AfriTecSustainable energy solutions

for a growing market

Business overview

• Sale, installation and servicing of biodigesters• Imported from the Netherlands• Targeting commercial dairy farmers• Clover and Parmalat farms in SA• Steady customer base in SA – currently offering

involved in support and services• Waste to energy – pasteurization, refrigeration,

electricity generation• Electricity sale to grid (long term goal)

Floating Dome Biodigester

Zambia – Economic outlook

• 44.5% large scale farmers purchase petroleum gas for operations• Real GDP Growth Rate

• Agriculture contributes 18% to GDP• Approx. 3500 commercial dairy farmers• Parmalat is the biggest milk processor, demand greater than supply• Demand for milk is greater than supply• Demand for energy in the dairy sector• Politically stable• Strong commitment of national government, through The National

Energy Policy of 2008• Distance to frontier better than other African countries – 59.65

2013 2014 2015* 2016*

6.7 5.7 6.5 6.6

Zambia – Economic outlook

• Real GDP Growth Rate

• Demand for petroleum products of 52million liters per month with expected growth of 40% y/y

• 44.5% large scale farmers purchase petroleum gas for operations• Agriculture contributes 18% to GDP

• Consumer Price Index (CPI)

• Current account balance % GDP

2013 2014 2015* 2016*

6.7 5.7 6.5 6.6

2013 2014 2015* 2016*

7 7.9 7.6 7.6

2013 2014 2015* 2016*

0.7 0 0.5 0.3

Risks & Considerations

• New Technology• Competitors• Instability, Ineffective Management, Financial Loss• Logistical issues• Intensive marketing campaign• Legislative and regulatory compliance • Partner with non-competitor companies• Contractual agreements with Parmalat• Foreign exchange risks• Credit risk• Skills shortage• Future growth• Negotiate longer repayments to supplier

Invoice and Supply Agreements

Your payment terms from the Netherlands Supplier• Lead time to SA or Zambia 4 weeks after Purchase Order issued• 60 days net on delivery

The payment terms you offer your customers (30 days net)• 30% invoiced onsite delivery • 60% invoiced on Installation and commissioning (this takes 2

weeks after delivery) • 10% invoiced on Final acceptance (not longer than 4 weeks after

commissioning)

Service agreement for 1st year included, thereafter paid upfront on a y/y basis