&C Maderas Internacionales S.A. INVESTMENT PROGRAM FORESTRY FARMS

Extra bonusExtra bonus Teak is a specie that regrows after harvest. The following harvests, up to 5 times, will be more

productive because the trees by that time will have substantial root systems allowing more energy and growth patterns.

Production of seeds start 8 to 10 years after planting and could bring sales of up to US 2,000 annually.

Land value in the El Tulate area increased in the last two years by as much as 50 % .

The hardwoods never go down in prices according to National Institute of Forest in Guatemala.

Page 30: P&C Maderas Internacionales S.A. INVESTMENT PROGRAM FORESTRY FARMS

Guarantee Guarantee

P&C Maderas Internacionales S.A. will provide a Back Up plantation of Super Teak TOL.

This Back Up will be used to guarantee a minimum production rate of 300 cubic meter of logs per each farm.

Page 31: P&C Maderas Internacionales S.A. INVESTMENT PROGRAM FORESTRY FARMS

The PricingThe Pricing

Japan: US$ 3,500/Cubic Meter = 424 Board Feet This means US$ 8.00 per board foot

Friendly Forest Products (Wholesale): US$ 3.00 to US$ 7.00 per board foot.

Exotics (Retail): US$ 11.00 to US$ 19.00 per board foot.

Costa Rica Teak Plantations Economics: US$ 2,000 per tree in the year 20.

Hacienda Tenorio (Costa Rica): US$ 1,200 per tree.

Page 32: P&C Maderas Internacionales S.A. INVESTMENT PROGRAM FORESTRY FARMS

COMPARATIVE INVESTMENT COMPARATIVE INVESTMENT ANALYSIS PER 300 Cubic metersANALYSIS PER 300 Cubic meters

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000

$900,000

$1,000,000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Años

Plazo fijo 4.75%

Fondo pensiones 5.5%

Otra inversión 10%

Granjas forestales US 500/M3, tasa crecimiento 9% y 300 M3.

Page 33: P&C Maderas Internacionales S.A. INVESTMENT PROGRAM FORESTRY FARMS

Progress as of November 04Progress as of November 04

Page 34: P&C Maderas Internacionales S.A. INVESTMENT PROGRAM FORESTRY FARMS

Progress as of June 05Progress as of June 05

Page 35: P&C Maderas Internacionales S.A. INVESTMENT PROGRAM FORESTRY FARMS

Progress as of June 06Progress as of June 06Back Up farmBack Up farm

Page 36: P&C Maderas Internacionales S.A. INVESTMENT PROGRAM FORESTRY FARMS

Progress as of August 05Progress as of August 05(Mr. Peter Cook, President of the company)(Mr. Peter Cook, President of the company)

Page 37: P&C Maderas Internacionales S.A. INVESTMENT PROGRAM FORESTRY FARMS

Progress as of June 06Progress as of June 06

Page 38: P&C Maderas Internacionales S.A. INVESTMENT PROGRAM FORESTRY FARMS

Progress as of October 06Progress as of October 06

Page 39: P&C Maderas Internacionales S.A. INVESTMENT PROGRAM FORESTRY FARMS

El Tulate protected natural El Tulate protected natural reserved areareserved area

Page 40: P&C Maderas Internacionales S.A. INVESTMENT PROGRAM FORESTRY FARMS

Regular TeakRegular Teak Super Teak TOLSuper Teak TOL

Differences Between Regular Differences Between Regular Teak and Super Teak TOLTeak and Super Teak TOL

Branching Branching Auto pruning Auto pruning FormForm PerformancePerformance QualityQuality

Page 41: P&C Maderas Internacionales S.A. INVESTMENT PROGRAM FORESTRY FARMS

Super Value Introduction PriceSuper Value Introduction Price

U.S. $ 40,000.00 per Forest Farm

Cash Price US 35,000.

Page 42: P&C Maderas Internacionales S.A. INVESTMENT PROGRAM FORESTRY FARMS

Extra BonusExtra Bonus The Teak tree will re-grow

from its roots ones it is harvested, that means that the second growth rate will be larger because the tree has a much larger root system, so the second harvest will be faster.

P&C Maderas Internacionales S.A. can provide a new contract for the second growth.

Page 43: P&C Maderas Internacionales S.A. INVESTMENT PROGRAM FORESTRY FARMS

Export PlansExport Plans

Objectives of this group would be to:– Harvest, transportation processing and

export of lumber products to be a service organization or intermediate for lumber products.

– To obtain lumber quantities to get a market impact.

Capitalization would be in form of a corporation with the help of the Forest Farms owners.

Page 44: P&C Maderas Internacionales S.A. INVESTMENT PROGRAM FORESTRY FARMS

Who is P&C:Who is P&C: A company founded in year

2,000 by Guatemala and Canadian entrepreneurs.

P&C has the support of K&C Silviculture Farms Ltd. In Oliver British Colombia, Canada.

K&C Silviculture Farms is a reforestation nursery producing 60 millions trees annually .

P&C has the best and must modern seed processing equipment in Central America as well as the must modern seeding processing equipment and protocols of the must up to date and state of the art technology.

P&C is the main provider of forestry seedling in Guatemala and southern México.

www.pcmaderas.netwww.pcmaderas.net

Page 45: P&C Maderas Internacionales S.A. INVESTMENT PROGRAM FORESTRY FARMS

In P&C Maderas In P&C Maderas Internacionales, the small Internacionales, the small details make excellence, details make excellence,

however, excellence never however, excellence never will be a small detail.will be a small detail.

Thank YouThank You