8/14/2019 Term Sheet Annona

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8/14/2019 Term Sheet Annona

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o Do the companys activities have a negative impact on the environment? Feasibility of the plan:

o Are there customers or traders who have shown real interest and are there long-termcontracts?

o Have small producers / suppliers been organised and are they reliable partners?o Is cooperation possible with organisations which could assist in the training of personnel,

farmers and/or other suppliers?

o Is the local investment climate positive? Do local governments support the plan?Is ownership recognised by the state?

o Are there sufficient natural resources for large-scale production?o Does the company have knowledge of the required technologies and machines and have these

been tested and found suitable for the local conditions (easy to operate and repair)?

o Do the entrepreneurs have experience and training with regard to the product, region andsector?

o Are there employees available who are already trained? Availability of capital and financial performances:

o Have all shareholders invested equity capital or are they prepared to do so?o Are other companies from the chain (buyers or suppliers) prepared to co-invest?o Are there other investors who are prepared to invest, such as banks, NGOs and investment

funds?

o Is the current debt rate limited and acceptable?o Is Annona being offered sufficient ownership and authority?

Scalability:o Is an investment of EUR 300,000 to 800,000 necessary?o Will the market and availability of raw materials and labour be sufficient to expand quickly?o Is the business concept easily extendable to other regions and countries, or other product

groups?

The investment process

1.Quick Scan plans can be put forward by matchmakers,

development organisations, but also directly by entrepreneurs,

or banks as well as other investment funds which need co-

investors.2. Assessment and Concept Note after the initial screening,

a Concept Noteis drawn up for assessing the plans withregard to the strength of the value chain.

3. Business Plan after the internal assessment of the Concept

Note, it is decided whether or not to proceed to the business

plan phase. This phase is preceded by the signing of a

Memorandum of Understanding with the entrepreneur in

question, setting out the framework for the subsequent phases.

Part of this phase is an e xtensive due diligence process and

market study.

4. Investment in the first three years, investments are made

from the start-up / growth fund. Subsequently, the growth

fund enables to continue investing in companies with growth

potential for another five years. After a period of eight years,

the companies which have been assigned both local and

external directors should be financially sound.

5. Expansion and assistance after a few years, a new

business plan is developed and presented to the Investment

Committee.6. Exit when a company starts operating in dependently, the

Annona Fund sells its shares, preferably to local parties. The

intention is to first offer the shares to the other shareholders.

Contact details of Fund Manager

Drs. ing. W.J.M. Executive Director Annona Sustainable Investment Fund B.V.

Mauritskade 63 1092 AD Amsterdam Telephone: +31 (0)20 568 8280 E-mail: info@annona.nl