Plan

Partner - Mantrac

Joint Venture Format (Through a Dealership)
- Mantrac will focus on the marketing, distribution and selling
- FAS Incoterm for responsibility of product

Commercial Offer:

- Mantrac will get a 25% cut of revenues from sales
- CAT receives all payments from customers, Mantrac receives commission afterward
- All payments will be preferred in USD, but if the customer wishes to pay in the Nigerian naira with a 17% upcharge

Memorandum of Understanding:

View Memorandum of Understanding Here

3 year partnership with Mantrac

Following Caterpillar policy and Illinois state law

FAS Incoterm: Peoria, IL

Risks

Stability of Currency and Economic Instability

Demand

Corruption

Logistics

Machines are manufactured in the US and transported, by sea, from the Heart of Illinois Regional Port in Peoria, Illinois to the Apapa and Tin Can ports in Lagos.
We will be using the Free Alongside Ship (FAS) INCOTERM.

Revenue & Margin (Machine & Services Combo)

Year 1: Average

Revenue: $40.3M

Gross Margin (GM): $30.2M

Year 2: Bust

Revenue: $26.2M

Gross Margin: $20M

Year 3: Boom

Revenue: $55.3M

Gross Margin: $41.5M

Calculations: Pipelayer Info Sheet.xlsx *Note: These future projections do not include the opportunities for sewage and water transport

Market Development Budget

$2,045 per person

$8,180 Total

Internal Resources

General expenses
Research and Development

$13,800 Total

Outside Contracted Services

Legal fees
Marketing

$78,020

$100,000

Ramp Strategy

Day 0

Start in Lagos working on oil pipelayers and penetrating both the private owner market and national market.

Year 1

Expand to other large oil producing states: Akwa Ibom, Delta, Rivers, Bayelsa

Year 2

Solidify Year 1 expansions and increase market share

Year 3

Expand to construction, sewage, and clean-water initiatives in Nigeria

Initial Investment Required

Final Pitch / Why Team Nigeria

Investment in this project is an investment in the future of energy
Alternative forms of energy are not being adopted as quickly as we think
Great opportunity to realize revenue

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