PROFILE

I. INTRODUCTION

Most Latin-American countries, such as Peru, are characterized for presenting poorly structured goods and financial markets making their economic development costly. This fact among others -i.e. political environment- has been preventing them to advance their economies according to their possibilities in the global world economy. Such significant inefficiencies present important profit opportunities; however, they come along with equally significant risks. Effective management of those risks will allow such profit opportunities to materialize with the consequent economic improvement.

In addition most of these economies present -if existent- weak manufacturing industries. This fact has been mostly addressed only as a disadvantage or “economic liability” for such economies’ growth. In a more global and environmental conscious world economy such lack of industrialization can also be considered a raw asset that can facilitate their way to sustainable development, by leapfrogging developed economies industrialization experiences and learning from their mistakes, while developing the manufacturing capabilities that best fit in “the global economy”.

PRM is a Peruvian leading pioneer organization in pursuing and handling innovative risk management approaches under a sustainability framework with the objective to enhance local -Peruvian territoryinvestment project’s proper financing, and operational success likelihood. By the application of such a comprehensive system approach to projects’ financing and operations, subsequent benefits for all stakeholders -investors, customers, employees, society, environment, natural resources among others- are obtained fostering local, regional and national “healthy economic development”.

II.

PRM VALUE PROPOSITION

Through the fully assessment of the project’s business value chain and understanding it as an integrated system built into a bigger system -i.e. local economy- PRM’s approach makes easier to wholly identify and prioritize all relevant existing risks that, along with the appropriate mitigation, transferring and financing strategies make possible the parties involved to better understand the benefits and costs associated with the project. This way, risks can be allocated to the parties (i.e. primary investors, insurance companies, capital markets, among others) better suited to deal with them, making the whole project (system) more efficient / less expensive, therefore, more attractive to all stakeholders under a long-term perspective.

PRM approach is unique because of the operational competencies and management skills of the professionals to the Group; and also because of the financial approaches and formulation of investor’s strategy; based on the application of risk administration criteria and successful market exit. This way investment project’s system inefficiencies are “arbitraged away”. PRM has developed creative

financing schemes -i.e. for the agriculture sector; to collateralize projects in various sectors-, and is successfully managing a “portfolio” of multi sector and geographically diversified base of projects.

PRM, has access to investment and financial sources, as well as to collateralization support that makes available to Project Sponsors.

III. BUSINESS MODEL AND STRATEGY

PRM distinguishes its approach from others in place because of: its business model – strategic partnering with the investor and / or project sponsors by having part of its fees contingent to the project success-; its comprehensive approach towards project development and quality assurance; and its risk management system

The success of PRM projects portfolio is assured by carefully manage each operation through its entire life cycle -supported by the appropriate information system- project identification and design, due-diligence / appraisal and project selection, project financing and financial structuring, managing support to project implementation and operation, and strategic schemes to eventually monetize value of equity built up in successful projects to benefit the investors. Every project in the portfolio, from its inception, is positioned and financially structured to maximize the market potential, in the local and foreign markets. Every operation is formulated in an integral “Underwriting Report” and supported by efficient information systems.

Financial and capital markets parties have the assurance that each initiative accepted by PRM is selected, examined in the initial due diligence phase, underwritten, built and developed, with a view to structuring the project oriented to accumulate equity on an optimal basis for eventually dispose it in the equity markets. PRM supports the procurement of project investment and/or financing, and provides the risk administration during the whole process of implementation and operation in order to assure the success, according the funding sources’ requirements.

The PRM Group Peru management and the team associated are integrated by professionals with combined experience of over 100 years in business strategic planning, and project and operations management across many economic sectors, including agriculture, forestry, cattle, agro-industry, house building, energy, mining, tourism, public services, financial and insurance services, health, etc.

IV.

PROJECT DEVELOPMENT AND QUALITY ASSURANCE

PRM’s business model calls, preferably, for investment projects that are commercially viable (existing buyer market), are revenue generating (profitable) and can be securitized. In this context, PRM’s focus extends beyond just facilitating financing for such projects; it also involves considerable effort and attention to successful monitoring of the implementation and operation of projects to build up when possible an equity base. It is this comprehensive approach to financing, implementing and operating
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projects under PRM risk management control with market orientation that differentiates PRM from traditional project managing companies.

In view of the above, PRM’s approach to project financing and development is guided by the following three key principles: Promotion of Peru as a market where there are a large number of serious opportunities for project financing and investment. Articulate partnerships and alliances with contacts within the country and overseas. Promotion of projects in selected dynamic economic sectors to ensure a diversified portfolio, effective risk management, promotion in the capital market and manageable financial exposure.

To accomplish that objective PRM full project cycle approach - identification, development, due diligence / appraisal, implementation, management and risk administration of projects - is characterized by stringent quality assurance measures. PRM subjects project proposals against three levels of "qualifying criteria" to ensure success: PRM Investment Criteria, Risks Exposure, and Management/Operational Quality.

These qualifying criteria are applied before a project is considered for full appraisal and due-diligence necessary to secure the financing and/or collateralization. It should be noted that due the nature of PRM operation - that goes along the whole project implementation and operation - a "risk management fee" is included in the project cost build-up and cash flow.

Investment / Financing Criteria. Following criteria are applied to proposed projects: PRM Position in the Projects: PRM must have access to the financial information and assumes the risk management responsibility (either through direct system or assigned). Project Sponsors: Projects need to be set either by promotion or corporate entities. Success Fee: Besides the "risk management fee" to be included in the built-up cost and cash flow, Project sponsors are required to pay an up-front fee to cover PRM due diligence costs. This fee should be agreed beforehand. Project Sectors: Projects in the following sectors are highly seek: agriculture, cattle, aquiculture, forestry, fishing, nutrition and food industry; mining; energy and power generation; housing construction; health and tourism/leisure investments. Environmental Impact: PRM reserves the right to refuse projects that unequivocally damage ecosystems and environment.

Risk Exposure. Proposed initiatives are reviewed as per specific criteria according the nature of project, proceeding with the exposure appraisal of both inherent and external risk articulating the project within its "Business System" that is built upon the System Dynamics framework, as the structure within risk management modern tools are properly applied (Enterprise Risk Management Risk Mapping, Process Mapping).

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Management / Operational Quality and Selection Criteria. The criteria applied for selecting projects is as follows: Projects that have qualified management and operational teams Projects with modern organization and system approaches, preferably based on processes. Projects that generate profits and can be introduced to the equity market. Projects where the commercialization risk is not significant. Projects where if foreign exchange risk exists, there is a local developed secondary market for such a foreign currency. Projects with positive social impact through quality job generation. Projects that preserve the ecosystems and do not damage the environment. Projects that are well formulated and are able to be implemented in short period of time.

Through the Consulting Division, PRM extends to its clients and prospects the services of Project, Business and Strategic Development.

Being the present the PRM projects portfolio part currently in closing phase and part in prospection and studies, The PRM Group Peru operates through the following Units:

PRM Consulting SAC, that takes care of the pre-operative service of the projects from formulation and getting along to the closing; and in the operational phase business and managerial consulting.

PRM Inversiones & Proyectos

S.A.,

which will be activated once the projects begin to enter in

their implementation phase, to offer the risk administration services while the projects are exposed to credit risk and ahead if the client company decides so.

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V.

MANAGEMENT TEAM AND ASSOCIATED PROFESSIONALS TO PRM

Rafael Villegas Cerro, Founder and First Chairman;
Lawyer, CEO Buffet “Rafael Villegas Cerro S.C.R.L."; President of the International Financing Intelligence Committee for Perú UIF; Member of CONFIEP Advisory Council; Chairman CEARCO - Center of Arbitration and Commercial Conciliation; Member of the Executive Committee of the Council for the Peace; President INDEPRO - Institute of Productivity Development; President of "INTEGRIDAD” (civil entity to fight corruption); Member the National Anti-corruption Commission; Arbiter - Lima Lawyers Association; Arbiter - Lima Chamber of Commerce; Attorney - Civic Committee of Cooperation of the Peruvian National Police Criminal Investigation Division; External lawyer of the Banco Santander Central Hispano. Has been: President of EsSalud (Health National Agency); President of the Lima Chamber of Commerce; President of the Peruvian Confederation of Commerce Chambers.; Vice-president of the Ibero-American Association of Commerce Chambers; President of the National Confederation of Private Enterprise Institutions –CONFIEP; President of the Andean Group Confederation of Commerce Chambers; Honorary professor of the Piura University; Honorary member of the Arequipa Lawyers Association; President of Reaseguradora Peruuana S.A. (Insurance and Reinsurance Company); President of Industrial Paramonga S.A.; Member of the Board of many Companies and Institutions. Dr. Villegas has dictated conferences on diverse topics in national and international forums; and published diverse works, being a cooperator in Newspapers: El Comercio, Sintesis, Gestión; and Business Magazines: La Banca; Presencia, Economía y Bolsa.

Ernesto Becerra Mejía, Director

Agrarian Engineer, Universidad Nacional Agraria La Molina - Peru; Risk Management Advisor and Consultant Reinsurance - Insurance Expert; Chairman of the Board of Agro Omega 3 SAC. Has been General Manager Reaseguradora Peruana S.A.; Director ARELA, Latin American Reinsurers Association; Manager Popular y Porvenir Compañía de Seguros; Manager Olarescu & B.I. Davis (Frank B. Hall and Nicholson Chamberlain), Tijero & Payet Corredores de Seguros S.A. (Alexander & Alexander, Alexander Howden and Red Stenhouse, now AON Group), Managing Director Nexus Consorcio de Productores de Seguros, Mariátegui & Asociados Productores de Seguros S.A. (Heath, Hudig Langelvet), ABB Productores de Seguros S.A., Productores Ejecutivos de Seguros S.A., CORSA Seguros (Dewey Warren & Co. Ltd. Lloyd’s Broker), Rehder & Asociados Productores de Seguros S.A. (Willis Corroon and Grieg Fester); Arbiter CEARCO Center of Arbitration and Commercial Conciliation. Profesor of Risk Management and Insurance in the APESEG Institute and other Supirior Institutes in Peru.

Luis Bravo Villarán, Director

Telecommunication Engineer; Managing & Business Advisor and Consultant; Member of the Board of Agro Omega 3 SAC and OXIBARIK. Has been Professor of Risk Management MBA Course, San Ignacio de Loyola Business School Member of the Board of Minero Perú, Minera Izcaycruz, among others companies; General Manager of "El Sol (Alliaz-RAS) Insurance Company"; Managing Director JH Asociados Corredores de Seguros (ex AON Group); General Manager Banco de Materiales, Peruvian Telephone Co.; Development Manager Banco Latino; Project Director Empresa Nacional de Telecomunicaciones del Peru; Managing Director ITT Perú and Fábrica de Equipos de Telefonía S.A.; Project and System Engineer ITT Corporation (Perú, Spain, France and Great Britain). Publications: Libertad Empresarial con Responsabilidad Social (Book - 1985); Tendencias en un Perú viable para los 90’s (1990); Exito y Liderazgo (Book – 1997; 2nd Edition 1999); Liberalismo con Rostro Humano (1st pre-edition 2000; 2nd pre-edition 2001); Riesgo y Bienestar (co-author Luis R. Bravo. Book in final revision that deals with General and Financial Risk Management and Sustainability)

Javier Bravo Villarán, Director
Retired Peruvian Navy Admiral – Marina de Guerra del Perú

Alberto Ruibal Handabaka, International Director
Agrarian Engineer, Universidad Nacional Agraria La Molina - Perú, Master in Economy Internacional – IOWA University USA, Ph. D. in Logistics & International Trading Columbian Pacific University – California USA, International Consultant in Logistics & International Trading. Telecommunication Engineer, Business Consultant and International Expert in IT Solutions

Rodolfo García Napurí, International Director Herbert Cayro L. , PRM Consulting Director

Business Administration Senior. Executive with fine skills in organization and administration. Wide experience in the handling of business policies, in the sectors: Pharmaceutical, Civil Construction and Petroleum. Important achievements obtained in the Strategic Planning and Programs of Cost reduction. Raising international funds (mainly Washington - USA) for more than 50 investigation projects. Adviser for the Commission of Pro investment in the Republic Congress of Peru. Important ability in the selection and managing of Human Resources. Graduated in Business Administration - University of Lima, Integral Program of Marketing and Sales - ESAN, Integral Program of Finances and Accounting - ESAN, Graduated in Political Sciences – UNMSM

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Associated Professionals:

FRANCISCO VAINSTEIN BORRANI: retired Peruvian Navy Admiral ENG. OSCAR V. BRAVO – OFFICIAL IN CHARGE INDUSTRIAL OPERATIONS
(President of Instituto de Administración Social - IDAS)

MICHA HADAS – OFFICIAL IN CHARGE AGRICULTURAL OPERATIONS
(Agricultural Economist and Engineer – Rupin Institute and BAR ILAN University Israel)

ECON. LUIS R. BRAVO – FINANCIAL RISK OFFICIAL
(MBA CEMP Michigan Ann Arbor; former Enron Associate. Financial and Risk Management Expert, Professor of Risk Management Course in the San Ignacio de Loyola MBA School; former Manager of Centura SAB (Interbank Group, Manager of Economic Studies). Professor of Economy at the Universidad de Ciencias Aplicadas (UPC).

AGR. ENG. JULIÁN CARRILLO GARIBOTTO
Agrarian Engineer, Universidad Nacional Agraria La Molina – Perú. Expert in Agriculture, Rural Development, Financing,
Field Auditing and Training. Structuring and Risk Analysis of Investment of Rural Development Projects. Wide experience in farmers grouping and organization. Also in post cropping and packing management.

MR. ABEL DELGADO VELÁSQUEZ ENG. EDUARDO GR MARISCA AGR. ENG. CARLOS AGUILAR LYHON MSC JULIO Y. ROBLES ECON. DIMAS CONCHA TENORIO MSC MANUEL R. RÍOS Among others ...

DR. LW. MARTIN BECERRA VEGA ENG. JAVIER KUJON RIVAS MSC EMILIO M. ROJAS MBA. ACC. AUGUSTO V. BRAVO ECON. PEDRO CARRILLO GARCÍA CLNEL. FAP (R) ERNESTO LUNA

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