PROPOSAL FOR EQUITY FUNDING

DE-DYNAMICS TEA SUGAR REFINERY

OVERVIEW
The proposed De-Dynamics Tea Sugar Refinery, Ogun State, Nigeria. The factory is to be
built in a location in Ogun State The sugarcane to sugar project, including sugarcane
farms, sugar milling plants, sugar refinery, ethanol plants, power generation plants, animal
feeds plant, fertilizer production plants, etc.
The executive summary captures our very reasons for proposing this project in Nigeria. The
sugar market in Nigeria is very vibrant and expanding everyday, considering our population
that is still growing. We are the highest consumers of sugar in Africa and its largest market.
The summary below details the potentials of the project and the profitability viability.
Attached also is the business proposal we have detailed for the project.

EXECUTIVE SUMMARY
There is a high demand for refined sugar in the Nigerian domestic market, same for the
international export market. Also ethanol, animal feeds, electricity (power) and fertilizer have
huge market within Nigeria and the neighboring West African countries. The Nigerian sugar
sector has the great potential to deliver the above products in an affordable, sustainable and
competitive basis.
The Nigerian sugar industry have the potential to provide national food security on sugar,
address the national unemployment and energy crisis, support the agricultural sector with
quality animal feeds and affordable fertilizers; including earning adequate foreign exchange
even better than the oil and gas sector.
Nigerian government has articulated this important potential of the sugar value chain in a
policy supported by a road map – Nigerian Sugar Master Plan (NSMP) and implemented
by the National Sugar Development Council (NSDC) of the Federal Ministry of Trade and
Investment.
De-Dynamics Tea Investments & Services Limited (DTISL) is a registered company in
Nigeria with current capitalization of one million ordinary shares valued at N1 each.
However, the forecasted capitalization is targeted to bring in money for off-taking the
sugarcanes from the out-growers, civil works and equipment and machinery. The funds are
expected to come in as equity participation and a reasonable and secured percentage of
ownership shall be given in exchange. It is projected that investors will be able to get their
money out of the business from the fourth year.
DTISL has identified this investment opportunity and have keyed into the NSMP. DTISL
investment is covering the entire sugar cane value chain - farming, milling, refining,
electricity generation, ethanol production, animal feeds production, and fertilizer production
among other ancillary products.
DTISL plans to have three (3) 25,000 TCD sugar milling plants with the associated milling
plants, ethanol plants, animal feeds plants, fertilizer plants and power generation plants (using
co-generation technology). With an average yield of 80 tons per hectare, the three 25,000
TCD sugar mills will require about 150,000 hectares of land. But because of new sugar breed
that we have discovered that has ability to survive within the raining belt. With low sunlight
and high water, we still have a yield of 80 tons per hectare and still have a good yield with
less land.
DTISL is looking up that with part the funds that will be allocated, we should buy/lease Sixty
Thousand (60,000) Hectares of land in within the South-Western State of Nigeria, for the
sole purpose of cultivating sugarcane for Sugar Milling Plants and Refineries and the other
associated plants to be located in the same complex.
We will further access land up to 20,000 hectares to plant within the States. These lands
would enable us meet our capacity requirements and further expansion and rotation of
cropping.
About 500 hundred acres of land would be needed for the Refinery, which would be situated
close to the port (if possible) – we can acquire a large warehouse around Ibafon/Apapa, Lagos
State. This would enable access for shipping of the finished refined product.
We would set up a cooperative sugarcane farming scheme in the following states; Ogun,
Ondo, Oyo and Lagos states. This scheme would enable us to have access to close to 150,000
hectares of sugarcane planted locally, creating employment and cash in the hands of the local
people. Because of the topography of Nigeria, we may not get this size of land in one
location. But where a state government can make that available, it will be fantastic – that will
be a settlement with accommodations of a room, self-contained.
Major players in the Nigerian sugar market are Dangote Sugar, BUA Sugar and Golden
Sugar. Currently, all import majorly raw sugar to refine. However, DTISL has the
comparative advantages over them as being the first and only Sugar Company in Nigeria that
will obtain all her raw sugar from her local farms. Consequently, DTISL will remain
successful in business easily becoming the market leader.
The sugar mills, refineries and associated plants shall be built in modular forms for easy
expansion depending on market realities. CBN through the “ANCHOR BORROWERS”
PROGRAMME (ABP)”, shall be funding the planting of the entire sugarcanes. However,
the funds for the off-taking of the sugarcanes from the farmers and the civil works with the
milling / refinery equipment and machinery shall cost about US$222 million investment for
the entire project in State.
The raw materials/inputs for these mills / refineries are sugarcanes from the farms in the DE-
DYNAMICS 150,000 hectares of land to be acquired/leased within the Southwestern States;
however, the major products of the investment are refined sugar, electricity (power), ethanol,

animal feeds, fertilizers and pharmaceuticals. The minor products of the project include pure
water, polypropylene bags, wine / drinks, paper and mono-sodium glutamate (Ajinomoto)i.e.
cooking seasonings. The companies producing these ancillary products shall be operating
with free electricity from the self-generated power of DE-DYNAMICS. This feasibility study
report considers only four major products (refined sugar, ethanol, electricity, and animal
feeds).
The Nigerian local sugar market including the West African sugar market is more than
enough for the refined sugar outputs of the refinery– put at a maximum capacity of 7,000 MT
of refined sugar a day; however, about 33% (150,000 MT of refined sugar per month) of the
refineries output shall be dedicated for export. DE-DYNAMICS is talking with foreign
companies and we are optimistic of securing off-takers’ mandate from them. We are equally
talking with a sister company that has already secured such mandate with Messrs Yuan Lin
& Rogelio Go of Changzhou Warm SUN Trading Company Limited, Changzhou, China for
a working arrangement.
The over 503 MW of excess electricity (difference between generated power and utilized /
consumed power) from the project shall be sold to the Nigerian national grid and even local
communities at affordable rate. The over 80 million liters of ethanol to be generated from the
plant shall be sold locally and targeted at the NNPC ethanol white products blending project
for the auto industry. The Nigerian agriculture sector is more than enough to take the over
770,000 tons of animal feeds to be produced from the investment.
The four (4) major products of the project – refined sugar, electricity, ethanol and animal
feeds – shall be delivered from the first day of production activities; however,
pharmaceuticals shall be produced from the third year of production activities. Also, one of
the minor products – pure water bottle – shall be produced from the first production year and
the other minor products from the fourth production year. Also, the fertilizer plant shall be
established early enough in the project implementation cycle to effectively support the
project.
The projected annual revenue and corresponding Profit After Tax (PAT) for corresponding
Profit After Tax (PAT) for the investment is as follows:

SN Product 2020 2021 Total (US$000)

Revenue Revenue Profit Revenue
Profit Profit
1 Refined Sugar 1,171,372 1,362,374 2,533,746
725,265 810,849 1,536,114
2 Ethanol 60,000 30,402 80,000 38,892 140,000 69,294
 3 Electricity (Power) 36,069 24,012 48,092 84,162 48,950
24,938
4 Animal Feeds 105,601 46,516 140,801 246,402 104,720
58,204
Tota For a location 1,373,042 1,631,268 3,004,310
l 826,195 932,883 1,759,078

These are expected to grow progressively in the subsequent years when optimization of the
production process, supply chain process and logistics including corporate governance would
have stabilized.
The cash flow projection shows that the business is a cash cow. From the first month of
production, the business shall be having sustained cash surplus from operations. The cash at
hand at the end of first year operations will be US$1.119 billion increasing to
US$2.453billion the following year. This is after the loan of US$150 Million must have been
fully repaid within the first two years of production.
The socio-economic benefits of DE-DYNAMICS TEA & SERVICES LIMITED within
the State cannot be over emphasized. The investment shall:
 Create thousands of sustainable jobs. The Nigerian Sugar Master Plan (NSMP)
template projects about 54,089 jobs (Factory - Permanent and seasonal, Agriculture -
Permanent and seasonal; and Admin & Services) for DE-DYNAMICS investment in
Ogun and other states (for the first phase of 150,000 hectares). In addition to over
30,000 farmers that shall be involved in the direct sugarcane farming.
 Assist significantly in addressing the nation’s power challenges by supplying about
303MW of electricity to the national grid and playing a significant role in
industrializing the nation.
 The investment will also industrialize and grow the economy through her operations
and that of her ancillary companies.
 Enhance the agriculture sector of the economy with adequate and affordable animal
feeds of about 770,000 tons annually ensuring food security in meat and related
agricultural products.
 Ensure national food security for sugar by providing over 1.3 million tons of refined
sugar for the Nigerian market.
 Give free electricity, water and other social amenities to the host communities.
 Ensure sustained and large contribution to the states IGR; and
 Partnering with surrounding higher institutions and research centers to improve the
country’s benefits of the entire sugarcane value chain.
 Contributing significantly to the NNPC ethanol PMS blending project for the auto
industry by supplying over 80 million liters of ethanol annually for the project.
  The local content programme of the project shall go a long way in ensuring effective
technology transfer and a generation of skilled Nigerian sugar technologists.
The sugarcane's will take approximately eight (8) months to mature for milling. The first
season shall be used to develop the sugarcane nursery while actual planting of the plantations
starts in the second year. Civil works and procurement of the milling / refinery equipment and
machinery shall commence immediately planting of the sugarcane nursery starts. The setting
up of the machinery and equipment will take about two (2) years. Consequently, the milling
plants and the refinery are expected to be ready by the second year when the sugarcanes from
the plantations shall be ready for milling. The sugar cane farm plantations shall be planted
appropriately to ensure adequate raw material at the commencement of refinery operations.

The investment indices show that the proposed DE-DYNAMICS is a cash cow, very
profitable, sustainable, socially acceptable and worth the resources and attention. The Return
on Investment (ROI) is about four (4) years considered good, while positive contribution on
job creation, national energy support, forex earnings, industrialization and economic growth
are all very positive.
The project is a win-win investment for all recommended for support and participation by all
relevant and necessary stakeholders.

OUR PROPOSAL
We proposed to acquire 150,000 hectares of land within the South Western States for
farming, for location of the refinery and staff estate and other ancillary units of the Refinery.
These surplus funds for the farms would enable us set up the farming logistics and acquiring
the suckers and planting
1. That this funding shall be 100%
2. The Equity sharing shall be 60% (investor, for life) and 40% (for project owners for life.)
3. That the project feasibility shall be reviewed and ensure that current estimates are used to
update the project budget.
4. The land to be acquired for the project, would have a Certificate of occupancy in the name
of the project.
5. A special purpose vehicle (SPV) called DE-DYNAMICS SUGAR REFINERY would bind
the partners for the project.
6. We propose to hold 40% of the equity for De-Dynamics and State Government and you the
investors retain 60% shareholding for Life, and De-Dynamics and state government would
hold 40% Equity for life.
7. The Mou would clarify the equity shareholding
. The proof of Funds from the investor provided for the project would activate the entire
process. After the first tranche of the funds enter the account of the SPV.

Thanks
De-Dynamics TEA Investments & Services Ltd.

Sam Ohwerhoye
Managing Director/CEO