Nomad lodges Amazonas by Nomad lodges

LUXURY

IS ELSEWHERE

SWISS ECOTOURISM CONCEPT

www.nomadlodges.com

PIERRE ANDRE KRUGER

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INDEX Our profile

IV.

Contribution to the local communities

The Amazon

The local communities

The South American spirit

The fair trade

Colombia

The activities

Investment

II.

The eco-tourism project

Environmental engagement

The concept

Social commitment

The project

Promotion

The infrastructure

Positioning

Nomad lodges Amazonas

Financial Plan

Calendar

III.

Eco-tourism

Our vision and mission

The sustainable development

The purchasing policy

PIERRE ANDRE KRUGER

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OUR PROFILE

Pierre-AndrĂŠ Kruger, specialized in luxury tailor-made travel to South America for more than 20 years created this project. We propose to investors the financial support of a new concept in eco-tourism, integrating the natural parks and indigenous communities. This project presents an alternative in Equitable Tourism conformed to meet the preservation of the Amazonian forest and itâ&#x20AC;&#x2122;s inhabitants. PIE R R E- A N D R E K R U G E R

PIERRE ANDRE KRUGER

THE AMAZON It is the largest tropical rainforest in the planet, creating 20% of the world’s oxygen and water. Its territory encompasses nine countries and more than seven millions square kilometers. The Amazon is also the “lung to the world” and the symbol of wealth in natural resources. Its future lies between the hands of the 15 millions inhabitants occupying the territory and on action plans aiming at the preservation of the natural reserve. Thus, sustainable development is implemented, it is a World’s concern.

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THE SOUTH AMER ICAN SPIR IT Known as the symbol of our natural resources, the Amazon had always been the inspirational core of the Latin South Americans. In museums and private collections of Peru or Colombia, we can observe that the Pre-Colombian art is mainly inspired by the Amazon. The Pre-Colombian civilization is basically focused on spiritual beliefs binding man to nature, indulging strong symbols of the Amazon wildlife such as the jaguar, monkey, snake or birds. The Amazon is also a population living by ancestral superstitious beliefs, which have long been gone in the Andes Cordillera.

PIERRE ANDRE KRUGER

OWL MONKEYS

SY M B O L O F PR E- IN C A C U LT U R E

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THE MONKEY NAZCA LINES

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COLOMBIA In Colombia, the Amazon represents more than 40% of the national territory. A country between the Pacific and Atlantic Ocean, it is strategically located between the Andes and Brazil. Colombia is one of the countries experiencing economic growth in Latin America, offering a greater potential to the development of tourism. The recent president prioritize the development of tourism and allowing foreign investments which stands out as the third source of revenue in the country. *** «Investors Can’t Get Enough Of Colombia» by Nicole Hong, The Wall Street Journal March, 11th 2014

Many investors have been stampeding out of emerging-market bonds, but they’re falling in love with Colombia. Investors have poured $622.5 million into Colombia’s bond market since the start of the year, the biggest inflow into any emerging-market country so far in 2014, according to fund flow tracker EPFR Global. Foreign ownership of Colombian bonds doubled last year Colombia’s bond market has much more room to mature than many of its Latin American peers. Colombia’s economic growth is also expected to pick up this year, with subdued inflation, a rarity among Latin American countries. Fitch Ratings and Standard & Poor’s both upgraded Colombia again last year.

PIERRE ANDRE KRUGER

LOCAL FAUNA AND FLOR A

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PIERRE ANDRE KRUGER

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11. THE ECOTOUR ISM PROJECT

After analyzing the potential of the Amazon and considering the strong political engagement in developping tourism in this region of Colombia, we foresee the Nomad lodges Amazonas project to be the best feasible investment opportunity in a luxurious ecotourism project, a niche still unexplored in the region.

PIE R R E- A N D R E K R U G E R

PIERRE ANDRE KRUGER

THE CONCEPT Having visited more than 300 lodges in South America and evaluating the advantages and inconveniences of each, it is clear that the project Nomad lodges Amazonas is the role model of an ecotourism based on preservation of natural reserves, teaching and respecting the local population and quality service. The project consist in investing on sutainable infrastructures, a teaching program to the local communities and promoting ecotourism nationally and internationally. After analysis followed by the different visits made in place, we define that the future infrastructure in the park should be able to accommodate a wide array of guests.

PIERRE ANDRE KRUGER

THE PROJECT All means will be gathered together in order to promote the Nomad lodges Amazonas project nationally and internationally by using the Amazon as a symbol of a new era for ecotourism in the world. Our investors will be more like donors. They will be part of a pioneering project in the heart of a powerful symbol of environmental protection. On the other hand, unlike passive donators, our investors will have the opportunity to visit the place, to invite their family and friends or guest-in, so that they can realize that through their support, a real preservation project of the Amazon is being developed in collaboration with the national parks and the indigenous communities. The projectâ&#x20AC;&#x2122;s investment is based on 5 million dollars reclaimed within 5 years with a recoup of 17% after the fifth year of operation.

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MODULAR CONSTRUCTION

PIERRE ANDRE KRUGER

N AT I V E W O O D S

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THE FOREST

PIERRE ANDRE KRUGER

THE INFR ASTRUCTUR E After several journeys made to this place, we have chosen a plot of 94 hectares near the Amacayacu National Park with 639 meters of river front and 1â&#x20AC;&#x2122;500 meters inside the forest. Six double bungalows for two couples or a family up to six people maximum (twin beds with an extra bed per room). The bungalows will be on a structure built on stilts overlooking the river and the forest.

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Two boats will transport guests rapidly and comfortably to the lodge with a floating platform intended for their boarding off. A foot bridge will give access to the main building’s reception, restaurant, bar and library. From this building, guests will be directed to their bungalow by walkways. The strategic location of the Amacayacu, at the center of the Amazon and bordering three countries helps the “birth” of ecotourism in the world.

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R AW MATER IALS AND LOCAL CR AF TMANSHIP

PIERRE ANDRE KRUGER

THE NOMAD LODGES AMAZON PROJECT

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THE BUNGALOWS

PIERRE ANDRE KRUGER

D E A D L E A F, A M A C A Y A C U N AT I O N A L PA R K

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A DESIGNED CHAIR

INSPIRED BY THE FOREST

PIERRE ANDRE KRUGER

NOMAD LODGES

A M A ZO N A S 9 4 H EC TA R E S

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recicling center

Ticuna reserve Villa Andréa

N ceiba center

kitchen stock

loundry Nomad SPA

staff

Ticuna reserve Santa Teresita

medical center

réception

Rio Loretoyacu @ pakruger - april 2014

NOMAD LODGES MASTER PLAN

PIERRE ANDRE KRUGER

SEAPLANE, ONE OF THE

M E A N S O F T R A N S P O R TAT I O N

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Bogota 02h00 COLOMBIE PNN Amacayacu BR ESIL Pto Narino

Fleuve Amazone

Letica

Manaus 02h30 Iquitos 02h00 PEROU

ACCESS PLAN OF

NOMAD LODGE AMAZONAS

PIERRE ANDRE KRUGER

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1 II .

ECOTOUR ISM

We believe that ecotourism is the solution to the preservation of the Amazon rainforest providing the local communities that inhabits these lands, the necessary input to the preservation of their culture and their environment.

PIE R R E- A N D R E K R U G E R

PIERRE ANDRE KRUGER

OUR V ISION AND MISSION We are confident that this project will be a model of the environmental preservation, replicable in other sensitive areas of our planet. We also hope that the cost efficiency of this project, will allow ecotourism to become a solution for an income to all regions of the country, the continent and the world, instead of less environmental awareness activities (mining, hydrocarbons, forestryâ&#x20AC;Ś). This new concept of ecotourism should also improve the collaboration between private companies, indigenous communities and public sector. To give prominent value for the indigenous culture and bring revenues to communities involved in the project and avoid rural exodus of younger population of the community.

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SUSTAINABLE DEV ELOPMENT All activities and infrastructure related to the project will be developed in respect of the environment as well as to the local culture and minimize the impact on nature. The materials used for construction will be selected based on its capacity to be recycled and their origin limiting to 1â&#x20AC;&#x2122;000 km with the ability to be transported by boat. We made a list of companies that match these criteria. The project will be using a maximum of renewable energy and will have a water treatment facility.

PIERRE ANDRE KRUGER

PURCHASING POLICY Seventy percent of the food will come from the indigenous communities, from a distance of less than 10 km. The rest will be transported by boat from the town of Leticia. Fifty percent of the construction materials used on the infrastructure and the common daily products will come from the town of Leticia, located at 70km by boat. Twenty-five percent of all the supplies will be coming from Iquitos, a city in Peru located at 300 km by the Amazon River and the rest from Manaus, a city in Brazil located at 1â&#x20AC;&#x2122;200 km by boat on the Amazon.

Navigating by the river is the most environmental friendly means of transportation.

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1200km

300km

IQUITOS Peru

70km LETICIA Colombia

MANAUS Brasil

PIERRE ANDRE KRUGER

MANAGING WATER CONSUMPTION

PIERRE ANDRE KRUGER

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I V CONTR IBUTION TO THE LOCAL COMMUNITIES

In the Amazon, the indigenous communities represent more than 45% of the local population. Ecotourism represents a way to value their culture, knowledge and their land. We need their cooperation for the development of ecotourism in the Amazon.

PIE R R E- A N D R E K R U G E R

PIERRE ANDRE KRUGER

THE LOCAL COMMUNITIES We guarantee the integration of local communities in the ecotourism project. In this context, we will offer members of the same communities a training plan and a regular income from the ecotourism project and the possibility of highlighting their ancestral knowledge. We will provide the resources needed to enhance the existing infrastructure in terms of comfort, recycling and access to drinkable water.

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SAN JUAN DEL SOCO

PIERRE ANDRE KRUGER

INDIGENOUS COMMUNITIES

PIERRE ANDRE KRUGER

FAIR TR ADE All means of preserving the environment and the local culture will be set up. The project will be educative, create jobs and help improve the life of six indigenous communities in the region. It will offer a stable economy based on a long-term, motivating younger generations of the community to remain in their native land and putting upfront their culture and the ÂŤknow-howÂť, taught by their ancestral. This local movement will avoid rural exodus of remote population, as well as the proliferation of companies such as mining, oil and forestry in these regions.

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The total revenue of the guided tours, handicraft sales or food consumption from their own â&#x20AC;&#x153;chagrasâ&#x20AC;? (garden) will be entirely returned to the local communities. As expected in the project, there will be 60 people from neighboring communities assigned to ensure the visits and the different tasks related in welcoming guests to the park. The total income of entrance fees will be received directly by the national park of Colombia. Project investors will receive the income generated by the sales from tourist arrangements, the overnight stay, from the consumption of food, beverages and boat transportations.

PIERRE ANDRE KRUGER

PRODUCTS FROM THE CHAGRAS

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SCALE FISHING

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ACTI V ITIES -Guided tours in the forest -Navigation along the forest during high-tide -Bird watching -Visiting indigenous communities -Cooking lesson -Visiting the Rehabilitation Centre of monkeys -Excursion at Tarapoto Lake -Craftsmanship lesson -Visiting the â&#x20AC;&#x153;chagrasâ&#x20AC;? - Initiation to the Tikuna culture - Traditional massages - Herbal local therapies - Yoga sessions

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A M AC AYAC U

N AT I O N A L PA R K

PIERRE ANDRE KRUGER

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V IN V ESTMENT PROPOSAL

The Nomad lodges Amazonas project offers you the opportunity to invest in a long-term protection of the Amazonian rainforest and contributes to the local communities with the pride of being associated to a new concept in ecotourism.

PIE R R E- A N D R E K R U G E R

PIERRE ANDRE KRUGER

EN V IRONMENTAL ENGAGEMENT I. II. III. IV. V. VI. VII. VIII. IX. X.

Purchasing policy and fluvial transportation Managing the rainwater and the water from the river Low consumption of non-renewable energy Energy compensation program Transportation compensation program Waste recycling program Environmental awareness program Cooperation with local associations Partnership with the National Parks of Colombia Partnership with the Ministry of Environment

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SOCIAL COMMITMENT I. II. III. IV. V. VI. VII. VIII. IX. X.

Educational Program Training Program Drinkable water provision Commuting plan provision Local product marketing and promotion Development of local culture Medical supply Social environmental awareness program Cooking lesson, promoting local organic products Elaboration of local herbal cosmetic products

PIERRE ANDRE KRUGER

PROMOTION We have developed a flexible ecotourism plan, marketing Nomad lodges Amacayacu internationally to a broad range of visitors. The concept is destined to a public who is interested in nature, local culture and searching for a flexible program according to their interest. The program includes a minimum of three nights and excursions in different parts of the park and the region. All efforts will be taken to promote ecotourism in the Amazonian region both nationally and internationally. Our goal is to set the Nomad lodges Amacayacu project as a global model of ecotourism and to value the spirit of the Amazon.

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LUXURY

IS ELSEWHERE

SWISS ECOTOURISM CONCEPT

www.nomadlodges.com

WEB PAGE

W W W.NOMADLOD GES.C OM

PIERRE ANDRE KRUGER

POSITIONING The launching of the new and exclusive product in the market demands a strong positioning. Therefore, the pricing is adequate to a clientele of a ÂŤsustainable luxury tourismÂť looking for exoticism, with a service and comfort matching their expectations. Opening price: Between USD 200. -- and USD 300. -- per person per night. A yearly increase of 10% in the price, for 3 years. Price after 3 years : Between USD 300,-- and USD 400,-- per person per night. To maximize sales, a commission of 25 % will be offered to ground handler agents in Colombia, 20% to foreign tour operators and 10% to travel agencies. The first 5 years, we estimate a sale of 50% through Colombian agents, 20% through foreign tour operators and 10% through travel agencies. As a result, the average net income per person per day will be USD 271.56. By imposing a strong image on the market, our aim is of course to increase direct sales and save costs commission estimated at 21% during the first 5 years.

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SALES STRUCTUR E Direct sales Travel agencies sales Foreign Touroperators sales Incoming agents sales

QUOTE 600 price per night clients per month

500

400 350 300

jan

fev

mar

avr

mai

jui

aou

sep

oct

nov

dec

PIERRE ANDRE KRUGER

IN V ESTING IN COLOMBIA The Heritage Foundation ranks Colombia as the 3rd emerging country in the world with the highest freedom in terms of economics, according to the “2013 Index of Economic Freedom”. A recent study made by the IMD ranks Colombia as the 3rd most competent country in South America. The arrival of foreign tourists in Colombia rose from 600 thousand in the year 2000 to 1.7 million in 2012, showing an average annual growth of 10%. This figure is three times higher than the world’s average, and is among the most impressive in the region. (Immigration Department of Colombia – Ministry of Trade, Industry and Tourism, 2013). The number of visitors expected in 2013 is more than 2 million. The potential tourism growth in Colombia is estimated to be twice the average of South America and three times greater than the rest of the world. The positioning of the government is clearly in favor of encouraging investments related to ecotourism with tax exemption for up to 30 years in the hospitality industry, positioning the country as the most interesting region in terms of investments.

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IN V ESTING IN TOUR ISM Tourism offers one of the best opportunities for Colombia to strengthen its economy. It also represent the best alternative of revenu in regions where the environement and the culture need to be preserved. Colombia’s tourism industry is dynamic and is growing at a fast pace. *** In 2013, Travel & Tourism’s total contribution to the global economy rose to 9.5% of global GDP (US $7 trillion), not only outpacing the wider economy, but also growing faster than other significant sectors such as financial and business services, transport and manufacturing. In total, nearly 266 million jobs were supported by Travel & Tourism in 2013 - 1 in 11 of all jobs in the world. The sustained demand for Travel & Tourism, together with its ability to generate high levels of employment continues to prove the importance and value of the sector as a tool for economic development and job creation. Travel & Tourism forecasts over the next ten years also look extremely favourable, with predicted growth rates of over 4% annually that continue to be higher than growth rates in other sectors. 9,5% of 2013 global GDP came from the tourism industry 4.4% of 2013 global investment came from the tourism industry 4% yearly is the growing forecast for the tourism industry Source : WTTC «Travel & Tourism economic impact 2014».

PIERRE ANDRE KRUGER

IN V ESTMENT Set up of the project within 15 month Searching for business partners Purchasing a plot of 96 hectares Analysis and preparation of legal aspects

USD 250’000,-USD 50’000,-USD 150’000,-USD 50’000,--

Investment on August 31st, 2014

USD 500’000,--

Basic construction of the infrastructure Promotional materials used (papers, web, ...) Supervision of the project for 6 months Travel expenses for 6 months

USD 1’200’000,-USD 50’000,-USD 30’000,-USD 20’000,--

First down payment

USD 1’800’000,--

Buying of two boats for transportation Staff training for 6 months Purchasing materials, decoration, equipment Invitation of press and travel agents

USD USD USD USD

Second down payment

USD 960’000,--

100’000,-120’000,-500’000,-240’000,--

Basic investment USD2’760’000,-Operational cost for the first 3 years Provision for 7months operation

USD 385’000,-USD 235’000,--

Total investment USD3’380’000,--

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investment dobles after 7 years

investment income

return on investment after 5 years

profitability after 2 years 31.12.2014

31.12.2021

31.03.2016 31.03.2023

PIERRE ANDRE KRUGER

Investment Operating result Net income Operating costs

1,5 Mio

1 Mio

0,5 Mio

0,5 Mio 1 Mio

1,5 Mio 2013 2016

2016 2020 2017 2018 2019 2014 2018 2015 2019 2017 2021 2022

2020 2023

2021 2024

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YEAR LY OPER ATIONAL COST Fixed cost : Staff expenses (reception, maintenance, etc…) USD 300’000,-Transportation USD 96’000,-Management fees USD 50’000,-Contingency fund USD 20’000,-Supply and working materials USD 9’600,-Total fixed cost :

USD 475’600,--

Variable cost (with 60% occupancy) : Food and Beverages Excursions National Park entrance fees Maintenance expenses Power consumption

USD 151’800,-USD 132’000,-USD 33’000,-USD 33’000,-USD 26’4 00,--

Total variable cost :

USD 376’200,--

Total operational cost :

USD 851’800,--

PIERRE ANDRE KRUGER

R EV ENUE Sale for a minimum of 3 nights stay includes: -ground and fluvial transfers, round trip -3 meals (breakfast, lunch and dinner) per night -2 excursions per night Launching price per person: January and February : USD 600,-December : USD 900,-Occupancy rate: 30% over 24 people Days of operation per year : 360

Year

Occupancy

1 2 3 4 5

30% 30% 40% 50% 60%

Average Rate 750 763 855 938 1’077

Revenue USD 190’000,-USD 610’000,-USD 840’000,-USD 1’150’000,-USD 1’570’000,--

After five years of activity, the investors will regain their investment. From year 6 the annual profit stabilized at USD 760’000.per year either an annual income of 17%.

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USD 1’570’000,--

net income

USD 1’150’000,--

USD 840’000,--

USD 610’000,--

USD 190’000,-2014

2015

2016

2017

2018

PIERRE ANDRE KRUGER

SHAR EHOLDER STUCTUR E Down payment and participations:

Pierre-A. Kruger Shareholder I Shareholder II Shareholder II Shareholder III Shareholder IV Shareholder IV

Management & Concept USD 900’000.- USD 450’000.- USD 450’000.- USD 225’000.- USD 90’000. - USD 90’000. -

51% 20% 10% 10% 5% 2% 2%

Income to shareholders : Free nights Shareholder I 20 nights Shareholder II 10 nights Shareholder III 5 nignts Shareholder IV 2 nights

Annual revenue after 5 years USD 150’000,-USD 75’000,-USD 37’500,-USD 15’000,--

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CALENDAR June 2012 September 2012 October 2012 November 2012 December 2012 January 2013 February 2013 March 2013 March 2013 June 2013 October 2013 October 2013 December 2013 January 2014 August 2014 October 2014 October 2014 November 2014 January 2015 March 2015 June 2015 October 2015 November 2015 December 2015 January 2016 February 2016 March 2016

First journey to Amacayacu (high-tide) Second journey to Amacayacu (low-tide) In contact with the Regional Authority Production of the initial project Production of the main project Finalizing the project Project presentation preparation Begining of legal agreements Begining of National Authorities contacts Site inspection Site inspection Site inspection Begining of Indigenous Authorities contacts Site inspection Site inspection (3 month) Finalizing the legal aspect Finalizing the contract with the Authorities Begining of the training with local people Design of the architectural project Beginning of the construction / training Work supervision / training Construction deadline / training End of training Soft opening (press) Soft opening (press) Soft opening (national) Soft opening Official opening

CONTACTS Nomad lodges projects www.nomadlodges.com

Carrera 4B ≠26A-40 Bogota -Colombia Tel. +57 304 418 26 87

Project Director Pierre-André Kruger pak@nomadlodges.com

W W W.n omadelo dge s.com

PI E R R E- A N D R E K R U G E R - AV R IL 2 014 - i n f o @ n o m a d l o d g e s . c o m