In jawa business plan

InJaWa

InJaWa water systems by EcoRise・Japan

Table of contents

• InJaWa Product Explanation ・Reverse Osmosis (RO) System P.2 ・RO Membrane fundamentals P.3 ・Explanation of the system P.4

• InJaWa Distinctions ・RO membranes P.5 ･Housing P.6 ･The need for pre-disposal P.7 ･Pre-processing filter P.8 ･Active carbon filter P.9 ･Patent product “Ike-lite” P.10 ･Trademark registration document P.11 ･Pressurisation water pump P.12 • Business Development in India ･Indian economic conditions P.13 ･Drinking water situation in India P.14 • About The Indian Water Purifier Market P.15 ･Internet usage in India P.17 ･Online sales volume P.19

• Contribution to Society P.20 ・Cooperation NGO – “Eco  Friends” P.21 ・Authorisation Of JICA P.22 ・Assembly Operation Through The Indian NGO P.23 • Purification Diagram Of A Well and Outdoor Water Source P.25 ･Water intake tank P.26 ･Hand operation pump P.27 ･High-pressure pump P.28 ･Sponge materials P.29

• To Investors P.31

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InJaWa Product Explanation Reverse Osmosis (RO) System

Reverse Osmosis  (RO)  was  developed  in  the  late  1950’s  under  U.S.  Government  funding, as a method of desalinating seawater. Reverse osmosis occurs when the water is moved across the membrane against the concentration gradient, from lower concentration to higher concentration. To illustrate, imagine a semi-permeable membrane with fresh water on one side and a concentrated aqueous solution on the other side. If normal osmosis takes place, the fresh water will cross the membrane to dilute the concentrated solution. In reverse osmosis, pressure is exerted on the side with the concentrated solution to force the water molecules across the membrane to

the fresh water side.

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RO Membrane Fundamentals

Reverse  Osmosis  (RO)  was  developed  in  the  late  1950’s  under  the  U.S.  Government’s  Internal  Affairs funding. The University of Florida, California and companies such as Dupont and Kodak combined their forces, knowledge and expertise over a period of 5 years (using $75 million of funding - present day calculation $223 million), as a method of desalinating seawater. * By the end of 1960, sea-water to fresh-water plants started using this RO filter technology. *In the 1970s, fishing boats, passenger boats, navy ships and other vessels realised the benefits of RO systems and had them installed on-board. *  In  1981,  NASA  space  shuttle  ‘Columbia’  was  equipped  with  an  on-board RO circulation drinking water system. * NASA, the NAVY, PKOs (Peace Keeping Operations), the IOC (International Olympic Committee) and various countries Governments use RO-technology for sea water to clean water production. Also, medical facilities for kidney disease dialysis and laboratories due to its reliability level during testing. As you can see, RO technology is in on-going use all over the world in every country, in every kind of industry, in some form or other.

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Explanation of the system

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Our system uses 4-Stage Purification Technology 1. Unique Active Carbon Fibre filter 2. Patented "Ike-lite" filter 3. RO membrane 4. Addition Mineral filter

1 2

3

4

RO membrane

ERJ home-use system Drain

Needle valve

Unique active carbon fibre filter

Patented "Ike-lite" filter

Pressurisation water pump

ERJ home-use system image

The American  RO  membrane  technique  ‘worldwide  patent’  time-limit expired, enabling makers around the world to use the process, however thus producing various levels in standards of quality. Through collaboration with a Government-registered technology company, we selected the best films to filter raw water, according to every type of water quality found on earth. Without having overconfidence in our purification ability compared to other manufacturers, we asked independent testing facilities to perform various tests - these are the results;

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InJaWa Distinctions RO membranes

Element of the existing makers Flat sheet element

separation system Structural drawing

Various RO membranes removal examination report cards

Housing

Brackish water and sea water use

Vessel drawing for brackish water membrane, seawater water conversion membrane

General household use Both RO membrane and pre-filter housing, with our uniquely designed service pressure of 200psi.

Brackish water and sea water use * Effective operating pressure of brackish water membrane 220psi ~ 580psi * Effective operating pressure of desalination water membrane 450psi～800psi so we designed our original housing to surpass a service pressure of 1,000psi.

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Vessel drawing for home RO membrane

General household use

The need for pre-disposal

Water includes various viruses and pathogens. Arsenic, iodine, cesium-dioxin and seawater can all be filtered. However, due to these bad conditions of raw water, clogging occurs in the filters causing reduced non-purification. If filtering Japanese tap-water, it is possible to use the system for 5 or more years without any problems. Yet, if an RO membrane was installed in China, it may only last for one month. ‘Scaling’  of  organic  matters  such  as  metal  ions  and  chlorine  are  cited  as  one  of  the   weaknesses of RO membranes. Due to this, before these matters surge the RO membrane, these particles are removed thus raising water purification efficiency and helping to extend the RO membrane life. Since the  state  of  Indian  tap  water  is  very  poor,  you  can  understand  how  important  “pre- disposal”  filtration  is  required  within  the  water  filter  system  process.

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Pre-processing filter

The pre-processing filter includes 350g of coconut shell active carbon and 350g of our Japan-Patented Ike-lite. The active carbon absorbs residual chlorine and organic matters, while the Ike-lite absorbs the inorganic ion particles. Especially for these elements, we designed and developed a "one-of-a-kind openable housing" that enables the end-user to be able to exchange (empty & refill) the active carbon and Ike-lite components by themselves (refill bags sold separately). This unique ability allows each person to be in control of their own water purification performance and also reduces high filter-exchange costs. By periodically refilling these 'removal agents', one can constantly maintain the highest level of water purification. Ike-lite once every two weeks and active carbon once a month, will keep things at the optimum level of water purification. RO membrane filter exchange is recommended at least once a year. (Replacement times may vary depending on the quality of the water in the region where the systems are used, please refer to the InJaWa web site and Instruction Manual for more details.)

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Active carbon filter

As previously mentioned, the active carbon filter removes organic matters and chlorine components in raw water. Trihalomethane is a chemical substance produced during water purification by the reaction of organic matters with chlorine found in water. Not only is this harmful to the human body but it also lowers the quality of the RO membrane, that is why the active carbon is such a vital component to have in a filtration system

We use coconut shell active carbon, which has the highest adsorption-level available, and is able to maintain the highest purification of raw water. (By adjusting the amount of active carbon, helps to maintain the maximum efficiency of the system, as water-type varies from region to region.)

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X-rays analysis Examination report card

Trihalomethane removal rate by the active carbon

Patent product “Ike-lite”

• Ilke-lite Especially for India, we collaborated with Ikeda Industries in order to prepare the patent for "Ike-lite". Using our patented Ike-lite in the filter system, enables non-organic ions to be removed from raw water. That is a huge advantage and this alone, differentiates InJaWa systems over every other manufacturer in the world.

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Measurement report results Material Safety Data Sheet (MSDS)

Ike-lite : forms its shape to the quality of the water

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Ike-lite Trademark registration document

Pressurisation water pump

• Relevance of pressure and flow rates Pressure pumps used in household water purifiers in India often only have 60psi. Due to this, the water purification time normally takes approximately 4 hours. In order to efficiently pump purified water, we use a 100psi pump - approximately 1.6 times faster than a regular pump. Theoretically, RO membranes have their maximum efficiency potential when high pressure is applied.

• Also, in order to boost the local economy, we will be establishing local companies to

assemble the systems, as well as using local products to make the whole system. Not only will this lower overall costs, but we will help grow the local economy, as well.

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Business Development in India Indian economic conditions

India's population and landmass are both approximately 9 times that of Japan. It is a country that is accomplishing remarkable development and this year had an economic growth rate of 5.42%. Income structure has also increased over the last ten years and the average disposable income has grown from 0.4% in 2000 to 1.5% in 2010, and in 2015 it is expected to be 3.2%. Disposable income is around $35,000 for the wealthy but still only about $5,000 for the younger generation. Low-income earners plummeted from 93.7% in 2000 to 53.4% in 2010, and is forecast to be 37.2% in 2015. The biggest change is within the middle class that has grown from 5.1% to 49.6% - 0.8% growth is of the higher middle classes (earning more than $15,000 per year), whilst the lower middle class (earning more than $5,000) is up to 10%. Significant change in the economic structure has been taking place. However, maintenance of the core infrastructure still remains extremely weak - average water supply usage time is 4.3 hours per day in approximately 80% of urban areas (Government of Japan, Ministry of Health, Labour and Welfare report). In addition to this, contamination by bacteria is common as it enters through the ageing water pipes. This makes purchasing drinking water a necessity, not just in low-income homes but affluent households, too. Income bracket (household disposable income) Wealthy class (US$35,000 and above) Upper middle class (US$15,000 up to 35,000) Lower middle class (US$5,000 up to 15,000) Low income class (less than US$5,000) Upper middle class : Be able to purchase a privately-owned car Lower middle class Be able to purchase a motorcycle Ratio at each Income Level Wealthy class (US$35,000 and above) Upper middle class (US$15,000 up to 35,000) Lower middle class (US$5,000 up to 15,000) Low income class (less than US$5,000)

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Drinking water circumstances of India • The Japanese Government's Ministry of Foreign Affairs states the following regarding the drinking water situation in India: http://www.mofa.go.jp/mofaj/toko/medi/asia/india.html "India has a poor water situation, as water is supplied for only a few hours each day. Therefore many homes pool water in a tank. However, tap water is often contaminated from damage in the water pipes. And since tanks are easily contaminated, it is not safe to drink water out of the faucet. In addition to this, in many areas water pipes and sewage pipes run next to each other, so sewage may possibly mix with tap water due to the fact that either/both of the tubes are damaged. That is often the case, as we regularly see epidemics such as cholera and typhoid fever. In December 2010, the Delhi Water Authority checked the tap water from all faucets in each household that had water, and found bacteria in one of every five houses."

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City State

Water service diffusion rate and water supply time in the city

Population

Water service diffusion rate

water supply time

Ahmedabad Gujarat Amritsar Punjab Bangalore Karnataka Balpur Madhya Pradesh Chandigarh Chandigarh Chennai Tamil Nadu Coimbatore Tamil Nadu Indore Madhya Pradesh Jabalpur Madhya Pradesh Jamshedpur Jharkhand Kolkata West Bengal Mathura Uttar Pradesh Mumbai Maharashtra Nagpur Maharashtra Nashik Maharashtra Rajkot Gujarat Surat Gujarat Varanasi Uttar Pradesh Vijayawada Andhra Pradesh Visakhapatnam Andhra Pradesh 20 city average

About The Indian Water Purifier Market As you are fully aware, India's home-use  “water  purification  market”  is  having   continuous excellent growth. The Associated Chambers of Commerce and Industry of India (ASSOCHAM) predicts that the 2015 market sales will reach INR 70,000,000,000 - this shows the immense size of the present market and future potential. The attached data clearly shows this evidence, as can been seen with Ion Exchange (India) Ltd. and Tata Chemicals Ltd.'s business records. This is not only visible with domestic manufacturers but the continued growth of overseas companies entering the massive Indian market. Home- use systems are a very attractive commodity and an easy-to-sell product. Ion Exchange (India) Ltd. Achievements change Sales EBITDA EBITDA Margin Operating income Sales Percentage Net Profit rate Total assets Ratio of net worth Interest-bearing debt balance

Tata Chemicals Limited Achievements change

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Ion Exchange (India) Ltd. 2012 Sales 7,216,000,000×15％＝1,082,400,000INR（Water purifier sales） 1,082,400,000÷16,990（average unit price ）＝63,708台（2012 Sales number prediction）

Presently, mainly Internet sales (with some mail-order and store purchases) are the base of such huge sales in India. However, with the support of JICA and the NGO, publicity of you helping (volunteering) to clean the wells in India - using our utilised technology based on international standards - will be huge National and International recognition, thus resulting in enormous business sales. Popular India manufacturer recommended sales prices （mail-order prices） ・Ion Exchange (India) Ltd. (*See below) ・KENT RO Systems Ltd. MRP: INR 16,500～57,000 （INR 13,065～54,000） ・Eureka Forbes Ltd. : INR 10,499～20,999 （INR 9,690～20,999） ・Hindustan Unilever Limited (HUL) : INR 10,990～20,990 （INR 10,500～18,290） ・Expert Water Solutions Private Limited : INR 11,200～15,500（INR 6,118～10,000） ・Tata Swach : INR 13,999～16,999（INR 12,500～16,999） ・Aquaguard : INR （INR 13,990～16,490） ・Aquagrand : INR 14,999～15,999（INR 5,99～6,999） ・Apex : INR 13,900～14,490（INR 5,050～5,555） ・Luminous Water Technologies Pvt. Ltd : INR 18,000 （INR 15,500) ・Electrolux The RO membrane market alone with Ion Exchange, Eureka Forbes, Kent RO and Hindustan Unilever (who combined, total approx. 70% of the market) has reached INR 10,000,000,000 ~ Their units sell from between INR 5,000 ~ 40,000. *Ion Exchange (India) Ltd. ZeroB MRP:INR 36,990～15,295 Price Size Tank Flow Rate

Wave INR 15,295.00 50GPD 7L 5～7L/H Sapphire INR 17,490.00 60GPD 6L 5～7L/H Pristine INR 17,750.00 100GPD 10L/H Emerald INR 17,990.00 75GPD 6L 8～10L/H Kitchenmate INR 18,450.00 50GPD 8L 8L/H Ultimate INR 18,990.00 100GPD 10L/H eco RO INR 21,490.00 *80GPD 10L/H Intello INR 36,990.00 75GPD×2or3 15-25L/H Skid INR 25,990.00 75GPD×2or3 ～ For business use

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Internet usage in India • Reports made in 2013 show the overall Internet usage in India to be a mere 15.8% of the

population (1,252,000,000). In urban areas this is higher, however still only approximately 28% of residents (195,250,000). The 2016 Internet usage rate in urban areas is expected to increase 1.7 times to 47%.

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Online sales volume

This graph shows global online shopping sales per country. E-commerce being the highest in China, then Germany, South Korea and India*, followed by the United Kingdom. It should be noted that particular areas where online sales is increasing rapidly are India, Brazil, Russia, Indonesia, Mexico and Vietnam. * Presently only 15.8% of the population have Internet access, yet India already has #3 in the world - future growth potential will be #1 *

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Store sales development

On the other hand, even if store sales volume is lower than Internet sales, 43 Indian companies have already expressed interest in InJaWa. With effective advertising, Internet sales will grow through their websites, plus store sales and mail-orders will also result in high sales volume.

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Agency

Indian NGO (employment-

related)

EcoRise・ Japan

Delivery supplier

EcoRise・India Indian corporation

Water purifier delivery

Assembling, delivery of goods

Mail order Mail order Store merchandising

Used clothing sales

Delivery supplier

Material shipment

Development

Indian NGO (Water-related) Purification of the

pollution well Advertising

Cooperation

JICA

Wholesale

Domestic sales Sale in Bangladesh

Contribution to Society • We have already fulfilled well water purification in Bangladesh. Therefore, with this

knowhow and the support of the NGO, we will provide clean water to Indian rural areas that have poor or no water supply.

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System set-up in Bangladesh Activity with the NGO in Bangladesh

Arsenic concentration measurement of the well

Examination of water data in Bangladesh

Arsenic Arsenic Iron Manganese Water hardness Chloride ion Turbidity Electric conductivity

Cooperation NGO – “Eco  Friends”

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Indian NGO – “ECO  FRIENDS”

Chromium laced yellow-green water coming out of a hand pump in Noraiakheda.

Kids afflicted with various skin problems caused by water

Authorization Of JICA

• About JICA JICA (Japan International Cooperation Agency) unitarily works with the Japanese Government ODA as their implementing body relating to international cooperation in developing countries around the world. They assist in choosing the most suitable aid methods for various situations in various countries. According to these various difficulty situations, they are problem-solvers, assisting in the overall implementation of grants to the appropriate places.

This business has already received JICA authorisation. Being a JICA-approved resourcing business is a significant achievement (after their intense investigation and research), as it confirms future grants from the Japanese Government and their support leading to country- to-country ODA business.

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Assembly Operation Through The Indian NGO

• While jointly saving on shipping costs and import duties - as only necessary parts, instead

of the final product will be sent - we will not only be able to help lower final sales prices to boost business, but with the procurement of high quality pumps and active carbon that are available in India, this will revitalise regional economies and the promotion of employment, too.

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Mr. Chandrani arrived in Japan 33 years ago, setting-up 'Japan Business Services' that specialised in the import and sales of Indian black tea, and assisted in opening two international Indian primary schools that have over 800 students. In addition to this, he is the sponsor of the NPO supporting lower-income families that we will use in the assembly program of InJaWa products in India.

Working women stand in a tea plantation of Mr.Chandrani

Because of his continued support for women to help them become independent by giving them work in his tea plantations (but this is only seasonal work), Mr. Chandrani strongly wishes to tie-up with our business in order to give these local women and children peace-of-mind that they can finally have a steady income and a real life.

Using the NGO's large networks (of building schools, low-income workers and sending bicycles from Japan), to start local business will also help the economy. As an example, rather than simply sending clothing as giveaway donations, starting a Recycled Revenue Centre (initially with much needed clothing) employing people to promote this business. And due to India's unreliable infrastructure and unstable transportation services, getting locals to be responsible for InJaWa product deliveries when commercial services are not available, will add better customer service and therefore better business profits. By using the NGO's community-based networks will help to improve the overall life of the Indian people. This will also contribute to the promotion of the working population, thus becoming a high level social contribution to business overall.

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People gathering in front of the NGO in search of work

The age-specific unemployment rate

Urban area Rural area

Purification Diagram Of A Well and Outdoor Water Source

India's water situation is extremely critical. Data shows that all local conditions are as such, however this is much more realistic and apparent when the well-situation crisis is seen with your own eyes. Our (EcoRise・Japan) dedication to India, is that no matter how dirty or contaminated the water is, clean water purification is guaranteed. Suppressing the clogging of the RO membrane, in order to extend its life is a vital part of the system. That is why two-layer pre-filtration before the water intake tank is essential and also reduces the load on the RO membrane, as only then can total combined-purification be possible due to the severe conditions of the water in India. In addition, we developed a manual pump (Patent-pending*) for places that have no electricity or functioning water supply, that puts out 800psi pressure necessary to purify sea water through the membrane. * We are filing for Patents in India for our Manual Pump and Ike-lite * We already have a proven track record in Bangladesh in cooperation with the local NGO, using a water intake tank and RO membrane to purify well water contaminated with arsenic and heavy metals. This was even when the NGO's test results showed the well-water's arsenic concentration to be more than 7 times the maximum limit. Again, this shows the necessity and capability of pre-filtration by water intake tank, enabling purification of any type of water and extending the durability of the RO membrane.

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Water intake tank

Specifications in Bangladesh Arsenic density (ppb)

EC (µS/cm)

Experiment well water 300~330 3700 RO membrane clean water 20 200 RO membrane discharge water 300 4400

Adsorption filtration

building stones

Ester-based sponge filter

Ether-based urethane filter

Urethane strainer

Active carbon volume relates to water contamination level

Adsorption filtration stones

Outlet for sludge and tank cleaning

Structural image of water intake tank

Silicate stones Cheesecloth Porous materials

Hand operation pump The brackish (sea water) membrane requires pressure of 800psi in order for purification through this special membrane. Manual pumps producing this much pressure are not readily available in the world. Our Patented in Japan (Patent-pending in India) manual pump is able to achieve purification of any kind of water according to any scenario.

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Original image of hand operation pump Actual hand operation pump

High-pressure pump

Locations with electricity will use a high-pressure motor. Maximum discharge 7Mpa（1,015psi） Effective operating pressure of the brackish water membrane is 220psi ~ 580psi, while the sea water membrane is 450psi ~ 800psi. When the required output water pressure is 580psi ~ 800psi (i.e. using a pressure washer), by using the unit's spout and installing our developed multi-coupler, it is also possible to attach and use the system.

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Couplers corresponding to various makers

Hydracell motor type G03 Low flow ability, high pressure capacity

Sponge materials Ether type CF sponge filter Known for its flexibility, excellent resilience and ability to remain chemically-stable even with constant usage. It is especially effective with oils (including easily wetted swollen solvents). Even though strength may decrease when it is swollen, there is no chemical degradation and it fully recovers when dry. It is predominant with chemical properties such as chemical resistance, and even more effective than an MF filter for acids (especially nitric acid), alkalis, caustic soda and hydrochloric acid. Ether type MF sponge filter Excellent for oil resistance and with outstanding strength against tension, the MF filter has even higher heat resistance than the CF filter. These sponges have the most effective results when purifying natural raw water.

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To Investors We are inviting investors to purchase 100 to 5,000 units of the distribution rights for this household RO membrane water purifier, at 20,000 yen per unit (consumption tax 1,600 yen separate). In return, we are offering these principal returns; Every product purchased is numbered and yields your initial investment, plus a 3,000 yen commission once sold, plus (see the following "Adjustment conditions" pages)

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Unit price 20,000 yen (consumption tax 1,600 yen) 21,600 yen in total 3,000 yen sales commission per unit sold Image of

"InJaWa" water purifier made by ERJ

Delivery

Product sale Investors

Price payment

Capital and commission EcoRise ・Japan Co. Ltd.

Adjustment condition Option 1: In the case of 100 – 500 units Every product purchased is numbered and yields your initial investment, plus a 3,000 yen commission once sold. Option 2: In the case of 501 – 5,000 units For investors who purchase 500 or more units of distribution rights, there is an additional incentive; not only the above initial investment and sales commission once sold, but also a permanent maintenance commission on any and all thereafter purchased active carbon, Ike-lite and filters by customers. (Ike-lite · 350g x 24 times/year @ 500 yen per 8.4kg bag + active carbon · 350g x 12 times/year @ 500 yen per 4.2kg bag + RO membrane exchange @ 500 yen/filter = 1,500 yen per unit/year) In view of the dire conditions of the water situation in India, we predict a repeat rate of more than 90%. Option3: In the case of 5,001+ units In respect to a one-time purchase of 5,001 or more units of distribution rights, further sales will be suspended. Returns; The initial investment will be used to purchase products again once they have been sold. Therefore returns will be as follows; 1) the 3,000 yen sales commission per unit sold 2) principal from your initial investment of 5,001+ units 3) permanent maintenance commission of 10,002 (or more, depending on initial purchase) units i.e. Principal 20,000 yen + commission 6,000 yen (3,000 x 2 units) x 5,001 units = 130,026,000 yen return on 100,000,000 yen investment PLUS Permanent maintenance commission of 1,500 yen/year for 10,002 (or more, depending on initial purchase) units: 1,500 yen x 10,002 units x 90% (repeat rate) = 13,502,700 yen per year commission paid while the water purifier is used.

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4

¥20,000 x Quantity

¥23,000 x Quantity Investors

Investors

¥20,000 x Quantity

¥23,000 x Quantity ＋ (¥1,500 x Quantity x 90％ x Permanently)

Investors

¥20,000 x 5,001 units

(¥3,000＋¥23,000) x 5,001 ＋ (¥1,500 x 10,000 x 90％ x Permanently)

Unit sales x 23,000 yen = your return

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Sales target 500 units

100 units x 23,000 yen = 2,300,000 yen

Sales preparation in India

Development production

Contract 3 months later

9 months later

12 months later

6 months later

Sales target 700 units

Sales target 1,000 units

Sales target 100 units

500 units x 23,000 yen = 11,500,000 yen

700 units x 23,000 yen = 16,100,000 yen

1,000 units x 23,000 yen = 23,000,000 yen

First year maintenance commission Unit sales x 90％ repeat rate x 1,500 yen ＝2,300 units x 90％ x 1,500 yen ＝ 3,105,000 yen

Sales commission of 3,000 yen will be paid up to 5,000 units 2,300 units x 3,000 yen ＋ 3,105,000 yen ＝ 10,005,000 yen

Unit sales x 23,000 yen＝ 500 units x 23,000 yen＝ 11,500,000 yen

Total payment amount of the first year Unit sales x 23,000 yen ＋maintenance commission ＝2,300 units x 23,000 yen ＋ 3,105,000 yen ＝ 56,005,000 yen

Your return for 2,300 units: 3,000 yen × 2,300 units ＝ 6,900,000 yen

Sales commencement

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Sales target 2,000 units

15 months later

21 months later

24 months later

18 months later

Sales target 2,500 units

Sales target 3,000 units

Sales target 1,500 units

Second year maintenance commission Unit sales x 90％ repeat rate x 1,500 yen＋ last  year’s  commission = 2,700 units x 90％ x 1,500 yen＋3,105,000 yen

= 6,750,000 yen (5,000 units x 90％ x 1,500 yen) This will continue to be paid for as long as the water purifier is used.

Second year profit （Remaining units from last year） x 23,000 yen＋ maintenance commission = 2,700 units x 23,000 yen＋3,645,000 yen＋3,105,000 yen

= 68,850,000 yen （Total 124,855,000 yen) Third year onwards (maintenance commission)

6,750,000 yen （Total 131,605,000円）

In the case of 5,000 units

1,500 units x 23,000 yen = 34,500,000 yen

Remaining 1,200 units x 23,000 yen = 27,600,000 yen

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Sales target 2,000 units

15 months later

21 months later

24 months later

18 months later

Sales target 2,500 units

Sales target 3,000 units

Sales target 1,500 units

Second year profit For up to 5,001 units - payment of 3,000 yen sales commission From 5,002 units - principal investment 20,000 yen + 3,000 yen sales commission (2,701 units x 3,000 yen) ＋(5,001 units x 23,000 yen) + 13.501,500 yen

= 136,627,500 yen （Total 146,632,500 yen） Third year onwards (maintenance commission)

13,501,500 yen（Total 160,134,000 yen）

Second year maintenance commission Unit sales x two x 90％ repeat rate x 1,500 yen＋last  year’s  commission = 7,702 units x 90％ x 1,500 yen＋3,105,000 yen

= 13,501,500 yen (10,002 units x 90％ x 1,500 yen) This will continue to be paid for as long as the water purifier is used.

2,500 units x 23,000 yen = 57,500,000 yen

Remaining 1,702 units x 23,000 yen = 39,146,000 yen

1,500 units x 3,000 yen = 4,500,000 yen

Next 799 of 5,000 units x 23,000 yen = 18,377,000 yen

Remaining 1,201 units x 3,000 yen = 3,603,000 yen

In the case of 5,001 units

Implementation Plan Please be aware that after initial purchasing payment, it takes approximately three months to have the products made. During that time we will establish a company in India, in order to proceed from the India-side. We also expect about a 3 month timeframe to have everything organised. (The company formation process in India takes time, as it is in joint cooperation with JICA.) These preparations are essential and we expect them to take approximately 6 months to make full adjustment. Due to this 6-month preparation time, sales are expected to start after 7 months. From these promotions, we are expecting powerful and quick-impact publicity, resulting in good sales results. However, we have only set a sales goal of at least 1,000 units within the first year of business. Be aware that payment of sales commissions (3,000 yen/unit) will be performed quarterly. (Simultaneously, we will commence sales in Japan following the 11th March 2011 disaster to assist people here, too.) Rather than sending monthly/quarterly sales reports to each investor, in order for you to always know the status of your invested capital, all units are numbered and we have developed a software program that keeps up-to-date statistics on units sold. We will send you all web site log-in information, so you can browse at ease.

Selling overseas with the purpose of changing the water system process and water cleanliness for the whole of India (and other third- world countries) is our goal. This is a long and dedicated and very worthwhile project that requires a lifetime commitment by all – we hope you are in this with us.

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