Poultry Farming

Financial Model Template

Project name

Poultry Farm Valuation

Last updated
August 8th, 2016

Powered by

www.efinancialmodels.com
Disclaimer: eFinancialModels.com provides the template as is and assumes no liability for any eventual
mistakes within the model nor ommissions of it. All eventual data includes serves as example only and cannot
be relied upon. Each template needs to be adjusted for the individual project and customized by the user.
The user is self responsible to thoroughly review and adjust the model. However eFinancialModels.com
appreciates your feedback.

Confidential

Confidential 1 / 18 06/18/2019
 Poultry Farm Valuation August 8th, 2016
Confidential

Abbreviations

Input Cells
Calculations
Links from Other Sheets

Abbreviations

A Actual figures
CAPEX Capital Expenditures
CFF Cash Flow from Financing
CFI Cash Flow from Investments
CFO Cash Flow from Operation
COGS Cost of goods sold
DCF Discounted Free Cash Flows
DSCR Debt service coverage ratio (Debt Service / Free Cash Flow to Firm)
EBIT Earnings before interest and taxes
EBITDA Earnings before interest, taxes, depreciation and amortization
F Forecasted figures
FCFF Free Cash Flow to Firm (Unlevered cash flows)
G&A General & Admin
NPV Net Present Value
NWC Net Working Capital
OPEX Operating costs
ROIC Return on invested capital
t Tax rate %
TV Terminal Value
USD United States Dollar

x
Powered by

www.efinancialmodels.com

Confidential 2 / 18 06/18/2019
 Poultry Farm Valuation August 8th, 2016
Confidential

Executive Summary
All amounts in USD
Financial Projections Financial Overview
USD
Financials 2016 F 2017 F 2018 F 2019 F 2020 F
16000,000 100.0%
Revenues 90.0%
14000,000 Revenues USD 9,155,965 9,653,156 10,177,775 10,731,340 11,315,447
EBITDA 80.0%
12000,000 COGS USD (6,380,835) (6,730,103) (7,098,653) (7,487,548) (7,897,913)
70.0%
Gross Margin USD 2,775,130 2,923,052 3,079,123 3,243,792 3,417,534
10000,000 60.0%
Margin % % 30.3% 30.3% 30.3% 30.2% 30.2%
8000,000 50.0%
6000,000 40.0% OPEX USD (691,560) (699,532) (707,793) (716,358) (725,245)
30.0% EBITDA USD 2,083,571 2,223,521 2,371,330 2,527,433 2,692,290
4000,000
20.0% Margin % % 22.8% 23.0% 23.3% 23.6% 23.8%
2000,000 10.0%
,0 0.0% Net Income USD 1,216,427 1,298,894 1,386,548 1,476,376 1,565,711
2016 F

2017 F

2018 F

2019 F

2020 F

2021 F

2022 F

2023 F

2024 F

2025 F

Margin % % 13.3% 13.5% 13.6% 13.8% 13.8%

Revenue Breakdown
USD CAPEX USD (300,000) (300,000) (400,000) (490,000) (312,750)
Subsidies Frozen Chicken Fresh Chicken Dividends USD 0 0 (1,386,548) (1,476,376) (1,565,711)
Revenue growth % NA 5.4% 5.4% 5.4% 5.4%
Day old chicks Hatchery eggs
20000,000 ROIC % 20.3% 18.4% 19.0% 19.4% 19.9%
ROE % 20.1% 17.8% 17.4% 18.5% 19.7%
15000,000
Cash USD 197,880 1,189,000 795,408 330,647 71,100
10000,000 Financial Debt USD 575,000 450,000 325,000 200,000 75,000
Financial Debt/EBITDA x 0.28x 0.20x 0.14x 0.08x 0.03x
5000,000 DSCR x -4.26x 7.61x 7.89x 8.31x 10.86x
,0
Breeder flock # 10,000 10,500 11,025 11,576 12,155
2017 F

2019 F

2021 F

2023 F

2025 F
2016 F

2018 F

2020 F

2022 F

2024 F

Broiler chickens produced # 1,094,943 1,149,690 1,207,174 1,267,533 1,330,910

Meat produced kg 1,561,283 1,637,929 1,718,408 1,802,910 1,891,637

DCF Valuation Key Operational Metrics

Discount rate % 10.0% Hatchability 70%

Terminal Value Growth rate % 0.5% Mortality 10%
Enterprise Value USD 14,071,146 Feed conversion ratio 2.4x
Cash USD 1,000,000 Broiler average weight 1.40 kg
Financial debt USD (700,000)
Equity value USD 14,371,146

EV/EBITDA 2016 x 6.8x

# of Animals Operations
#
1800,000 Animals & Feed Breeder Chicken
Breeder flock Broilers produced Breeders # 2016 10,000 Eggs per Breeder # 150
1600,000
1400,000 Increase in breeder flock %/Year 5% Life expectation Weeks 55
1200,000 Hatchery eggs into hatchery % 80%
1000,000 Feed Hatchery eggs sold % 20%
800,000 Feed per Breeder Chicken kg 50.00 Total % 100%
600,000 Feed per Broiler Chicken kg 3.00 Hatchery eggs produced % 60%
400,000 Hatchery eggs purchased % 40%
200,000 Prices Total % 100%
,0
Hatchery eggs USD/Egg 0.50 Breeder weight kg/bird 3.00
Day old chick USD/Chick 0.80
2016 F

2017 F

2018 F

2019 F

2020 F

2021 F

2022 F

2023 F

2024 F

2025 F

Fresh chicken USD/kg 6.00 Day old chicks

Frozen chicken USD/kg 5.00 Rejected eggs % 1%
Prices Hatchability % 70%
USD Costs Day old chicks go into broiler % 90%
7.00 Breeder USD/Breeder 10.00 Day old chicks sold % 10%
6.00 Feed USD/kg 1.00 Total % 10%
Antibiotics, vaccination, nutriti USD/breeder 0.20
5.00
Antibiotics, vaccination, nutriti USD/broiler 0.10 Broiler Chicken
4.00 Processing cost USD/Bird 1.00 Day old chicks from hatchery % 95%
3.00 6.00 Packaging costs USD/kg 0.10 Day old chicks purchased % 5%
5.00 Transport costs USD/egg 0.10 Total % 100%
2.00
Transport costs USD/chick 0.10 Mortality rate % 10%
1.00 Transport costs USD/kg 0.10 Transport losses % 2%
0.50 0.80
0.00 Direct labour cost USD 50,000 Broiler weight kg 1.40 kg
USD/Egg USD/Chick USD/kg USD/kg Sold as fresh chicken % 70%
Hatchery Day old chick Fresh Frozen
eggs chicken chicken OPEX Sold as frozen chicken % 30%
Sales & Marketing USD 200,000 Total % 100%
Per kg analysis General & Admin USD 250,000
USD / kg Other operating costs USD 150,000 CAPEX
Provisions for doubtful receiva % 1.00% 2016 USD 100,000
7.00 2017 USD 100,000
EBIT
6.00 Subsidies 2018 USD 100,000
Depreciait
Yearly subsidies received USD 10,000 2019 USD 100,000
1.20 on
5.00 2020 USD 500,000
OPEX General Assumptions 2021 USD 100,000
4.00 Other Currency USD 2022 USD 100,000
Costs First year 2016 2023 USD 100,000
3.00 5.86 Direct Forecast period Years 30 2024 USD 100,000
labor 2025 USD 100,000
2.00 2.71
Day old Inflation Total 10 Years USD 1,400,000
1.00 chicks Cost Inflation % 0.50%
0.71 Feed Breeder % 0.50% Net Working Capital
0.00 Hatchery eggs % 0.50% Days Receivables Days Sales 60
Revenue Costs and Profit Day old chick % 0.50% Days Inventory Days COGS 60
Cumulative Free Cash Flows - FCFF Fresh chicken % 0.50% Days Payables Days COGS 30
USD Frozen chicken % 0.50% Other current assets Days Sales 3
14000,000
Cum. FCFF
Other current liabilities Days Sales 0
12000,000 Financial Interest, Taxes and Dividends
Debt Interest rate Term loan A % 4% Dividends
10000,000
Interest rate Term loan B % 6% Dividend of Net Income % 100%
8000,000
6000,000 Financing Depreciation
4000,000 Loan A Years 5 Trucks Years 8
Loan B Years 8 Equipment Years 10
2000,000
Machineries Years 10
,0 Loan A % split 60% Buildings Years 20
2019 F

2020 F

2021 F
2016 F

2017 F

2018 F

2022 F

2023 F

2024 F

2025 F

(2000,000)

Confidential 18 / 18 06/18/2019
 14000,000 Cum. FCFF
12000,000 Financial
10000,000 Debt

8000,000
6000,000
4000,000
2000,000
Poultry Farm Valuation August 8th, 2016
,0
Confidential

2019 F

2020 F

2021 F
2016 F

2017 F

2018 F

2022 F

2023 F

2024 F

2025 F
(2000,000) Loan B % split 40%
Balance Sheet Check 0.0
Taxes
Tax rate % 34%

Confidential 18 / 18 06/18/2019
 Poultry Farm Valuation August 8th, 2016
Confidential
All amounts in USD
Sensitivity Analysis
USD 000
Hatchability
Enterprise Value
Enterprise Value 75.00% 72.50% 70.00% 67.50% 65.00%
14,071,146 5.00% 2.50% 0.00% -2.50% -5.00%
TV Growth
15.00% 5.00%
Discount rate Min Max 12.50% 2.50%

Mortality
Hatchability 12,088,300 3,965,692 16,053,993 10.00% 0.00%
Mortality Weight 10,603,259 6,935,774 17,539,033 7.50% -2.50%
Price 701,295 26,739,702 27,440,997 5.00% -5.00%
Weight Price 3,731,416 20,679,461 24,410,877
Discount rate 12,390,884 3,783,181 16,174,065 Price per kg
Mortality
TV Growth 13,711,862 758,489 14,470,351 Enterprise Value 7.00 6.50 6.00 5.50 5.00

Broiler average
Enterprise Valu 13,789,723 562,846 14,352,569 14,071,146 1.00 0.50 0.00 -0.50 -1.00
Hatchability 1.60 kg 0.20 kg
1.50 kg 0.10 kg
20,000,000

40,000,000

50,000,000

60,000,000
10,000,000

30,000,000
0

1.40 kg 0.00 kg

weight
1.30 kg -0.10 kg
1.20 kg -0.20 kg

Output Discount rate

Inputs Add ons Step Enterprise Value 11.0% 10.5% 10.0% 9.5% 9.0%
Hatchability % 0 2.50% 14,071,146 1.0% 0.5% 0.0% -0.5% -1.0%
Terminal Value

Mortality % 0 2.50% 1.00% 0.50%

Growth rate

Price USD/kg 0 0.50 0.75% 0.25%

Weight kg 0 0.10 0.50% 0.00%
Discount rate % 0 0.50% 0.25% -0.25%
TV Growth % 0 0.25% 0.00% -0.50%

All amounts in USD

Chart Data

Operating Profitability
Revenue Costs and Profit
Revenue USD/kg 5.86
Processing USD/kg 0.71
Feed USD/kg 2.71
Day old chicks USD/kg 0.03
Direct labor USD/kg 0.03
Other Costs USD/kg 0.61
OPEX USD/kg 0.44
Depreciaiton USD/kg 0.14
EBIT USD/kg 1.20

Powered by

www.efinancialmodels.com

Confidential 18 / 18 06/18/2019
 Poultry Farm Valuation August 8th, 2016
Confidential

Forecast Year 0 1 2 3 4 5 6 7 8 9 10

All amounts in USD

VOLUMES Unit Closing 2016 F 2017 F 2018 F 2019 F 2020 F 2021 F 2022 F 2023 F 2024 F 2025 F

Breeders
Flock increase % 5% 5% 5% 5% 5% 5% 5% 5% 5%
Breeder flock # 10,000 10,500 11,025 11,576 12,155 12,763 13,401 14,071 14,775 15,513
Life expectation Weeks 55 55 55 55 55 55 55 55 55 55
Breeder Birds annualized # 9,455 9,927 10,424 10,945 11,492 12,067 12,670 13,303 13,969 14,667
Eggs per Breeder # 150 150 150 150 150 150 150 150 150 150
Hatchery eggs produced # 1,418,182 1,489,091 1,563,545 1,641,723 1,723,809 1,809,999 1,900,499 1,995,524 2,095,300 2,200,065
Hatchery eggs into hatchery % 80.00% 80.00% 80.00% 80.00% 80.00% 80.00% 80.00% 80.00% 80.00% 80.00%
Hatchery eggs sold % 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00% 20.00%

Hatchery eggs
Hatchery eggs sold # 283,636 297,818 312,709 328,345 344,762 362,000 380,100 399,105 419,060 440,013
Hatchery eggs (own production) % 60.00% 60.00% 60.00% 60.00% 60.00% 60.00% 60.00% 60.00% 60.00% 60.00%
Hatchery eggs purchased % 40.00% 40.00% 40.00% 40.00% 40.00% 40.00% 40.00% 40.00% 40.00% 40.00%
Hatchery eggs (own production) # 1,134,545 1,191,273 1,250,836 1,313,378 1,379,047 1,447,999 1,520,399 1,596,419 1,676,240 1,760,052
Hatchery eggs purchased # 756,364 794,182 833,891 875,585 919,365 965,333 1,013,600 1,064,280 1,117,494 1,173,368

Hatchery / Day old chicks

Hatchery eggs received # 1,890,909 1,985,455 2,084,727 2,188,964 2,298,412 2,413,332 2,533,999 2,660,699 2,793,734 2,933,421
Rejected eggs % 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00% 1.00%
Eggs put into the hatchery # 1,872,000 1,965,600 2,063,880 2,167,074 2,275,428 2,389,199 2,508,659 2,634,092 2,765,797 2,904,086
Hatchability % 70.00% 70.00% 70.00% 70.00% 70.00% 70.00% 70.00% 70.00% 70.00% 70.00%
Day old chicks # 1,310,400 1,375,920 1,444,716 1,516,952 1,592,799 1,672,439 1,756,061 1,843,864 1,936,058 2,032,860
Day old chicks go into broiler farm % 90.00% 90.00% 90.00% 90.00% 90.00% 90.00% 90.00% 90.00% 90.00% 90.00%
Day old chicks sold % 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Day old chicks go into broiler farm # 1,179,360 1,238,328 1,300,244 1,365,257 1,433,519 1,505,195 1,580,455 1,659,478 1,742,452 1,829,574
Day old chicks sold # 131,040 137,592 144,472 151,695 159,280 167,244 175,606 184,386 193,606 203,286

Broilers
Day old chicks from hatchery % 95.00% 95.00% 95.00% 95.00% 95.00% 95.00% 95.00% 95.00% 95.00% 95.00%
Day old chicks purchased % 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00%
Day old chicks from hatchery # 1,179,360 1,238,328 1,300,244 1,365,257 1,433,519 1,505,195 1,580,455 1,659,478 1,742,452 1,829,574
Day old chicks purchased # 62,072 65,175 68,434 71,856 75,448 79,221 83,182 87,341 91,708 96,293
Day old chicks put into the farm # 1,241,432 1,303,503 1,368,678 1,437,112 1,508,968 1,584,416 1,663,637 1,746,819 1,834,160 1,925,868

Mortality rate % 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00% 10.00%
Transport losses % 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%
Broilers produced # 1,094,943 1,149,690 1,207,174 1,267,533 1,330,910 1,397,455 1,467,328 1,540,694 1,617,729 1,698,615
Broiler weight kg 1.40 1.40 1.40 1.40 1.40 1.40 1.40 1.40 1.40 1.40
Feed conversion ratio x 2.4x 2.4x 2.4x 2.4x 2.4x 2.4x 2.4x 2.4x 2.4x 2.4x

Confidential 6 / 18 06/18/2019
 Poultry Farm Valuation August 8th, 2016
Confidential
Breeders end of life # 9,455 9,455 9,455 9,455 9,455 9,455 9,455 9,455 9,455 9,455
Breeder weight kg 3.0x 3.0x 3.0x 3.0x 3.0x 3.0x 3.0x 3.0x 3.0x 3.0x
Meat produced kg 1,561,283 1,637,929 1,718,408 1,802,910 1,891,637 1,984,801 2,082,623 2,185,336 2,293,184 2,406,425

Chicken products
Fresh % 70.00% 70.00% 70.00% 70.00% 70.00% 70.00% 70.00% 70.00% 70.00% 70.00%
Frozen % 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00% 30.00%
Fresh kg 1,092,898 1,146,551 1,202,885 1,262,037 1,324,146 1,389,361 1,457,836 1,529,735 1,605,229 1,684,498
Frozen kg 468,385 491,379 515,522 540,873 567,491 595,440 624,787 655,601 687,955 721,928

Feed
Feed per Breeder kg 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00
Feed per Broiler kg 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00
Required feed kg 4,224,295 4,435,509 4,657,285 4,890,149 5,134,657 5,391,389 5,660,959 5,944,007 6,241,207 6,553,268

Confidential 7 / 18 06/18/2019
 Poultry Farm Valuation August 8th, 2016
Confidential
All amounts in USD
Prices and Costs Unit Closing 2016 F 2017 F 2018 F 2019 F 2020 F 2021 F 2022 F 2023 F 2024 F 2025 F

Inflation
Cost Inflation % 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50%
Breeder % 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50%
Hatchery eggs % 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50%
Day old chick % 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50%
Fresh chicken % 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50%
Frozen chicken % 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50%

Prices
Hatchery eggs USD/Egg 0.50 0.50 0.51 0.51 0.51 0.51 0.52 0.52 0.52 0.52
Day old chick USD/Chick 0.80 0.80 0.81 0.81 0.82 0.82 0.82 0.83 0.83 0.84
Fresh chicken USD/kg 6.00 6.03 6.06 6.09 6.12 6.15 6.18 6.21 6.24 6.28
Frozen chicken USD/kg 5.00 5.03 5.05 5.08 5.10 5.13 5.15 5.18 5.20 5.23

Costs
Breeder USD/Breeder 10.00 10.05 10.10 10.15 10.20 10.25 10.30 10.36 10.41 10.46
Feed USD/kg 1.00 1.01 1.01 1.02 1.02 1.03 1.03 1.04 1.04 1.05
Antibiotics, vaccination, nutritients, etc USD/breeder 0.20 0.20 0.20 0.20 0.20 0.21 0.21 0.21 0.21 0.21
Antibiotics, vaccination, nutritients, etc USD/broiler 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10
Hatchery eggs USD/Egg 0.50 0.50 0.51 0.51 0.51 0.51 0.52 0.52 0.52 0.52
Day old chick USD/Chick 0.80 0.80 0.81 0.81 0.82 0.82 0.82 0.83 0.83 0.84
Processing cost USD/Bird 1.00 1.01 1.01 1.02 1.02 1.03 1.03 1.04 1.04 1.05
Packaging costs USD/kg 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10
Transport costs USD/egg 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10
Transport costs USD/chick 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10
Transport costs USD/kg 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10 0.10

Confidential 8 / 18 06/18/2019
 Poultry Farm Valuation August 8th, 2016
Confidential
All amounts in USD
Income Statement Unit Closing 2016 F 2017 F 2018 F 2019 F 2020 F 2021 F 2022 F 2023 F 2024 F 2025 F

Hatchery eggs USD 141,818 149,654 157,922 166,647 175,854 185,570 195,823 206,642 218,059 230,107
Day old chicks USD 104,832 110,624 116,736 123,186 129,992 137,174 144,752 152,750 161,190 170,095
Fresh Chicken USD 6,557,390 6,913,700 7,289,666 7,686,373 8,104,969 8,546,662 9,012,728 9,504,513 10,023,438 10,571,004
Frozen Chicken USD 2,341,925 2,469,178 2,603,452 2,745,133 2,894,632 3,052,379 3,218,831 3,394,469 3,579,799 3,775,358
Subsidies USD 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000
Revenues USD 9,155,965 9,653,156 10,177,775 10,731,340 11,315,447 11,931,785 12,582,135 13,268,374 13,992,487 14,756,564

Breeders USD (94,545) (99,769) (105,281) (111,098) (117,236) (123,714) (130,549) (137,762) (145,373) (153,405)
Feeds USD (4,224,295) (4,457,687) (4,703,974) (4,963,869) (5,238,123) (5,527,529) (5,832,925) (6,155,194) (6,495,268) (6,854,132)
Antibiotics, vaccination, nutritients, USD (126,034) (132,997) (140,346) (148,100) (156,282) (164,917) (174,028) (183,643) (193,790) (204,497)
Hatchery eggs USD (378,182) (399,076) (421,125) (444,393) (468,945) (494,854) (522,195) (551,046) (581,492) (613,619)
Day old chick USD (49,657) (52,401) (55,296) (58,351) (61,575) (64,977) (68,567) (72,355) (76,353) (80,571)
Processing cost USD (1,104,397) (1,164,940) (1,228,826) (1,296,238) (1,367,373) (1,442,436) (1,521,643) (1,605,225) (1,693,421) (1,786,488)
Packaging costs USD (156,128) (164,612) (173,563) (183,009) (192,975) (203,492) (214,589) (226,298) (238,653) (251,691)
Transport costs USD (197,596) (208,371) (219,740) (231,737) (244,395) (257,753) (271,847) (286,720) (302,414) (318,974)
Direct labor cost USD (50,000) (50,250) (50,501) (50,754) (51,008) (51,263) (51,519) (51,776) (52,035) (52,296)
COGS USD (6,380,835) (6,730,103) (7,098,653) (7,487,548) (7,897,913) (8,330,934) (8,787,863) (9,270,020) (9,778,800) (10,315,672)
Gross Margin USD 2,775,130 2,923,052 3,079,123 3,243,792 3,417,534 3,600,852 3,794,272 3,998,354 4,213,687 4,440,892
Gross Margin % % 30.3% 30.3% 30.3% 30.2% 30.2% 30.2% 30.2% 30.1% 30.1% 30.1%

Sales & Marketing USD (200,000) (201,000) (202,005) (203,015) (204,030) (205,050) (206,076) (207,106) (208,141) (209,182)
General & Admin USD (250,000) (251,250) (252,506) (253,769) (255,038) (256,313) (257,594) (258,882) (260,177) (261,478)
Other operating costs USD (150,000) (150,750) (151,504) (152,261) (153,023) (153,788) (154,557) (155,329) (156,106) (156,887)
Provisions for doubtful receivables USD (91,560) (96,532) (101,778) (107,313) (113,154) (119,318) (125,821) (132,684) (139,925) (147,566)
OPEX USD (691,560) (699,532) (707,793) (716,358) (725,245) (734,469) (744,048) (754,001) (764,349) (775,112)
EBITDA USD 2,083,571 2,223,521 2,371,330 2,527,433 2,692,290 2,866,383 3,050,224 3,244,353 3,449,338 3,665,780
EBITDA Margin % % 22.8% 23.0% 23.3% 23.6% 23.8% 24.0% 24.2% 24.5% 24.7% 24.8%

Depreciation USD (211,250) (231,750) (252,250) (277,750) (312,750) (338,888) (366,332) (395,148) (419,156) (448,114)
EBIT USD 1,872,321 1,991,771 2,119,080 2,249,683 2,379,540 2,527,495 2,683,892 2,849,205 3,030,182 3,217,666
EBIT Margin % % 20.4% 20.6% 20.8% 21.0% 21.0% 21.2% 21.3% 21.5% 21.7% 21.8%

Interest payment USD (29,250) (23,750) (18,250) (12,750) (7,250) (3,750) (2,250) (750) 0 0
EBT USD 1,843,071 1,968,021 2,100,830 2,236,933 2,372,290 2,523,745 2,681,642 2,848,455 3,030,182 3,217,666
EBT Margin % % 20.1% 20.4% 20.6% 20.8% 21.0% 21.2% 21.3% 21.5% 21.7% 21.8%

Tax rate % 34% 34% 34% 34% 34% 34% 34% 34% 34% 34%
Taxes paid USD (626,644) (669,127) (714,282) (760,557) (806,578) (858,073) (911,758) (968,475) (1,030,262) (1,094,007)
Net Income USD 1,216,427 1,298,894 1,386,548 1,476,376 1,565,711 1,665,672 1,769,884 1,879,980 1,999,920 2,123,660
Net Income Margin % % 13.3% 13.5% 13.6% 13.8% 13.8% 14.0% 14.1% 14.2% 14.3% 14.4%

Confidential 9 / 18 06/18/2019
 Poultry Farm Valuation August 8th, 2016
Confidential
All amounts in USD
Balance Sheet Unit Closing 2016 F 2017 F 2018 F 2019 F 2020 F 2021 F 2022 F 2023 F 2024 F 2025 F

Cash USD 1,000,000 197,880 1,189,000 795,408 330,647 71,100 1,569,799 1,394,992 1,211,915 1,045,114 869,106
Receivables USD 300,000 1,505,090 1,586,820 1,673,059 1,764,056 1,860,073 1,961,389 2,068,296 2,181,103 2,300,135 2,425,737
Inventory USD 300,000 1,048,904 1,106,318 1,166,902 1,230,830 1,298,287 1,369,469 1,444,580 1,523,839 1,607,474 1,695,727
Other current assets USD 50,000 75,255 79,341 83,653 88,203 93,004 98,069 103,415 109,055 115,007 121,287
Fixed Assets USD 4,850,000 4,938,750 5,007,000 5,154,750 5,367,000 5,367,000 5,367,000 5,367,000 5,367,000 5,367,000 5,367,000
Assets USD 6,500,000 7,765,879 8,968,480 8,873,771 8,780,735 8,689,464 10,365,727 10,378,283 10,392,912 10,434,729 10,478,856

Payables USD 300,000 524,452 553,159 583,451 615,415 649,144 684,734 722,290 761,919 803,737 847,863
Other current liabiliites USD 50,000 0 0 0 0 0 0 0 0 0 0
Financial debt USD 700,000 575,000 450,000 325,000 200,000 75,000 50,000 25,000 0 0 0
Equity USD 5,450,000 6,666,427 7,965,321 7,965,321 7,965,321 7,965,321 9,630,993 9,630,993 9,630,993 9,630,993 9,630,993
Liabilities & shareholder's equity USD 6,500,000 7,765,879 8,968,480 8,873,771 8,780,735 8,689,464 10,365,727 10,378,283 10,392,912 10,434,729 10,478,856
Check 0 0 0 0 0 0 0 0 0 0 0

All amounts in USD

Cash Flow Statement Unit Closing 2016 F 2017 F 2018 F 2019 F 2020 F 2021 F 2022 F 2023 F 2024 F 2025 F

Cash Flow from Operations (CFO)

Net income USD 1,216,427 1,298,894 1,386,548 1,476,376 1,565,711 1,665,672 1,769,884 1,879,980 1,999,920 2,123,660
Addback interest USD 29,250 23,750 18,250 12,750 7,250 3,750 2,250 750 0 0
Depreciation USD 211,250 231,750 252,250 277,750 312,750 338,888 366,332 395,148 419,156 448,114
Change in receivables USD (1,205,090) (81,730) (86,239) (90,997) (96,018) (101,316) (106,907) (112,807) (119,032) (125,602)
Change in inventory USD (748,904) (57,414) (60,583) (63,928) (67,457) (71,182) (75,112) (79,259) (83,635) (88,253)
Change in other current assets USD (25,255) (4,086) (4,312) (4,550) (4,801) (5,066) (5,345) (5,640) (5,952) (6,280)
Change in payables USD 224,452 28,707 30,292 31,964 33,729 35,591 37,556 39,629 41,818 44,127
Change in other current liabilities USD (50,000) 0 0 0 0 0 0 0 0 0
CFO USD (347,870) 1,439,870 1,536,205 1,639,365 1,751,164 1,866,337 1,988,658 2,117,802 2,252,275 2,395,765

Investing Cash Flow (CFI)

CAPEX USD (300,000) (300,000) (400,000) (490,000) (312,750) (338,888) (366,332) (395,148) (419,156) (448,114)
CFI USD (300,000) (300,000) (400,000) (490,000) (312,750) (338,888) (366,332) (395,148) (419,156) (448,114)

Cash Flow from Financing

Change in Financial debt USD (125,000) (125,000) (125,000) (125,000) (125,000) (25,000) (25,000) (25,000) 0 0
Interest charges USD (29,250) (23,750) (18,250) (12,750) (7,250) (3,750) (2,250) (750) 0 0
Equity financing USD
Dividends USD 0 0 (1,386,548) (1,476,376) (1,565,711) 0 (1,769,884) (1,879,980) (1,999,920) (2,123,660)
CFI USD (154,250) (148,750) (1,529,798) (1,614,126) (1,697,961) (28,750) (1,797,134) (1,905,730) (1,999,920) (2,123,660)

Change in Cash USD (802,120) 991,120 (393,593) (464,761) (259,547) 1,498,700 (174,808) (183,076) (166,801) (176,008)

Confidential 10 / 18 06/18/2019
 Poultry Farm Valuation August 8th, 2016
Confidential
Cash beginning USD 1,000,000 197,880 1,189,000 795,408 330,647 71,100 1,569,799 1,394,992 1,211,915 1,045,114
Cash end of year USD 1,000,000 197,880 1,189,000 795,408 330,647 71,100 1,569,799 1,394,992 1,211,915 1,045,114 869,106

Confidential 11 / 18 06/18/2019
 Poultry Farm Valuation August 8th, 2016
Confidential
All amounts in USD
DCF Valuation Unit Closing 2016 F 2017 F 2018 F 2019 F 2020 F 2021 F 2022 F 2023 F 2024 F 2025 F

Discounted Free Cash Flows (DCF)

EBIT USD 1,872,321 1,991,771 2,119,080 2,249,683 2,379,540 2,527,495 2,683,892 2,849,205 3,030,182 3,217,666
Adjusted Tax (1-t) USD (636,589) (677,202) (720,487) (764,892) (809,043) (859,348) (912,523) (968,730) (1,030,262) (1,094,007)
Addback depreciation USD 211,250 231,750 252,250 277,750 312,750 338,888 366,332 395,148 419,156 448,114
Change in NWC USD (1,804,797) (114,523) (120,843) (127,511) (134,547) (141,972) (149,808) (158,076) (166,801) (176,008)
CAPEX USD (300,000) (300,000) (400,000) (490,000) (312,750) (338,888) (366,332) (395,148) (419,156) (448,114)
Free Cash Flow to Firm (FCFF) USD (657,815) 1,131,795 1,130,000 1,145,030 1,435,949 1,526,175 1,621,561 1,722,399 1,833,119 1,947,651
Terminal Value USD 20,501,593
Discount rate % 10.00%
Terminal Value Growth rate % 0.50%
Enterprise Value (NPV) USD 14,071,146

Cum. FCFF USD (657,815) 473,980 1,603,981 2,749,011 4,184,960 5,711,135 7,332,696 9,055,095 10,888,214 12,835,865

All amounts in USD

Debt Schedule Unit Closing 2016 F 2017 F 2018 F 2019 F 2020 F 2021 F 2022 F 2023 F 2024 F 2025 F

Loan A
Term Years 5
Interest rate % 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00%
Repayment % / Loan amount % 20.00% 20.00% 20.00% 20.00% 20.00% 0.00% 0.00% 0.00% 0.00% 0.00%

Financial Debt
Beginning of year USD 500,000 400,000 300,000 200,000 100,000 0 0 0 0 0
Drawdown USD
Repayment USD (100,000) (100,000) (100,000) (100,000) (100,000) 0 0 0 0 0
End of year USD 500,000 400,000 300,000 200,000 100,000 0 0 0 0 0 0
Average debt outstanding USD 450,000 350,000 250,000 150,000 50,000 0 0 0 0 0
Interest USD 18,000 14,000 10,000 6,000 2,000 0 0 0 0 0

Loan B
Term Years 8
Interest rate % 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00% 6.00%
Repayment % / Loan amount % 12.50% 12.50% 12.50% 12.50% 12.50% 12.50% 12.50% 12.50% 0.00% 0.00%

Financial Debt
Beginning of year USD 200,000 175,000 150,000 125,000 100,000 75,000 50,000 25,000 0 0
Drawdown USD
Repayment USD (25,000) (25,000) (25,000) (25,000) (25,000) (25,000) (25,000) (25,000) 0 0
End of year USD 200,000 175,000 150,000 125,000 100,000 75,000 50,000 25,000 0 0 0
Average debt outstanding USD 187,500 162,500 137,500 112,500 87,500 62,500 37,500 12,500 0 0

Confidential 12 / 18 06/18/2019
 Poultry Farm Valuation August 8th, 2016
Confidential
Interest USD 11,250 9,750 8,250 6,750 5,250 3,750 2,250 750 0 0

Totals
Change in Financial Debt USD 0 (125,000) (125,000) (125,000) (125,000) (125,000) (25,000) (25,000) (25,000) 0 0
Financial Debt (year end) USD 700,000 575,000 450,000 325,000 200,000 75,000 50,000 25,000 0 0 0
Interest USD 0 29,250 23,750 18,250 12,750 7,250 3,750 2,250 750 0 0

Confidential 13 / 18 06/18/2019
 Poultry Farm Valuation August 8th, 2016
Confidential
All amounts in USD
Key Financial Ratios Unit Closing 2016 F 2017 F 2018 F 2019 F 2020 F 2021 F 2022 F 2023 F 2024 F 2025 F

Loan A / EBITDA x 0.19x 0.13x 0.08x 0.04x 0.00x 0.00x 0.00x 0.00x 0.00x 0.00x
Loan B / EBITDA x 0.08x 0.07x 0.05x 0.04x 0.03x 0.02x 0.01x 0.00x 0.00x 0.00x
Financial Debt / EBITDA x 0.28x 0.20x 0.14x 0.08x 0.03x 0.02x 0.01x 0.00x 0.00x 0.00x

Debt Service Coverage x -4.3x 7.6x 7.9x 8.3x 10.9x 53.1x 59.5x 66.9x NA NA
EBIT/Interest x 64.0x 83.9x 116.1x 176.4x 328.2x 674.0x 1192.8x 3798.9x NA NA

Current Ratio x 5.4x 7.2x 6.4x 5.5x 5.1x 7.3x 6.9x 6.6x 6.3x 6.0x
Days Receivables Days 60 60 60 60 60 60 60 60 60 60
Days Inventory Days 60 60 60 60 60 60 60 60 60 60
Days Payables Days 30 30 30 30 30 30 30 30 30 30

Revenue growth % NA 5.4% 5.4% 5.4% 5.4% 5.4% 5.5% 5.5% 5.5% 5.5%
EBITDA Margin % 22.8% 23.0% 23.3% 23.6% 23.8% 24.0% 24.2% 24.5% 24.7% 24.8%
ROIC % 20.3% 18.4% 19.0% 19.4% 19.9% 20.7% 21.6% 22.5% 23.5% 24.5%
ROE % 20.1% 17.8% 17.4% 18.5% 19.7% 18.9% 18.4% 19.5% 20.8% 22.1%
Revenues/Assets x 1.2x 1.1x 1.1x 1.2x 1.3x 1.2x 1.2x 1.3x 1.3x 1.4x
Invested Capital USD 5,150,000 7,043,547 7,226,320 7,494,913 7,834,673 7,969,221 8,111,193 8,261,001 8,419,077 8,585,879 8,761,887

All amounts in USD

Operating Profitability Unit Closing 2016 F 2017 F 2018 F 2019 F 2020 F 2021 F 2022 F 2023 F 2024 F 2025 F

Revenue USD/ kg 5.86 5.89 5.92 5.95 5.98 6.01 6.04 6.07 6.10 6.13
Processing USD/ kg (0.71) (0.71) (0.72) (0.72) (0.72) (0.73) (0.73) (0.73) (0.74) (0.74)
Feed USD/ kg (2.71) (2.72) (2.74) (2.75) (2.77) (2.78) (2.80) (2.82) (2.83) (2.85)
Day old chicks USD/ kg (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) (0.03)
Direct labor USD/ kg (0.03) (0.03) (0.03) (0.03) (0.03) (0.03) (0.02) (0.02) (0.02) (0.02)
Other Costs USD/ kg (0.61) (0.61) (0.62) (0.62) (0.62) (0.63) (0.63) (0.63) (0.64) (0.64)
Gross Profit USD/ kg 1.78 1.78 1.79 1.80 1.81 1.81 1.82 1.83 1.84 1.85
OPEX USD/ kg (0.44) (0.43) (0.41) (0.40) (0.38) (0.37) (0.36) (0.35) (0.33) (0.32)
EBITDA USD/ kg 1.33 1.36 1.38 1.40 1.42 1.44 1.46 1.48 1.50 1.52
Depreciaiton USD/ kg (0.14) (0.14) (0.15) (0.15) (0.17) (0.17) (0.18) (0.18) (0.18) (0.19)
EBIT USD/ kg 1.20 1.22 1.23 1.25 1.26 1.27 1.29 1.30 1.32 1.34
Interest USD/ kg (0.02) (0.01) (0.01) (0.01) (0.00) (0.00) (0.00) (0.00) - -
Taxes USD/ kg (0.40) (0.41) (0.42) (0.42) (0.43) (0.43) (0.44) (0.44) (0.45) (0.45)
Net Income USD/ kg 0.78 0.79 0.81 0.82 0.83 0.84 0.85 0.86 0.87 0.88

Confidential 14 / 18 06/18/2019
 Poultry Farm Valuation August 8th, 2016
Confidential
All amounts in USD
Fixed Asset Schedules Closing 2016 F 2017 F 2018 F 2019 F 2020 F 2021 F 2022 F 2023 F 2024 F 2025 F

CAPEX Plan
Trucks # 20,000 20,000 20,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000
Equipment # 30,000 30,000 30,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000
Machineries # 50,000 50,000 50,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000
Buildings # 200,000 200,000 300,000 300,000 122,750 148,888 176,332 205,148 229,156 258,114
Total # 300,000 300,000 400,000 490,000 312,750 338,888 366,332 395,148 419,156 448,114

Trucks
Depreciation period Years 8
CAPEX # 20,000 20,000 20,000 40,000 40,000 40,000 40,000 40,000 40,000 40,000
Fixed Assets (Gross) # 50,000 70,000 90,000 110,000 150,000 190,000 230,000 270,000 310,000 350,000 390,000

Depreciation Schedule
Closing # 50,000 6,250 6,250 6,250 6,250 6,250 6,250 6,250 6,250 0 0
2016 F # 20,000 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500 0
2017 F # 20,000 2,500 2,500 2,500 2,500 2,500 2,500 2,500 2,500
2018 F # 20,000 2,500 2,500 2,500 2,500 2,500 2,500 2,500
2019 F # 40,000 5,000 5,000 5,000 5,000 5,000 5,000
2020 F # 40,000 5,000 5,000 5,000 5,000 5,000
2021 F # 40,000 5,000 5,000 5,000 5,000
2022 F # 40,000 5,000 5,000 5,000
2023 F # 40,000 5,000 5,000
2024 F # 40,000 5,000
2025 F # 40,000
Depreciation # 6,250 8,750 11,250 13,750 18,750 23,750 28,750 33,750 32,500 35,000
Accumulated depreciation # 0 6,250 15,000 26,250 40,000 58,750 82,500 111,250 145,000 177,500 212,500
Fixed Assets (Net) # 50,000 63,750 75,000 83,750 110,000 131,250 147,500 158,750 165,000 172,500 177,500

Equipment
Depreciation period Years 10
CAPEX # 30,000 30,000 30,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000
Fixed Assets (Gross) # 300,000 330,000 360,000 390,000 440,000 490,000 540,000 590,000 640,000 690,000 740,000

Depreciation schedule
Closing # 300,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000 30,000
2016 F # 30,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000
2017 F # 30,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000
2018 F # 30,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000
2019 F # 50,000 5,000 5,000 5,000 5,000 5,000 5,000
2020 F # 50,000 5,000 5,000 5,000 5,000 5,000
2021 F # 50,000 5,000 5,000 5,000 5,000
2022 F # 50,000 5,000 5,000 5,000

Confidential 15 / 18 06/18/2019
 Poultry Farm Valuation August 8th, 2016
Confidential
2023 F # 50,000 5,000 5,000
2024 F # 50,000 5,000
2025 F # 50,000
Depreciation # 30,000 33,000 36,000 39,000 44,000 49,000 54,000 59,000 64,000 69,000
Accumulated depreciation # 0 30,000 63,000 99,000 138,000 182,000 231,000 285,000 344,000 408,000 477,000
Fixed Assets (Net) # 300,000 300,000 297,000 291,000 302,000 308,000 309,000 305,000 296,000 282,000 263,000

Machineries
Depreciation period Years 10
CAPEX # 50,000 50,000 50,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000
Fixed Assets (Gross) # 1,000,000 1,050,000 1,100,000 1,150,000 1,250,000 1,350,000 1,450,000 1,550,000 1,650,000 1,750,000 1,850,000

Depreciation schedule
Closing # 1,000,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000
2016 F # 50,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000
2017 F # 50,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000
2018 F # 50,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000
2019 F # 100,000 10,000 10,000 10,000 10,000 10,000 10,000
2020 F # 100,000 10,000 10,000 10,000 10,000 10,000
2021 F # 100,000 10,000 10,000 10,000 10,000
2022 F # 100,000 10,000 10,000 10,000
2023 F # 100,000 10,000 10,000
2024 F # 100,000 10,000
2025 F # 100,000
Depreciation # 0 100,000 105,000 110,000 115,000 125,000 135,000 145,000 155,000 165,000 175,000
Accumulated depreciation # 0 100,000 205,000 315,000 430,000 555,000 690,000 835,000 990,000 1,155,000 1,330,000
Fixed Assets (Net) # 1,000,000 950,000 895,000 835,000 820,000 795,000 760,000 715,000 660,000 595,000 520,000

Buildings
Depreciation period Years 20
CAPEX # 200,000 200,000 300,000 300,000 122,750 148,888 176,332 205,148 229,156 258,114
Fixed Assets (Gross) # 1,500,000 1,700,000 1,900,000 2,200,000 2,500,000 2,622,750 2,771,638 2,947,969 3,153,118 3,382,274 3,640,387

Depreciation schedule
Closing # 1,500,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000 75,000
2016 F # 200,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000
2017 F # 200,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000
2018 F # 300,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000
2019 F # 300,000 15,000 15,000 15,000 15,000 15,000 15,000
2020 F # 122,750 6,138 6,138 6,138 6,138 6,138
2021 F # 148,888 7,444 7,444 7,444 7,444
2022 F # 176,332 8,817 8,817 8,817
2023 F # 205,148 10,257 10,257
2024 F # 229,156 11,458
2025 F # 258,114

Confidential 16 / 18 06/18/2019
 Poultry Farm Valuation August 8th, 2016
Confidential
Depreciation # 0 75,000 85,000 95,000 110,000 125,000 131,138 138,582 147,398 157,656 169,114
Accumulated depreciation # 0 75,000 160,000 255,000 365,000 490,000 621,138 759,719 907,118 1,064,774 1,233,887
Fixed Assets (Net) # 1,500,000 1,625,000 1,740,000 1,945,000 2,135,000 2,132,750 2,150,500 2,188,250 2,246,000 2,317,500 2,406,500

Land
Fixed Assets (Net) # 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000

Totals
CAPEX # 300,000 300,000 400,000 490,000 312,750 338,888 366,332 395,148 419,156 448,114
Gross Fixed Assets # 5,150,000 5,450,000 5,850,000 6,340,000 6,652,750 6,991,638 7,357,969 7,753,118 8,172,274 8,620,387
Depreciation # 211,250 231,750 252,250 277,750 312,750 338,888 366,332 395,148 419,156 448,114

Net Fixed Assets

Trucks # 50,000 63,750 75,000 83,750 110,000 131,250 147,500 158,750 165,000 172,500 177,500
Equipment # 300,000 300,000 297,000 291,000 302,000 308,000 309,000 305,000 296,000 282,000 263,000
Machineries # 1,000,000 950,000 895,000 835,000 820,000 795,000 760,000 715,000 660,000 595,000 520,000
Buildings # 1,500,000 1,625,000 1,740,000 1,945,000 2,135,000 2,132,750 2,150,500 2,188,250 2,246,000 2,317,500 2,406,500
Land # 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000
Net Fixed Assets # 4,850,000 4,938,750 5,007,000 5,154,750 5,367,000 5,367,000 5,367,000 5,367,000 5,367,000 5,367,000 5,367,000

Powered by

www.efinancialmodels.com

Confidential 17 / 18 06/18/2019