Energia Solar -Manaus

Eric Stivaleti Apr 2014

3
All Joy Volume
Objective
Glade Gel FY14 FY15 FY16 FY17 FY18 FY19
Floral Perfection 5,513,940 6,088,149 6,696,964 7,031,812 7,242,766 7,387,622
Toque de Maciez 5,565,960 6,145,586 6,760,145 7,098,152 7,311,096 7,457,318
Acqua 780,572 861,859 948,045 995,448 1,025,311 1,045,817
Citrus 563,612 622,305 684,536 718,762 740,325 755,132
Total (Units) 12,424,084 13,717,900 15,089,690 15,844,174 16,319,499 16,645,889
PROJECT ALL JOY
Given the successful launch of ALLJOY in Brazil and with many fold increase in Brazils volume the need to increase the capacity is
felt much sooner than later, To continue to service to the growing requirement and with the Brazil fiscal benefit the investment in
Brazil looks more suitable and benefited.
BRAZILIAN VOLUME EXPECTATION
4
Capacity Study
CAPACITY/YEAR
ALL JOY FY14 FY15 FY16 FY17 FY18 FY19
Utilization % (5d/wk) OEE=75% 67% 76% 81% 85% 89% 92%
Utilization % (5d/wk) OEE=85% 52% 58% 63% 66% 68% 71%
67%
76%
81%
85%
89%
92%
52%
58%
63%
66%
68%
71%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
FY14 FY15 FY16 FY17 FY18 FY19
Utilization % (5d/wk) OEE=75%
Utilization % (5d/wk) OEE=85%
Note: study based on speed line of 80units/min
5
Lay out
- Project of Brasilian line was be based on chinese sequence line to cover all
machinary specifications.
6
Lay out
- Install All joy line will impact in disassemble Sephora
line(rectangles in red) which must be discontinued.
7
Capital Analysis
Y1 Y5 Total
1 New Line 100 upm Automatic 85% 6 3.5 - 4.25 0 3.5 - 4.25 52 weeks
2 New Line 100 upm Manual 75% 16 2.7 - 3.3 0 2.7 - 3.3 52 weeks
3 New Line 75 upm Automatic 85% 6 3.5 - 4.25 0 3.5 - 4.25 52 weeks
4 New Line 75 upm Manual 75% 14 2.7 - 3.3 0 2.7 - 3.3 52 weeks
5
Retrofitted
Filler
100 upm Automatic 85% 6 3.3 - 4.0 0.4 3.7 - 4.4 49 weeks
6
Retrofitted
Filler
100 upm Manual 75% 16 2.5 - 3.05 0.4 2.9 - 3.45 49 weeks
Timeline (*)
Capital USD MM
Options Description Speed Line Type
OEE
target
# of
People
8
Capital Analysis
PROS CONS
Delivery timeline of a
retroffited machine is 3
weeks shorter(32
weeks) than a new
machine.
According Federal Legislation there is
only one option to import used
equipment, do a "Temporary
Importation License" valid per 5 years.
Cost is aprox. $150k
cheaper than a new
machine.
After "Temporary Importation
License" valid per 5 years SCJ must
consider buy a new filler and delivery
to origin the old one.
PROS CONS
Save of $1M in Manual
line option in
comparison of an
automatic line
Manual line has 75% OEE due to lunch
time. 10% less than automatic line
Manual line needs 16 operators per
shift while an automatic line needs 6
operators
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Appendix
9
Capital Investment
Evaluation
Scenario 1
Scenario 1
NPV (USD) 2,499
ROI% 49.9%
Year 1 2 3 4 5 6
Fixed Assets/Depreciation
Fixed Asset 1:
Price (Beg of Period) (1,200)
Book Life 10
End of Period (60) (120) (120) (120) (120) (660)
Terminal Value (End of Period) 0
Fixed Asset 2:
Price (Beg of Period)
Book Life 10
End of Period 0 0 0 0 0 0
Terminal Value (End of Period) 0
Incremental (Costs)/Savings (End of Period) - UNINFLATED
[ (-)=Cost , (+)=Savings ] Y1 Y2 Y3 Y4 Y5 Y6
Labor saving
Expenses saving 777 970 1,180 1,401 1,618 1,618
Material saving
Total (Costs)/Savings 777 970 1,180 1,401 1,618 1,618
Assumptions
Contributions Rate 1.0% 1.0% 1.0% 1.0% 1.0% 1.0%
Profit Sharing Rate 25.0% 25.0% 25.0% 25.0% 25.0% 25.0%
Tax Rate 23.20% 23.2% 23.2% 23.2% 23.2% 23.2%
Real Discount Rate 7.04%
Inflation (Annual - Over Life of Project)
Nominal Discount Rate 7.04%
Results/Analysis Y0 Y1 Y2 Y3 Y4 Y5 Y6
P & L Impact (End of Period) INFLATED
Incremental (Costs)/Savings 777 970 1,180 1,401 1,618 1,618
Depreciation (60) (120) (120) (120) (120) (660)
Contributions (7) (8) (11) (13) (15) (10)
Profit Sharing (177) (210) (262) (317) (371) (237)
Taxes (123) (146) (183) (221) (258) (165)
Total P&L Impact (NOE) 409 485 605 730 854 546
Cash Flow (All End of Period)
P&L Impact (NOE) 409 485 605 730 854 546
Add:Depreciation 60 120 120 120 120 660
NET PROFIT 469 605 725 850 974 1,206
Terminal Value 0 0 0 0 0 0
Investments (End of Period) (1,200)
Cash Flow (End of Period) (1,200) 469 605 725 850 974 1,206
NPV @ 7.04% 2,499
ROI 49.9%
GUESS used in ROI calculation 0.20 <- If ROI calculation yields a #NUM! message you can adjust this cell to attempt to achieve a result.
Annual Inflation 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Compound Inflation 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
POKER - Manaus
10
Scenario 2
NPV (USD) 2,357
ROI% 64.3%
Year 1 2 3 4 5 6
Fixed Assets/Depreciation
Fixed Asset 1:
Price (Beg of Period) (800)
Book Life 10
End of Period (40) (80) (80) (80) (80) (440)
Terminal Value (End of Period) 0
Fixed Asset 2:
Price (Beg of Period)
Book Life 10
End of Period 0 0 0 0 0 0
Terminal Value (End of Period) 0
Incremental (Costs)/Savings (End of Period) - UNINFLATED
[ (-)=Cost , (+)=Savings ] Y1 Y2 Y3 Y4 Y5 Y6
Labor saving
Expenses saving 678 847 1,032 1,225 1,416 1,416
Material saving
Total (Costs)/Savings 678 847 1,032 1,225 1,416 1,416
Assumptions
Contributions Rate 1.0% 1.0% 1.0% 1.0% 1.0% 1.0%
Profit Sharing Rate 25.0% 25.0% 25.0% 25.0% 25.0% 25.0%
Tax Rate 23.20% 23.2% 23.2% 23.2% 23.2% 23.2%
Real Discount Rate 7.04%
Inflation (Annual - Over Life of Project)
Nominal Discount Rate 7.04%
Results/Analysis Y0 Y1 Y2 Y3 Y4 Y5 Y6
P & L Impact (End of Period) INFLATED
Incremental (Costs)/Savings 678 847 1,032 1,225 1,416 1,416
Depreciation (40) (80) (80) (80) (80) (440)
Contributions (6) (8) (10) (11) (13) (10)
Profit Sharing (158) (190) (236) (283) (331) (242)
Taxes (110) (132) (164) (197) (230) (168)
Total P&L Impact (NOE) 364 438 543 653 762 557
Cash Flow (All End of Period)
P&L Impact (NOE) 364 438 543 653 762 557
Add:Depreciation 40 80 80 80 80 440
NET PROFIT 404 518 623 733 842 997
Terminal Value 0 0 0 0 0 0
Investments (End of Period) (800)
Cash Flow (End of Period) (800) 404 518 623 733 842 997
NPV @ 7.04% 2,357
ROI 64.3%
GUESS used in ROI calculation 0.20 <- If ROI calculation yields a #NUM! message you can adjust this cell to attempt to achieve a result.
Annual Inflation 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Compound Inflation 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
POKER - Manaus
Capital Investment
Evaluation
Scenario 2
11
Automatic Process
Description Cost USD Comments
Pamasol 448,966 Aerosol Line Adjustments (Entire Line)
Haumiller 402,500 Black Insert Inserter Equipment
Packer 34,500 Adjustments in the Equipment
Krones 57,500 Adjustments in the Equipment
Implementation Costs - Plant 63,000 Area preparation
Implementation Costs - Processing 24,000 Exausting System Upgrade (Acetone)
Materials for Test 20,000 FAT + SAT
Trip & Training 45,000 Training for Production & Maintanance
Contingency (10%) 109,547 Contigency
TOTAL 1,205,012
Manual Process
Description Cost USD Comments
Pamasol 448,966 Aerosol Line Adjustments (Entire Line)
Processo Manual 38,000 Black Insert Inserter Equipment
Packer 34,500 Adjustments in the Equipment
Krones 57,500 Adjustments in the Equipment
Implementation Costs - Plant 60,000 Area preparation
Implementation Costs - Processing 60,000 Exausting System Upgrade (Acetone)
Materials for Test 20,000 FAT + SAT
Trip & Training 45,000 Training for Production & Maintanance
Contingency (10%) 78,697 Contigency
TOTAL 842,662
Capital Breakdown
12
High Level Engineering Timeline
TASKS EWP Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7
Week
10
Week
11
Week
18
Week
19
Week
22
Week
23
Week
24
Week
25
Week
27
Week
28
Week
29
Week
30
Week
31
Week
36
Week
37
Week
38
Week
39
Week
40
Week
41
Week
42
Week
43
Week
44
Week
45
Week
46
Week
47
Week
48
Week
49
1. Concept Phase
2. Preliminary Design
MEA Approval
3. Detailed Desing
4. Construction
Pamasol
RC/PO
Construction
Ready to Ship + Transit
In house
Krones
RC/PO
Construction
Ready to Ship + Transit
In house
Packer
RC/PO
Construction
Ready to Ship + Transit
In house
Haumiller
RC/PO
Construction
Ready to Ship + Transit
In house
Conveyor for Assembly
RC/PO
Construction
In house
5. Startup
Comissioning
Qualification
Verification
After MEA approval it is necessary at least 11 months to start Verification
13