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INCINER5 Pte Ltd 2013

TABLE OF CONTENT
1 EXECUTIVE SUMMARY ---------------------------------------------------------------------------- 4
1.1 1.2 1.3 1.4 1.5 Introduction ------------------------------------------------------------------------------------------------------------------------ 4 The Company ---------------------------------------------------------------------------------------------------------------------- 4 Products and Services ----------------------------------------------------------------------------------------------------------- 5 The Market ------------------------------------------------------------------------------------------------------------------------- 5 Financial Considerations ------------------------------------------------------------------------------------------------------- 6

2 3

INTRODUCTION ------------------------------------------------------------------------------------ 7 COMPANY DESCRIPTION ------------------------------------------------------------------------- 9


3.1 3.2 3.3 3.4 3.5 3.6 3.7 Mission Statement --------------------------------------------------------------------------------------------------------------- 9 Vision -------------------------------------------------------------------------------------------------------------------------------- 9 General Descriptions of the Business ------------------------------------------------------------------------------------ 10 Industrial Background--------------------------------------------------------------------------------------------------------- 12 Company Potential------------------------------------------------------------------------------------------------------------- 14 Milestones ------------------------------------------------------------------------------------------------------------------------ 15 Uniqueness of Product & Service ------------------------------------------------------------------------------------------ 16

PRODUCTS AND SERVICES --------------------------------------------------------------------- 23


4.1 4.2 4.3 Features --------------------------------------------------------------------------------------------------------------------------- 24 Benefits---------------------------------------------------------------------------------------------------------------------------- 28 Pricing Strategy ----------------------------------------------------------------------------------------------------------------- 29

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5 MARKETING PLAN ------------------------------------------------------------------------------- 31
5.1 5.2 5.3 Market Research and Analysis --------------------------------------------------------------------------------------------- 31 Marketing Plan ------------------------------------------------------------------------------------------------------------------ 40 Marketing Strategy ------------------------------------------------------------------------------------------------------------ 40

OPERATION PLAN -------------------------------------------------------------------------------- 42


6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9 Location --------------------------------------------------------------------------------------------------------------------------- 42 Rental ------------------------------------------------------------------------------------------------------------------------------ 43 Transportation ------------------------------------------------------------------------------------------------------------------ 43 Legal Requirement ------------------------------------------------------------------------------------------------------------- 43 Personnel ------------------------------------------------------------------------------------------------------------------------- 44 Storage System ------------------------------------------------------------------------------------------------------------------ 44 Provider/ Supplier-------------------------------------------------------------------------------------------------------------- 45 Operating Cost ------------------------------------------------------------------------------------------------------------------ 46 Cost Rebate ---------------------------------------------------------------------------------------------------------------------- 47

MANAGEMENT ORGANIZATION -------------------------------------------------------------- 48


7.1 Management Team and Key Personnel---------------------------------------------------------------------------------- 48

FINANCIAL PLAN --------------------------------------------------------------------------------- 50


8.1 8.2 8.3 Financial Resources ------------------------------------------------------------------------------------------------------------ 50 Pro Forma Statement of Financial Performance ---------------------------------------------------------------------- 52 Pro Forma Statement of Comprehensive Income -------------------------------------------------------------------- 53

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8.4 8.5 8.6 8.7 8.8 Pro Forma Statement of Changes in Equity ---------------------------------------------------------------------------- 54 Pro Forma Cash Flow Statement ------------------------------------------------------------------------------------------- 55 Break Even Analysis ----------------------------------------------------------------------------------------------------------- 56 Financial Ratio Analysis ------------------------------------------------------------------------------------------------------- 58 Highlights ------------------------------------------------------------------------------------------------------------------------- 59

BUSINESS RISKS ---------------------------------------------------------------------------------- 60


9.1 9.2 9.3 9.4 9.5 9.6 9.7 Securing of Economic Efficiency-------------------------------------------------------------------------------------------- 60 Quantity and Quality Risks of Municipal Solid Waste --------------------------------------------------------------- 60 Clarification of the Scope of the Government Side ------------------------------------------------------------------ 61 Inflation Risk --------------------------------------------------------------------------------------------------------------------- 61 Risks Related to Residents Opposition Campaign ------------------------------------------------------------------- 62 Local Business Partner -------------------------------------------------------------------------------------------------------- 62 Prospects of loans -------------------------------------------------------------------------------------------------------------- 62

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CONCLUSION ----------------------------------------------------------------------------------- 63 APPENDIX --------------------------------------------------------------------------------------- 64

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1 Executive Summary
1.1 Introduction
INCINER5 Pte Ltd is a start-up waste management company that has been specialized on incineration and gasification technologies since 2010. We had practiced our expertise widely across China with the local authorities for 10 years before venture our business into Malaysia in 2010. We are located in Senawang Industrial Park, Selangor. INCINER5 expects to catch the interest of clients with our feasible solid waste disposal services. Our company plans to build a strong market position in the country, due to our partners industry experience and mild competitive climate in Malaysia.

Our main serve purpose is aiming to provide an alternative solid waste management to Malaysia with the most efficient and feasible incinerators. In the same time, the company offers products at a competitive price to meet the industrial demand and local market areas such as hospitals and restaurants.

1.2 The Company


INCINER5 is incorporated in Bandar Baru Bangi, Selangor. It is equally and owned by its 5 partners.

Mr Ahmad Nazrul Hakimi has extensive experiences in civil engineering and earned himself MBA in University of Michigan, United Sates. He was a regional general manager of Waste Management, Inc of South East Asia. Now he also owns a civil engineering company in Penang. Mr Yeu Wee Chek brings experiences in the area of marketing and administration, including a stint as chief marketing officer in manufacturing industry and the national retail store chain, Padini Company.

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Miss Tee Yee Yeong comes from a strong analytical background of finance and she was financial consultant who previously served Shell Malaysia and Dell Malaysia. Miss Noor Zaiyan is an experienced human resources manager with 10 years experiences. Besides, we have Miss Mazni joined the company as operation manager who work previously in Nestle Malaysia for 5 years.

The company intends to hire 3 engineers, 2 supervisors, 4 operators and 6 truck drivers to handle customer service and day to day operations.

1.3 Products and Services


INCINER5 Pte Ltd is technology-based company, which has developed proprietary combustion technologies for providing alternative solid waste disposal in Malaysia. We offer solutions for the treatment for industrial hazardous waste and hospital medical waste, as well as organic wastes from hotels and restaurants. We comply with the international standard ISO 14044 and also certified by ISO 9001:2008 Malaysia Standard.

The company develop own unique WasteDry technology that uses heat and vacuum to separate the hazardous contaminants. The state-of-art of WasteDry technology is also far more energy efficient than other thermal incinerators and delivers extreme low emission volumes. Due to higher moisture content of municipal wastes in Malaysia, INCINER5 Pte Ltd targets services more in some specific fields like industry waste and medical waste rather than municipal waste.

1.4 The Market


The national development and industrial activities has grown rapidly under boost of Malaysia Economical Plan. Plus, community populations are growing dense and exponentially. These factors lead to generate tones of solid wastes throughout the year.

INCINER5 wants to establish a large regular customer base, and will therefore concentrate its business and marketing on industrial clients, as well as hospital and retailed restaurant potential 5|Page

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clients. This will establish a healthy, consistent revenue base to ensure stability of business. The target segments are industry sector mainly manufacturing sector, since that this industries growing rapidly over the year.

1.5 Financial Considerations


The company anticipates sales of about RM 3,210,000 in the first year 2013, RM 3,691,500 in the 2014 and RM 4,245,225 in 2015, the third year of plan. It should break even by the sales of RM 3,219,000 of its operation. Hence, it expects to welcome the break even after the first three month in 2014 as sales steadily increases. The company does not anticipate any cash flow problems.

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2 Introduction
INCINER5 Pte Ltd was incorporated on the 8th August 2010 and was registered in the same year as an incinerator manufacture and management Company. Its Head Office is located;

41-43, Kawasan Perindustrian Senawang, 70450 Seremban, Negeri Sembilan, Malaysia.

INCINER5 has been specialized on incineration technology since 2010 and has Certified ISO 9001:2008 quality management system and CE Certificate. INCINER5 aims to manufacture the most efficient and feasible incinerators while maintaining the environmental quality and sustainability. In accordance with those scopes, many incinerators serving for different purposes has been manufactured and most of them has satisfied the requirements of the customers and are still in operation. INCINER5 is superior to other waste disposal systems because of its, Easy maintenance, Fully automated control mechanism that prevents operational handicaps, Compliance with EPA and EU regulations related to solid and Hazardous waste incineration. Minimized operational and maintenance cost, Energy can be recovered by means of heat recovery. Easy accessibility of the spare parts, Feasibility and long life.

Following types of machines are currently in our area of business;


Hazardous Waste Incinerator Medical Waste Incinerator Animal Waste and Carcass Incinerator (Crematory) Sludge Incinerator Shipboard Incinerator Propellant Incinerator 7|Page

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INCINER5 Pte Ltd has supplied over 10,000 produce and sell incinerators of various types to meet the demand of customers toward achieving the company primary mission. WORKING TOGETHER TO KEEP OUR WORLD CLEAN

INCERN5 Pte Ltd is proud of these accolades, but the greatest reward is the satisfaction in protecting the integrity of the Earths natural resources. From the employees who manufacture pollution control and recovery products, through the dealer network, and ultimately to the responders who work tirelessly to clean up environmental disasters, INCERN5 Pte Ltd is dedicated to the mission of keeping our world clean.

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3 Company Description
3.1 Mission Statement INCINER5 Pte Ltd Is committed to the pursuit of Excellence In Quality.
Our aim is to manufacture the most efficient and feasible incinerators while maintaining the environmental quality and sustainability.

To provide customized solution through reliable, efficient, safe, and cost effective waste-toenergy (WtE) plants that meet the highest environmental standards and to provide excellent services that satisfy our customers requirements.

3.2 Vision
To be innovative leader in the field of combustion technology for the biomass industry INCINER5s main objective is to maintain and continuously improve the quality of its services and product by implement the seven pure values:I N C I N E R 5 : Integrity : Nurture : Cooperation : Innovate : Notable : Endeavour : Resourceful : 5S Concept (Sorting, Straightening, Systematic Cleaning, Standardize, Sustain)

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3.3 General Descriptions of the Business
COMPANY NAME ADDRESS INCINER5 Pte Ltd 41-43, Kawasan Perindustrian Senawang, 70450 Seremban, Negeri Sembilan, Malaysia. TELEPHONE NUMBER FACSIMILE NUMBER EMAIL ADDRESS WEBSITE INDUSTRY BUSINESS TYPE +606-678 6759 +606-678 6760 inciner5@gmail.com www.inciner5.com.my Manufacture Manufacturer, retail sales, wholesale supplier, exporter STRUCTURE OF BUSINESS DATE OF REGESTRATION DATE OF COMMENCEMENT PRODUCTS Partnership 8th August 2010 9th September 2010 Hazardous Waste Incinerator Medical Waste Incinerator Animal Waste and Carcass Incinerator (Crematory) Sludge Incinerator Shipboard Incinerator Propellant Incinerator

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INCINER5 Pte Ltd located in Senawang Industrial Park, Senawang, Negeri Sembilan is a company which manage the waste product from industries, restaurants, hazardous waste, medical waste, animal waste, municipal waste, sludge, and others. INCINER5 also produce and sells the Incinerators at reasonable price and high quality. INCINER5 has a wide range of incinerator products, namely Hazardous Waste Incinerator, Medical Waste Incinerator, Animal Waste and Carcass Incinerator (Crematory), Sludge Incinerator, Shipboard Incinerator, and Propellant Incinerator. This product has been manufactured at the factory owned by INCINER5 Pte Ldt by skilled workers to ensure the quality of the product produced is assured. This product is produced using high-quality materials that have been imported from great authority like China and USA.

INCINER5 Pte Ltd sells their products through various ways of purchase the product directly with us at our company located at 41-43, Kawasan Perindustrian Senawang, 70450 Seremban, Negeri Sembilan, or purchase through our legal agents or make purchases via online at www.inciner5.com.my, by filling in the booking form from our website. The booked items will continue to be sent to the recipient address at no extra charge.

The name INCINER5 means ' INCINER ' which is the incinerators product that produced and sold by our company. We are very proud of the products we produce because the product is one of the medium to us to serve the public in General and the environment in particular. Number ' 5 ' on the other hand means INCINER5 is establish due to the agreement among its five partners; Tee Yee Yeong, Ahmad Nazrul Hakimi, Yeu Wee Chek, Mazni Jamaludin and Zaiyan Misyan With the proportion of ratios contribution of 1:1:1:1:1. All the capital, profit and loss, goodwill, disbursement, liquidation and any other transaction to be full under the business name shall be treated under such ratios. In fact the authority power of making decision was decided to be hold by the partners accordingly to the ratios of contribution.

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3.4 Industrial Background
Incineration is a waste treatment process that involves the combustion of organic substances contained in waste materials. Incineration and other high-temperature waste treatment systems are described as "thermal treatment". Incineration of waste materials converts the waste into ash, flue gas, and heat. The ash is mostly formed by the inorganic constituents of the waste, and may take the form of solid lumps or particulates carried by the flue gas. The flue gases must be cleaned of gaseous and particulate pollutants before they are dispersed into the atmosphere. In some cases, the heat generated by incineration can be used to generate electric power.

Incineration with energy recovery is one of several waste-to-energy (WtE) technologies such as gasification, pyrolysis and anaerobic digestion. While incineration and gasification technologies are similar in principle, the energy product from incineration is high-temperature heat whereas combustible gas is often the main energy product from gasification. Incineration and gasification may also be implemented without energy and materials recovery.

In several countries, there are still concerns from experts and local communities about the environmental impact of incinerators (see arguments against incineration).

In some countries, incinerators built just a few decades ago often did not include a materials separation to remove hazardous, bulky or recyclable materials before combustion. These facilities tended to risk the health of the plant workers and the local environment due to inadequate levels of gas cleaning and combustion process control. Most of these facilities did not generate electricity. Incinerators reduce the solid mass of the original waste by 8085% and the volume (already compressed somewhat in garbage trucks) by 9596%, depending on composition and degree of recovery of materials such as metals from the ash for recycling. This means that while incineration does not completely replace landfilling, it significantly reduces the necessary volume for disposal. Garbage trucks often reduce the volume of waste in a built-in compressor before delivery to the incinerator. Alternatively, at landfills, the volume of the uncompressed 12 | P a g e

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garbage can be reduced by approximately 70% [citation needed] by using a stationary steel compressor, albeit with a significant energy cost. In many countries, simpler waste compaction is a common practice for compaction at landfills.

Incineration has particularly strong benefits for the treatment of certain waste types in niche areas such as clinical wastes and certain hazardous wastes where pathogens and toxins can be destroyed by high temperatures. Examples include chemical multi-product plants with diverse toxic or very toxic wastewater streams, which cannot be routed to a conventional wastewater treatment plant.

Waste combustion is particularly popular in countries such as Japan where land is a scarce resource. Denmark and Sweden have been leaders in using the energy generated from incineration for more than a century, in localized combined heat and power facilities supporting district heating schemes. In 2005, waste incineration produced 4.8% of the electricity consumption and 13.7% of the total domestic heat consumption in Denmark. A number of other European countries rely heavily on incineration for handling municipal waste, in particular Luxembourg, the Netherlands, Germany and France.

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3.5 Company Potential
Awareness and open the eyes of the general public about the advantages and the positive effect the use of incinerator.

Always do research so as to enhance the effectiveness of the use of the incinerator to the public, animals and the environment.

Increase the number of agents who check to expand and launch the selling products this incinerator.

Able to open a new factory branches in other countries such as Thailand, Indonesia and others to expand this business and earn higher profits.

Long term goal was able to contribute to the general public and the environment by helping solve the problem of disposal of rubbish that has various adverse effects to humans and the environment. In addition, by using this product we can reduce the use of land for landfills.

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3.6 Milestones
Week 1 (12/09/13) Research - Brainstorming (idea) - Finding information - Discuss Combine - Make decision of product - Product design - Modify Assign job by section - Marketing: Yee Yeong - Operation: Hakimi - Management: Wee Chek - Financial: Mazni - Catalog: Zaiyan Combine - Review and doing correction - Making slide show Prepare for presentation - Rehearsal Presentation of Business Plan Week 2 (19/09/13) Week 3 (26/09/13) Week 4 (10/10/13) Week 5 (17/10/13) Week 6 (24/10/13)

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3.7 Uniqueness of Product & Service

3.7.1 Medical Waste Incineration Systems Medical waste, due to its content of hazardous substances, poses serious threats to environmental health. They composed of all types of wastes generated by health care organizations such as hospitals, clinics, physicians' offices, dental offices, veterinary facilities and other medical laboratories and research facilities. This waste is very heterogeneous in nature and often contains some infectious elements, thus it is essential that the handling and disposal of the waste is conducted safely. Medical wastes that can be incinerated include: Infectious wastes from hospitals, Healthcare wastes from hospitals, clinics and polyclinics, Wastes from maternity hospitals, Expired drugs, Surgery wastes, Biomedical wastes, Pathological wastes, Pharmaceutical wastes.

About 85% of a hospital's waste is general refuse, while the remaining 15% is contaminated with infectious agents (e.g. microbiological cultures, blood and blood products, isolation wastes from patients with communicable diseases, pathological specimens and sharps). Landfilling as a method of disposal for medical wastes may lead big problems. First of all, there is a demand for large area to landfill the wastes. Moreover, there should be no settlement site near landfill due to its possible hazards to human life. Odor is the first problem that the people living close to landfill area may face with. Additionally, leakage originated in the landfill cause soil and groundwater contamination as well as the surface water contamination.

Unlike other methods of handling such as sterilization or autoclave disinfection, incineration creates much less end-products. After a complete combustion of medical wastes, incineration reduces the weight and volume of the waste as much as 95%. Moreover, above mentioned 16 | P a g e

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methods are not suitable for every type of medical wastes, like pathological tissue, chemotherapy waste, and sharps, whereas the incinerator can be used for all types of wastes originated in the healthcare institutions.

3.7.2 Animal Waste Incineration Systems Animal wastes from various sources need to be handle with special care. INCENER5 offers well-suited solutions for specifically designed for your animal wastes. Animal wastes include: Poultry animals infected from Bird Flue Disease, Farm animals infected from Swine Flu Disease, Farm animals infected from Mad Calf Disease, Animal Carcasses form Slaughter houses, Experimental Animals, Poultry animals from farms, Pet Crematoriums, Animals from zoo.

Animal Carcass Incinerators are designed especially for safe destruction of animal by-products originated from various sources and listed above. Animal by-products (ABPs) are described as animal carcasses, parts of carcasses or products of animal origin that are not intended for human consumption. This includes catering waste, used cooking oil, former foodstuffs, butcher and slaughterhouse waste, blood, feathers, wool, hides and skins, fallen stock, pet animals, zoo and circus animals, hunt trophies, manure, ova, embryos and semen.

INCINER5 Incineration Systems are fully in compliance with the EU Animal By-Products Regulation (EC 1774/2002). INCINER5 Animal Carcass Incinerators are designed in such a way that the gas resulting from the process is raised in a controlled and homogeneous fashion, even under the most unfavorable conditions, to a temperature of 850 oC with 2 second residence time.

For on-farm use, INCINER5 developed Incinerator Systems with the capacity of less than 50 kg/h so that these incinerators are classified as low-capacity range incinerators and exempt from 17 | P a g e

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planning permission. INCINER5 Animal Carcass Incinerators can be manufactured as mobile especially for the applications of incineration of poultry wastes infected from Bird Flue Disease.

3.7.3 Sludge Incineration Systems Sludge is a great problem for wastewater treatment plants. This problem grows every day since the amount of sludge increases continuously and the land required for the storage of the sludge. Moreover, it has some other problems like odor when it is kept in open areas.

Sludge originates from the process of treatment of waste water. Due to the physical-chemical processes involved in the treatment, the sludge tends to concentrate heavy metals and poorly biodegradable trace organic compounds as well as potentially pathogenic organisms (viruses, bacteria etc) present in waste waters. Wastewater characteristics and specific sludge production vary from country to country and from region to region. There are several sludge characteristics that have a great influence on the costs of sludge treatment. The water content is very important as it determines the sludge volume and therefore feasibility and costs of transportation and disposal. The solids and water content of sludge depends on the type of sludge (e.g. primary sludge, waste activated sludge, chemical sludge) and the type and quality of its treatment (e.g. sludge digestion) and on the method of sludge thickening and dewatering.

Moreover, for the land application of sludge there exist some limiting factors such as heavy metal content. In the case of land application, harmful effects of the sludge will be presented on soil, vegetation, animals and humans.

As a result of the existing methods used in regular wastewater treatment plants, water content of the sludge can be reduced approximately to 75%. This means that sludge still contains 75% water and only 25% solid matter. Therefore, total volume and weight of the sludge still remains as a great problem. Landfilling is not a solution for sludge disposal. On the contrary, it creates other problems and it has a great cost for the transportation and Landfilling. Furthermore, EU regulations states that wastes are to reduce by 2010 the amount of biodegradable municipal waste sent to landfill to 75 per cent of that arising in 1995, with further reductions to 50 percent by 18 | P a g e

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2013 and 35 percent by 2020. Therefore, Landfilling seems not to be a solution for sludge handling.

At this point, INCINER5 offers a system which decreases the total volume of the sludge to about 5% of its original volume with the name of Sludge Fuelisation System. Within this system, Sludge first fed to the drying unit and dried sludge is directed to the incineration unit. With the incineration of dried sludge necessary energy for the drying process is provided. INCINER5 Sludge Fuelisation System consists of 2 processes which are Sludge Drying System and Waste Incineration System.

3.7.4 Hazardous Waste Incineration Systems Hazardous Waste has listed it in one of three categories: i. Source-Specific Waste: This list includes waste from specific industries such as petroleum refining, wood preserving and secondary lead smelting, as well as sludge and production processes from these industries, ii. Generic Waste: This list identifies waste from common manufacturing and industrial processes including spent solvents, degreasing operations, leachate from landfills and ink formulation waste, iii. Commercial Chemical Products: This list includes some pesticides, creosote and other commercial chemicals

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Examples of Hazardous Waste Generated By Industries and Businesses: Waste Generator Chemical Manufacturers Chemical Manufacturers Acids and Bases, Spent Solvents, Reactive Waste, Wastewater Containing, Organic Constituents Printing Industry Heavy Metal Solutions, Waste Inks, Solvents, Ink Sludge Containing ,Heavy Metals Petroleum Industry Leather Manufacturing Paper Industry Construction Industry Metal Manufacturing Paint Waste Containing, Heavy Metals, Ignitable Solvents Ignitable Paint Waste, Spent Solvents, Strong Acids and Bases Sludge containing ,Heavy Metals, Cyanide Waste, Paint Waste Products Refining Wastewater Containing ,Benzene & other

Hydrocarbons ,Sludge from Refining Process Toluene and Benzene

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Working Principle Hazardous wastes can be in the form of liquid, solid, gas, or sludge. They can be discarded commercial products, like cleaning fluids or pesticides, or the by-products of manufacturing processes. All hazardous waste in the form of solid, liquid, gas and sludge can be destroyed by INCINER5 Incineration system.

To achieve individual charging of liquid wastes, incineration system is equipped with a liquid injection system through which liquid charging to the combustion chamber is achieved. Flow is given to the system via two spray nozzles namely double fluid atomizers. Double fluid atomizers are used to get very fine droplets in order to get better incineration efficiency.

Hazardous Waste Incinerators has two combustion chambers. In the main combustion chamber wastes are incinerated in 900 C with the principle of starved air incineration and the flue gas originated in this chamber is directed to the secondary combustion chamber. In the secondary combustion gases formed during the incineration of wastes in the main combustion chamber are re-burnt at 1200 C during 2 seconds. Excess air is provided to the secondary combustion chamber to achieve complete combustion of organic content of the waste.

Hazardous waste has high calorific value so it can be used as a source of energy. Therefore, in the incineration process, it requires less fuel to increase its temperature to 1200 C. Waste energy most often recovered as steam can be used to generate electricity. There are two main Regulations for the Hazardous Waste Incineration Systems in the world; namely, EPA and EU 2000/76/EC. INCINER5 Incinerators can be designed fully in compliance with both of these regulations as well as the local standards.

In order to be fully in compliance with the desired Emission Standards, INCINER5 Incineration Systems Includes flue gas treatment units. Flue Gas Treatment in these systems is multi pollutant control approach to remove the hazardous content of combustion gas originated due waste incineration

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Advantages of INCINER5 Incinerator for Hazardous Waste: Hazardous waste incineration method is suitable for a wide range of hazardous wastes such as highly flammable, volatile, toxic and infectious waste streams which should not be landfilled INCINER5 Incinerators designed to be fully in compliance with desired emission standards, Moisture content causes no problem, Produces clean ash in small volumes, Produces no dioxins even with added chlorine, Product gas has a much higher heating value, Feed contaminants, such as chlorine & sulfur, are reduced to their acid forms Possibility of energy recovery

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4 Products and Services
INCINER5 Ltd is technology-based company, which has developed proprietary combustion technologies for providing alternative solid waste disposal in Malaysia. In 2009, the government launched the National Green Technology Policy by putting green innovation initiatives inside government agenda. The purpose of this policy aims to spur green technology as a driver of economic growth by increasing the national capabilities and green innovations and sustainable development.

This has attracted our company joined as a player in this new emerging market of waste management. Therefore, we are targeting waste management as our policy key area. We design, develop and market waste-to-energy and incineration system services for solid waste disposal throughout Malaysia.

We offer solutions for the treatment for industrial hazardous waste and hospital medical waste, as well as organic wastes from hotels and restaurants. Our aim is trying to avoid achieving conservation of material resources instead.

Besides, we take into accounts of all the operation process to follow the Life Cycle Assessment (LCA) to reduce environment impacts. Therefore, we comply with the international standard ISO 14044 that specific requirements and provides guidelines for Life Cycle Assessment. Besides, we also certified by ISO 9001:2008 Malaysia standards.

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4.1 Features
With more than 10 years of experience in serving waste management technologies, our research team developed the unique WasteDry technology that uses heat and vacuum to separate the hazardous contaminants like mercury, pesticides, organic lead compounds as well as other evaporable hydrocarbons. The state-of-art of WasteDry technology not only allows for different kinds of waste to be recycled, but it is also far more energy efficient than other thermal incinerators and delivers extreme low emission volumes.

4.1.1 Incinerator Service In early time, incineration was always considered to be the safest and most economical way of treating and disposing solid waste. However it is considered not very economical in dealing with the municipal solid waste in Malaysia. This is because solid waste in Malaysia contains higher composition of organic waste when compared to other Europe countries and China. Due to this reason, higher fuel consumptions are needed to combust the solid waste effectively. We target our services more in some specific fields like industry waste and medical waste rather than municipal waste.

Medical Waste As a leading provider in medical waste disposal services, protecting people and environment from the risk associated with biohazards is at the heart of what we do. Medical waste, also known as biohazards waste, consists of solids, liquids, sharps, and laboratory waste that are potentially infectious and dangerous. Disposal of this waste is an environmental concern, as many medical wastes are considered as biohazard that can potentially lead to infectious disease. Therefore, it must be managed properly to protect the public health. A conventional disposal of medical waste into landfill is not longer sustainable. By working together, INCINER5 Ltd provides a sustainable waste disposal programme by offering our clients with full complements of medical waste services. It is including the advanced autoclave and WasteDry technologies (high efficient combustion incineration technologies).

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Through a controlled process of pressure, temperature and retention time, the infectious hazardous waste can be converted into harmless residues. Additionally, by a further drying process with advanced technology of WasteDry, it is also possible to convert these residues into a refuse derived fuel. To distinguish ourselves from numerous available incinerator systems, we have developed a incinerator plant with an exceptionally high throughput capacity between 500 and 2000 kg/h. This high throughput capacity which is only operated in one single sterilizer chamber and it makes our technology unique in Malaysia. Other than that, the incinerator is equipped with a shredding system which is accordance to Malaysia recommendations for the treatment of infectious waste.

Industrial Waste The manufacturing company and technology company produce a wide range of hazardous waste that legally requires a responsible disposal route, this includes the use of a license waste carrier with the appropriate site permits. All the industrial wastes possess critical risk towards environment and huge adverse impact to human health. Often, the waste products from industry activities leach into environment through the land and air adversely affect the health of human and wildlife. It is revealed that discharges from industry factories contain high level of heavy metals like boron, cadmium, lead and other nitrogen products that pollute environment. Therefore, we are using incinerator service system to solve the industrial sludge problems. Besides, we are determined to help client to solve the garbage in large production, such as roof replacement, where nails and shingles create a volume of waste. Our intention is to help customer to reduce the garbage volume and thus divert more waste from landfill. Our company can provide a one stop service for all engineering waste including metal (ferrous and nonferrous), oils, greases, fluorescent tubes, batteries and chemicals. We offer the infrastructure and

flexibility to collect all types of waste whilst still providing a reliable and efficient service at a low cost. We will provide the collection and disposal of clients waste, including difficult and hazardous waste streams such as electronic trash. With a fully tracked waste service and a range of approved recycling process, our customer can be rest assured that their waste will be dealt in a responsible manner. After the industrial trash is being incinerated, the ash that is left behind is 25 | P a g e

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sterile and can be disposed safely in a normal landfill. A part of the residues metal can also be recycled. Other than that, we equip heat restore system in our incinerator. Part of the heat will be used to generate electricity and turbine steams in the incinerator plants.

4.1.2 Plasma Gasification Plasma gasification is an emerging technology which can process solid waste to extract commodity recyclables and convert carbon-based materials into fuels. It can form an integral component in a system to achieve zero-waste and produce renewable fuels, whilst caring for the environment. Plasma arc processing has been used for years to treat hazardous waste, such as incinerator ash and chemical waste, and convert them into non-hazardous slag.

Well, the technology is one of the green initiatives to convert solid wastes into biomass gas products. Thus, we are introducing the technology of gasification to help client dispose organic wastes like residual foods and garden waste from plantation instead of landfill. Gasification has great potential to operate effectively than other pyrolysis and combustion system due to its high temperature, heat density and nearly complete conversion of organic compounds into syngas whist non-organic converted into slag.

Syngas is a simple fuel gas comprised of carbon monoxide and hydrogen that can be combusted directly or refined into higher-grade fuels and chemicals. Slag is a glass-like substance which is the cooled remains of the melted waste. It is tightly bound, safe and suitable for use as a construction material. This technology has proven reliable in transforming environment liabilities into renewable energy assets.

We would to develop this technology that can benefits the restaurants and plantation field, our community and achieve greater environment. It can help restaurant and plantation industry towards a more sustainable image.

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4.1.3 Sell/Order Online INCINER5 also sell our incinerator products online, where we have a web site (www.inciner5.com.my) that shows our products catalogue online, and we accept customer order online. Our customer can choose to come to our shop to collect their incinerator or we can send their incinerator by using courier service for free of charge. For those who buy our product(s) can make their payment online by using credit card, master card, internet banking and other acceptable method.

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4.2 Benefits
Industries and municipal authorities have always struggled with the mechanisms of waste reduction and the methods previously used for waste disposal are getting limited. Due to the rapid urbanization and industrialization, waste management concerns are becoming critical. Landfill sites are shrinking and hazardous wastes cannot be dumped in landfills without treating them. Therefore incineration is the most attractive option as compared to other disposal methods. Here is the list of advantages of waste incineration:

Volume of waste incinerated is reduced by 90-95% Minimum land is needed for operation compared to the dimension of landfill. Life span of landfill can be increased. The waste residues can be recycled and reused as concrete aggregates. Incineration ash is sterile can be safely disposed off in normal landfill. Hazardous component of waste can be destroyed. Waste can be incinerated on site without having need of transporting it. Emissions after combustion can be effectively controlled by installing air pollution control devices such as gas scrubbers The incineration provides two possibilities of produced energy: (i) first of all distinct heating can be produced with the help of hot water (ii) electricity can be provided by the means of steam turbines.

The running cost can be reduced by recovering the heat in the forms like hot water, generating electricity, steam and etc. Provide alternative solid waste disposal system to Malaysia Reduce the natural loading by diverting more waste from landfill Can control the infectious pollution Decrease greenhouse gas emissions from landfill

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4.3 Pricing Strategy
Pricing strategy is basically built upon a solid understanding of the 5Cs of pricing: customers, competition, cost, capacity and cycle (business cycle). Therefore, it is necessary for us to gather the necessary data to help us understand better the five factors in the market. After that, we can combine the data with our extensive experiences to create high impact strategies to drive our incinerator service business forward.

4.3.1 Target Return Pricing Target return pricing is the process of setting an item/services price by using an equation to compute the price that will result in certain level of planned profit. By using a target return pricing method, we are able to sell incinerator service at such level that to meet its profit objectives if the sale is run at or above the specified quantity and amount. We start with a rate of return objective, like 10% of invested capital. After that, we will arrange our price structure in such a way it is likely to meet the target of return.

4.3.2 Market Oriented Pricing Research into incinerator service target market is the first step to managing a market-oriented pricing strategy. Firstly, we need to identify our customer market and which specific business field that we are going to provide the services. Then, the segments are narrow down into ideal markets containing the most desired consumers. Well, it is possible for us to choose to target more than one market segment, this is because the demand of waste management in Malaysia is huge. Most of the community needs some professional service to help them cater all the solid waste disposal problems.

Other than that, the environment surrounding our product/service, company and target market members play a role in pricing strategy. Factor of influence including the products lifestyle stage (in our case, we consider growing), the diversity of target market preferences, industry standards, our company available resources and capabilities and also the competitive atmosphere.

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4.3.3 Value Based Pricing The term is used when prices are based on the value of a product as perceived from the customer's perspective. The perceived value determines the customer's willingness to pay and thus the maximum price a company can charge for its product.

An essential component of value-based pricing is the necessity to determine the value for the customer. In order to define the value a customer associates with a product, the customer value model can be applied. This concept evaluates the economic benefits a product can offer to the customer. In this case, we calculate the rate of pricing depending on the benefits we generate for the client.

Incineration Packages Medical Waste Contract Industrial Waste Contract

Price (RM) range from 50,000 to 75,000 per year range from 45,000 to 200,000 per year which depend on the scale of waste disposal

Organic Waste Contract

range from 7000-9000 per year

Incineration Services Medical wastes Waste 1 ton capacity truck

Price (RM) 500 (per kg) 2000 (per truck)

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5 Marketing Plan
5.1 Market Research and Analysis
Malaysia, like most of the developing countries, is facing an increase of the generation of waste and of accompanying problems with the disposal of this waste. Waste is grouped into three different categories in respect of disposal, which are solid waste, medical waste and hazardous waste. According to a study by E. Grant Anderson in five states, Kuala Lumpur, Selangor, Pahang, Terengganu and Kelantan which representing 70 % of the total amount of waste in the country, the composition of waste is shown in Figure 5.1.

3% 8%

domestic
industrial

25%

commercial
64%

construction and institution waste

Figure 5.1: Waste Composition Source : Roundtable on Urban Solid Waste Management. Privatization Management on Solid Waste in Developing Countries, The Malaysia Experience

Industrial toxic and hazardous wastes are two of the key environmental pollutants. The absence of an effective management regime for these wastes has created many issues and opportunities. Rapid technological development enables these wastes to be handled and treated safely albeit increasing amount of toxic and hazardous wastes are generated. One of the solutions to this hazardous waste generated is resolved using incinerator. 31 | P a g e

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5.1.1 Target Market The target market is defined by the customer needs that create the market and the attractiveness of the market based on strategic value, market size, market growth, and potential for profit. We offer solutions for the treatment for industrial hazardous waste and hospital medical waste, as well as organic wastes from hotels and restaurants. So, the ideal customer for INCINER5 Ltd is company or industry that produced waste will be like manufacturing plant, hospital medical, hotel, and restaurant. The target segments are industry sector mainly manufacturing sector, since that this industries growing rapidly over the year.

5.1.2 Market Segmentation Manufacturing Industries Manufacturing industries that produce many hazardous waste especially involving chemical compound that can harm to human. Automotive industries Paint industries

Medical Facilities Hospital generates many clinical waste, which is very dangerous and it need to be incinerate. Commercial Industries Hotel and restaurant also give out waste that need to be treated, which mainly consist of organic matter.

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5.1.3 Market Size and Trend

Over the past decade, Malaysia has enjoyed tremendous growth in its economy and population, this resulted in an increase in the amount of waste scheduled generated. Furthermore, scheduled waste management has long been a problem area for local authorities in Kuala Lumpur. Continued illegal dumping by waste generators is being practiced at large scale due to lack of proper guidance and awareness. In 2007, the Department of Environment Malaysia (DOE) was notified that 1 698.118 metric tonnes were generated.

As in many other developing countries, the generation of clinical waste in Malaysia has increased significantly over the last few decades. Even though the serious impact of the clinical waste on human beings and the environment is significant, only minor attention is directed to its proper handling and legal aspects. Currently, clinical is reported together with pharmaceutical waste. The total clinical waste generated is about 8000 tonnes per year and DOE (2005) estimated that the generation rate for clinical waste varies from 0.3 to 0.8 kg per occupied bed per day.

There are also on-site industrial incinerators, for example a waste-to-energy plant in a paper mill to dispose waste paper sludge and a 4 ton/day combustion paint sludge incinerator in a national car manufacturer factory.

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5.1.4 Market Share

Currently, there are various facilities have been approved for management of scheduled wastes in Malaysia. These include 211 licensed waste transporters, 76 recovery facilities (non e-waste), 85 partial recovery e-waste facilities, 35 on-site incinerators, 3 clinical waste incinerators and 2 secured landfills (Department of Environment, Malaysia, 2008). For Kuala Lumpur, in 2007, there are 11 licensed waste transporters and 6 local off-sites recovery facilities (Laporan Tahunan Jabatan Alam Sekitar Wilayah Persekutuan, Kuala Lumpur 2002-2007).

For clinical waste, the Malaysian government has made it a national policy that all clinical waste must be incinerated. Currently, there are 5 regional medical waste incinerators with capacities of 20 to 500 kg/hour and seven small on-site medical waste incinerators with capacities of 20 to 50 kg/hour. All medical incinerators are built on the premises of the waste generators in order to decrease handling process and exposure of labor to clinical waste.

There are already several units of municipal solid waste mini-incinerators with a capacity of 5 to 20 ton/day operating in the resort islands of Langkawi, Labuan, Tioman and Pangkor. In the past few years, there have been many more proposals to install incinerator plants in Kuala Lumpur, Selangor, Kuantan, Cameron Highlands, Penang and other major towns in the country.

Incineration facility is also available in an integrated hazardous waste treatment plant in Bukit Nanas, in the state of Negeri Sembilan. The plant, officially opened in November 1998 is modeled on the Danish hazardous waste processing plant, Kommunekemi in Nyborg. A hazardous waste management and disposal center which incorporates incineration and secured landfilling of scheduled and hazardous waste has also been planned in Mambong, Kuching Division, Sarawak.

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5.1.5 Competitor Analysis In Malaysia, there are very few manufacturer of incinerator. However, as for global there are so many incinerator industry. Table below show some of Malaysia incinerator manufacturer. UQ INDUSTRIES Human Crenation Furnace

CMTS Cremation Furnace incorporates full automatic - certified company, specializing in control including that of flue gas emissions. It is built to meet emission regulations laid out by European the design and manufacture of Union and World Health Organization. Furnaces and Incinerators. The Cremation furnace operates on natural gas, LP gas or diesel oil and employs the proven two chambers design for clean discharge and reliable operation. CMTS has concentrated on providing a simplified control interface requiring no special operator skills. This heavy duty chamber has a 70 to 90 minutes cycle, depending on case types and offers up to six cremations per 10 hour day, whilst maintaining clean emission throughout each cycle Security Document/ Waste Inceinerator Woodwaste/ Agricultural

CMTS MWS incineration system provides a safe, economical way to ensure total destruction of combustible waste. Some of the advantages that you will find using the incinerator are: The equipment has no moving parts other than the blowers and an auxiliary burner. The equipment is suitable for indoor/outdoor installation Due to the sustained high temperature environment with turbulence from air nozzles, complete combustion of the saw dust waste can be achieved. Saw dust waste can be automatically fed into the incinerator using a screw feeder. 35 | P a g e

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THERMAX offers incineration of Paint Sludge Incineration

non- Destromat pyrolytic incinerators tap Thermax's three decades of expertise in heat transfer and combustion hazardous industrial waste, through technology to treat infectious waste. Based on the an economically feasible and principle of three T's: time, temperature and turbulence, the incinerators are designed to achieve the desired environment-friendly method. Its destruction and removal efficiency (DRE) along with systems offer the additional stringent emission norms laid down by the Central Pollution Control Board. advantage of energy/material recovery. Advantages Multi-chamber design, totally indigenous design, based on controlled air principle, minimum site work for erection and commissioning, adequate instrumentation for safety and control, technical registration with DGS&D, tested and certified by Central Pollution Control board (CPCB), nationwide network of sales and service franchisees JFE Engineering (M) Sdn Bhd Incineration Plant for Sarawak Waste Management

- succeeded in securing a turnkey Sdn Bhd contract of the hazardous waste The incineration plant functions to not only incinerate hazardous waste but also have controlled emissions incineration plant for Sarawak system, resulting in a significant less of harmful biproducts and air pollutants produced. Capacity of the Wastes Management Sdn Bhd. incineration is 60 tons of scheduled waste a day, which is in line with the research data on present and anticipated generation of industrial hazardous waste in Sarawak state. The incineration plant will be equipped with dual fuel burner system capable of utilizing either diesel or landfill gas or both as auxiliaries during incineration process, and will begin its operation within 2014 Paint Sludge Incinerator Project (Perodua Manufacturing Sdn. Bhd) 4 Ton / Day Paint Sludge Incenerator with Bag Filter Flue Gas Treatment (Dioxin Emission less than 0.1 ng/m3 TEQ).

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5.1.6 Customer Analysis The customer for our incinerator product covers most of the industries in Malaysia. The number of hospital in Malaysia is 351, which is 127 public hospitals and 224 private hospital. Plus, there are various manufacturing industries in Malaysia and numerous hotel and restaurant.

Malaysia, as one of the fastest developing countries in the Asia region has, for the last three decades, been experiencing rapid development. One of the key sectors contributing to Malaysias economic growth is the manufacturing industry. For thirty years, the manufacturing sector has become Malaysias key economic generator. Industrial developments in Malaysia started in the early 1960s and in 1996 contributed RM 45.2 billion to the growth domestic product (GDP). Although during the economic recession from 1997 to 1998 manufacturing growth reduced to 13.4% of GDP contribution, the growth has bounced back to 13.5% in 1999 and 21% in 2000. This growth has contributed to 33.4% of Malaysia GDP in 2000 (Malaysia, 2001). The Manufacturing industry will continue as a key sector in the economy of Malaysia with target growth of 8.9% per annum from 2001 to 2005 which will contribute 35.8% to the GDP by 2005 (Malaysia, 2001).

To boost tourism in Malaysia, the government will look into three areas for the plan to materialize, that is to offer the basic needs to the tourists including setting up hotels, restaurants, entertainment and attractive destinations while the second is to put in place good infrastructure to give tourists the feel good experience and thirdly to invest in community development and marketing. The leading operator of hotels in the Asia Pacific plans to expand its hotel by opening 10 new hotels in Malaysia by end-2014. It will make the hotel development in Malaysia also increased.

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5.1.7 SWOT Analysis Strength Incinerator business in Malaysia is considered small and not many competitor in this area of business Our incinerator product provide a great solution to industries out there that needed a solution for their hazardous waste treatment Weakness Industry people prefer send their waste to Kualiti Alam which they have been trusted to dispose their harmful waste. Opportunities The incinerator will give out emission High cost Efficiency decrease if not properly maintain Growing industries in Malaysia, thus increasing the waste generated. Hazardous waste must be treated properly and this is enforced by Malaysia Government Threat People will doubt about the effectiveness of the incinerator compared them to the already marketed incinerator People will question about the environment aspect and impact of the product from the incinerator

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5.2 Marketing Plan
The marketing plan will emphasize the strengths of both the company and the products. INCINER5 Ltd will position themselves as an aggressive, innovative company that use green technology as a driver of economic growth by increasing the national capabilities and green innovations and sustainable development. We design, develop and market waste-to-energy and incineration system services for solid waste disposal throughout Malaysia. INCINER5 Ltd will position themselves in campaign, within industry publications, and the Internet, to reinforce this marketing strategy. The brochures, letterhead, and business correspondence will further reinforce these concepts.

5.3 Marketing Strategy


In order to achieve sales forecast, INCINER5 Ltd must develop an appropriate marketing strategies to generate sales from the target market. The 5P strategies focused by our business are product, price, people, process and physical. We try to do the best marketing strategies to meet the requirement businesss mission and vision and can attract potential customers.

5.3.1 Product Strategy As the new business emerged in the market, INCINER5 Ltd offer offer solutions for the treatment for industrial hazardous waste. Our company will ensure that we provide efficient and feasible incinerators while maintaining the environmental quality and sustainability. We also provide customized solution through reliable, efficient, safe, and cost effective waste-to-energy (WtE) plants that meet the highest environmental standards and to provide excellent services that satisfy our customers requirements.

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5.3.2 Price Strategy Pricing strategy is basically built upon a solid understanding of the 5Cs of pricing: customers, competition, cost, capacity and cycle (business cycle). Therefore, it is necessary for us to gather the necessary data to help us understand better the five factors in the market. After that, we can combine the data with our extensive experiences to create high impact strategies to drive our incinerator service business forward.

5.3.3 People Our expertise will interact with the customers and contact personnel to ensure the good perceptions from customers on the service quality. It is essential for us to realize that the reputation of the brand is bandy around people's mouth.

5.3.4 Process The main processes involved are waste treatment process that involves the combustion of organic substances contained in waste materials. Incineration of waste materials converts the waste into ash, flue gas, and heat. The ash is mostly formed by the inorganic constituents of the waste, and may take the form of solid lumps or particulates carried by the flue gas. The flue gases must be cleaned of gaseous and particulate pollutants before they are dispersed into the atmosphere. In some cases, the heat generated by incineration can be used to generate electric power.

5.3.5 Physical (Evidence) It refers to the experience of consuming our products. When our products exposed to the customer, we must ensure that it containing the promising quality.

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6 Operation Plan

The operation plan is the section of our business plan where we dig more into nuts and bolts of our business. Areas like: location of business factory, transportation trucks, legal documents and permit for us to run the waste management company, personnel, storage system and providers/suppliers.

6.1 Location
Our incineration plant is located in Senawang Industrial Park, Senawang. Senawang industrial park is strategically located next to North South Expressway. Therefore, this location has provided us a convenient accessibility to and from North-South Expressway which benefits the supply chain of businesses and property appreciations. Besides, Senawang Industrial Park is an industrial area comprising many detached factories. Some of the established companies operating within the industrial estate include Phoenix Lumber Industry Sdn.Bhd., Seremban Furniture Industry Sdn.Bhd., HeveaPac Sdn.Bhd., Sing Chuan Aik Transport Sdn.Bhd., Sin Ban Huat Sawmill, Kim Lee & Son Sawmill and so on.

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6.2 Rental
We have rented an open space landed factory in Senawang industrial park. The factory plant site is almost rectangular in shape that encompassing a provisional land area of approximately 15,081 sq. ft. The monthly rental for this land is RM10, 000.

6.3 Transportation
We offer customers a complete, one-stop source for the transport and disposal of hazardous waste materials. Our experienced waste- handling specialists provide the meticulous attention necessary to ensure each delivery is handled safely and efficiently. We have hired 6 experienced truck drivers to help clients pick up their waste on site and transfer the trash in a safely manner. Besides, we provide a fully tracked waste service so that our customer can be rest assured that their waste will be dealt in a responsible manner.

6.4 Legal Requirement


In order to start our waste management company, we have complied with waste disposal industry licenses that are required by the legislation and administered by various government agencies, statutory bodies and local authorities. We managed to gain the specific license of approval to install air pollution control equipment for our incineration plant. Other than that, our business activities is restricted and controlled under the Environment Quality Act, 1974.

Under the Environmental Quality Act (EQA), 1974 and the Regulations thereunder, industrial activities are required to obtain the following approvals from the Director General of Environmental Quality prior to project implementation: a) Environmental Impact Assessment reports - under Section 34A of the EQA, 1974 (for prescribed activities); b) Site suitability evaluation (for non-prescribed activities); c) Written permission to construct - under Section 19 of the EQA, 1974 (for prescribed premises-scheduled wastes treatment and disposal facilities, crude palm oil mills and raw natural rubber processing mills); 43 | P a g e

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d) Written approval for installation of incinerator, fuel burning equipment and chimney under Environmental Quality (Clean Air) Regulation, 1978, EQA, 1974; and

e) License to use and occupy prescribed premises and prescribed conveyances -under
Section 18 of the EQA, 1974.

6.5 Personnel
It is important for the company to hire people to operate the incinerator activities inside the plant. Besides, in order to provide a good waste disposal services, we need talents youth to help our marketing team to approach potential clients throughout Malaysia. Therefore, we have hire 1 mechanical engineer, 1 chemical engineer, 2 on site supervisors, 4 operators and 6 trucks drivers to operate the incinerator plant. Furthermore, we also have hired a marketing team consists of 4 sales executives to meet our sales target in the market.

6.6 Storage System


We have partnered with Alam Flora Sdn Bhd to offer our client sturdy storage container units and deliver it right at customer door. The Alam Flora portable storage units are secure, all steel and water proof. All the disposed waste will be stored as well in the warehouse which located same land area with incinerator plant. The warehouses are 100% secure and climate-controlled.

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6.7 Provider/ Supplier
In order to provide an effective service at low prices, we must find suitable suppliers. Suitable supplier or provider can help us to uphold our quality of services. However, it is difficult to find match suppliers with our business concept. A good supplier will provide our business with top products yet in low costs.

Type of supplies Natural Gas Fuel

Companies Shell Malaysia

Contact Tel: Fax: 1300 1300 22 13 0003 0041

E-mail: fuelsorders-my@shell.com

Portable Units

Container Alam Flora Sdn Bhd

Tel: Fax:

1800 03

88 2052

7472 8144

website: http://www.alamflora.com.my

Lorry Service

Huat Trading Sdn Bhd Tel: Fax: 03

017-9393 3045

234 6577

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6.8 Operating Cost

Type Of Cost Incinerator Plant Capacity 8 tonnes (Industrial Waste, Medical Waste)

Cost (RM) 150,000 (operating cost RM 40-60 per 500 kg)

Gasification Plant Medium (Organic Waste)

250,000 (operating cost RM 70-90 per 500 kg)

Land Rental (Open Land)

10,000 (per month)

Typical Fuel Cost: (i) Diesel (ii) Natural Gas 1.70 per litres 1.30 per litres

Cost of Labors: (i) CEO (Chief of Executive Officer) (ii) CFO (Chief of Financial Officer) (iii) Operating Director (iv) Marketing Director (v) Chemical Engineer x1 (vi) Mechanical Engineer x1 (vii) Sales Executives x4 (viii) Supervisors x2 (ix) Operators x4 (x) Lorry Driver x6 9,000 9,000 7,000 7,000 3,000 3,000 2,500x 4 = 10,000 2,300x 2 = 4,600 1,800x 4 = 7,200 2,800 x 6 = 16,800

Maintenance Cost

1,500 per month

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6.9 Cost Rebate

The incinerator plant and gasification plant are operated in energy recovery system. Therefore, we managed to use the converted energy to generate and supply our factory electricity usage. Besides, the by-product of gasification plant- syngas, we have used it to generate electricity by the means of turbine steams and sell it to TNB as a renewable energy. We are said to be sustainable because we can generate our own electricity to meet our own energy usage. Every month, we are capable to produce constant amount of extra electricity and sell it to local TNB. This helped us to gain another profit of RM3.00 per month.

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7 Management Organization
7.1 Management Team and Key Personnel
The INCINER5 Ltd management team consists of the CEO, and four managers.

AHMAD NAZRUL HAKIMI BIN IBRAHIM

CEO

YEU WEE CHEK

TEE YEE YEONG

Operation Manager

Financial Manager
NOOR ZAIYAN BINTI MISYAN

Human Resources Manager


MAZNI BINTI JAMALUDIN

Marketing Manager

The Chief Executive Officer (CEO) of INCINER5 Ltd is Ahmad Nazrul Hakimi Bin Ibrahim, Bachelor of Civil Engineering, graduated from National University of Malaysia in Selangor, Malaysia. He also a Master holder of Entrepreneurship and Business, graduated from University of Michigan, United States. Currently, he owned a construction and civil engineering company at Penang. He business was done successfully and he planning to challenge herself by opening a business incinerator concept. Her entrepreneur experience in starting and managing a business makes her the key person in INCINER5 Ltd. The Marketing Manager of INCINER5 Ltd is Mazni Binti Jamaludin. She is a Master of Management, graduated from University of Cambridge in United Kingdom. She has 10 years experience in marketing department of manufacturing industry and she had been marketing 48 | P a g e

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manager for 5 years. She will be responsible in all about the market research and marketing strategies for our business. Her extensive experience in marketing for sure can help in branding our business and is the key tools for the advancement of our business.

The Financial Manager of INCINER5 Ltd is Tee Yee Yeong. She is a Bachelor of Accounting and Finance, graduated from University of Yale in the United State of America. She has been involved himself in banking and finance area for more than 10 years. Besides that, she had been the financial consultant in her previous working company. She will be responsible in all the finance and cash flow in our business. Her sensitivity towards world economy and her experience in financing would help in the financial management of our business and help our company to gain most profit with lesser investment.

The Human Resources Manager of INCINER5 Ltd is Noor Zaiyan binti Misyan. She is a Bachelor of Human Resource Management, graduated from Monash University in Australia. She had been involved himself in human resources management for an international company, Sony for more than 10 years. With her expertise in human resources management and group working experiences, she will be responsible for all our intake workers from staff until the committee board of our company. Her perfect view point on workers will helps our company to gain the strongest team of employees for our wedding services expertise.

The Operation Manager of INCINER5 Ltd is Yeu Wee Chek. He is a Bachelor of Business Administration, graduated from Limkokwing University, Malaysia. Being an operations manager involves overseeing and having responsibility for all the activities in the organisation which contribute to the effective production of goods and services. He has been working with Nestle for 5 years. He is expected to continually monitor and improve the overall performance of the operation.

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8 Financial Plan
8.1 Financial Resources
RM Partners Contribution Vincent Tan Ahmad Nazrul Hakimi Bin Ibrahim Yeu Wee Chek Mazni Binti Jamaludin Tee Yee Yeong Noor Zaiyan binti Misyan Loan Public Bank Hong Leong Bank Total Finance Resources 2,000,000 600,000 600,000 600,000 600,000 600,000 5,000,000 200,000 300,000 500,000 5,500,000 RM

8.1.1 Partnership Profit Sharing Percentage Partners Vincent Tan Ahmad Nazrul Hakimi Bin Ibrahim Yeu Wee Chek Mazni Binti Jamaludin Tee Yee Yeong Noor Zaiyan binti Misyan Profit Sharing Percentage 40 12 12 12 12 12

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8.1.2 Bank Loan Public Bank Loan Interest Rate Payback Period Year 0 1 2 3 4 5 6 7 8 Interest (RM) 10 000.00 8750.00 7500.00 6250.00 5000.00 3750.00 2500.00 1250.00 : : : RM200,000 5% 8 years Amount to be paid (RM) 35 000.00 33 750.00 32 500.00 31 250.00 30 000.00 28 750.00 27 500.00 26 250.00 Amount Carried forward (RM) 200 000.00 175 000.00 150 000.00 125 000.00 100 000.00 75 000.00 50 000.00 25 000.00 0.00

Principal (RM) 25 000.00 25 000.00 25 000.00 25 000.00 25 000.00 25 000.00 25 000.00 25 000.00

8.1.3 Bank Loan Hong Leong Bank Loan Interest Rate Payback Period Year 0 1 2 3 4 5 6 7 Interest (RM) 15 000.00 13 125.00 11 250.00 9 375.00 7 500.00 5 625.00 3 750.00 : : : RM300,000 5% 8 years Principal (RM) 37 500.00 37 500.00 37 500.00 37 500.00 37 500.00 37 500.00 37 500.00 Amount to be paid (RM) 52 500.00 50 625.00 48 750.00 46 875.00 45 000.00 43 125.00 41 250.00 Amount Carried Forward (RM) 300 000.00 262 500.00 225 000.00 187 500.00 150 000.00 112 500.00 75 000.00 37 500.00 51 | P a g e

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8 1 875.00 37 500.00 39 375.00 0.00

8.2 Pro Forma Statement of Financial Performance


BALANCE SHEET FORECAST FOR THE YEAR 2013, 2014, 2015 2015 RM ASSETS NON-CURRENT ASSETS Property, plant and equipment CURRENT ASSETS Trade receivables Other receivables and deposits Cash and bank balances TOTAL ASSETS EQUITY AND LIABILITIES EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE COMPANY Share capital Retained profits TOTAL EQUITY NON-CURRENT LIABILITIES Hire purchase payables Bank borrowing CURRENT LIABILITIES Trade payables Other payables and accruals Amount owing to directors Hire purchase payables Bank borrowing Current tax liabilities TOTAL LIABILITIES 5,730,000 600,000 2,780,000 50,000 100,000 200,000 9,460,000 10,180,000 5,100,000 500,000 2,565,750 50,000 100,000 15,000 8,330,750 9,130,750 4,900,000 400,000 1,540,000 50,000 100,000 10,000 7,000,000 7,700,000 520,000 200,000 720,000 480,000 320,000 800,000 300,000 400,000 700,000 200,000 2,764 202,764 200,000 (21,075) 178,925 200,000 (30,500) 169,500 7,935,000 487,000 1,055,451 9,477,451 11,102,764 6,900,000 320,000 1,125,175 8,345,175 10,109,675 6,000,000 110,000 1,285,000 7,395,000 8,569,500 1,625,313 1,764,500 1,174,500 2014 RM 2013 RM

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TOTAL EQUITY AND LIABILITIES 11,102,764 10,109,675 8,569,500

8.3 Pro Forma Statement of Comprehensive Income


INCOME STATEMENT FORECAST FOR THE YEAR 2013, 2014, 2015

2015 RM

2014 RM

2013 RM

REVENUE COST OF SALES GROSS PROFIT OTHER OPERATING INCOME SALES AND DISTRIBUTION COSTS ADMINISTRATIVE EXPENSES PROFIT FROM OPERATIONS FINANCE COSTS PROFIT BEFORE TAX INCOME TAX EXPENSE PROFIT FOR THE YEAR

4,245,225 (3,769,125) 476,100 3,600 (212,261) (213,600) 53,839 (10,000) 43,839 (20,000) 23,839

3,691,500 (3,277,500) 414,000 3,600 (184,575) (203,600) 29,425 (10,000) 19,425 (10,000) 9,425

3,210,000 (2,850,000) 360,000 3,600 (160,500) (193,600) 9,500 (10,000) (500) (10,000) (10,500)

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8.4 Pro Forma Statement of Changes in Equity
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR 2013, 2014, 2015

Share capital RM At 1 January 2013 Profit for the year Dividends Issue of shares during the year Change in At 31 December 2013 Profit for the year Dividends Issue of shares during the year Change in At 31 December 2014 Profit for the year Dividends Issue of shares during the year Change in At 31 December 2015 200,000 200,000 200,000 200,000

Retained profits RM (20,000) (10,500) (30,500) 9,425 (21,075) 23,839 2,764

Total RM 180,000 (10,500) 169,500 9,425 178,925 23,839 202,764

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8.5 Pro Forma Cash Flow Statement
CASH FLOW STATEMENT FOR THE YEAR 2014, 2015 2015 RM CASH FLOWS FROM OPERATING ACTIVITIES Profit before tax Adjustments for:Depreciation of property, plant and equipment Interest expenses Operating profit before working capital changes (Increase)/decrease in trade receivables Decrease/(increase) in other receivables and deposits Increase/(decrease) in trade payables Decrease in other payables and accruals (Decrease)/increase in amount due to directors Cash from/(used in) operations Tax paid Interest expenses paid Net cash from/(used in) operating activities CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property, plant and equipment Net cash used in investing activity CASH FLOWS FROM FINANCING ACTIVITIES Repayment of hire purchase payables Repayment of term loan Net cash from financing activities NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR CASH AND CASH EQUIVALENTS AT END OF YEAR Cash and cash equivalents comprise the following: Cash and bank balances 2014 RM

43,839

19,425

700,000 100,000 843,839 (910,000) (167,000) 630,000 100,000 214,250 711,089 (70,000) (50,000) 591,089

500,000 100,000 619,425 (900,000) (210,000) 200,000 100,000 1,025,750 835,175 (70,000) (50,000) 715,175

(560,813) (560,813)

(775,000) (775,000)

(50,000) (50,000) (100,000) (69,724) 1,125,175 1,055,451

(50,000) (50,000) (100,000) (159,825) 1,285,000 1,125,175

1,055,451

1,125,175

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8.6 Break Even Analysis
Break-even Analysis RM 3,219,000 Assumption RM 214,600 20% of Average Selling Price RM 56,000

Break Even Sales Fixed Cost Variable Cost Average Selling Price

Therefore, from with the break even sales, we compare to the forecast sales of year 2013, 2014 and 2015. Forecast sales are as summarized as below: Year 2013 2014 2015 Sales RM 3,210,000 RM 3,691,500 RM 4,245,225

As we can see, year 2013 does not achieve the target break even sales and there will be suffering loss. However, sales will be picking up for the following year. Therefore in no time, the company will be profiting in covering the previous loss. This shows that this is a healthy growing company. Break Even Chart

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8.7

Financial Ratio Analysis


Ratio Formula 2014 (RM) a) Owners Return on investment(ROI) Return on asset(ROA) Net Income Owners Equity Net Income Total Assets 9,425 178,925 = 5.3% 9,425 10,109,675 =0.09 % 23,839 202,764 = 11.8% 23,839 11,102,764 = 0.21% 2015 (RM)

b) Manager Net profit margin Net Income Sales 9,425 3,691,500 = 0.26% 23,839 4,245,225 = 0.56%

c) Short-Term Creditors Current ratio

Current Assets Current Liabilities

8,345,175 8,330,750 = 1.0

9,477,451 9,460,000 = 1.0

d) Long-Term Creditors Debt-to-equity ratio

Total Debt Total Equity EBIT Total Interest Charges

9,130,750 178,925 = 51.0 29,425 10,000 = 2.9

10,180,000 202,764 = 50.2 53,839 10,000 = 5.4

Times-interest-earned ratio

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8.8 Highlights

Sales Profit Forecast


$4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $Year 2013 Year 2014 Year 2015 Sales Gross Margin Net Profit

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9 Business Risks
There are some risks and challenges to be addressed to realize this project. This study has identified risks and challenges below, which are described here with actions to be taken for reducing the risks and solve the challenges.

9.1 Securing of Economic Efficiency


Economic efficiency can be secured only with waste treatment consignment fees that guarantee an appropriate profit rate for continuity of the service. However, with a tipping fee set at an unreasonably high level, we would fail to win an order in competition. To obtain an order, efforts must be made to reduce costs of construction, and operation and maintenance in a vigorous manner.

9.2 Quantity and Quality Risks of Municipal Solid Waste


Among risks related to the securing of economic efficiency, the most critical are those related to quantity and quality of municipal solid waste. That is, without an amount of municipal solid waste secured as assumed in a business plan, or without quality, especially a calorific value, of waste as assumed, the business operator would fail to earn profits as prescribed. Even when a contract specifies that a certain amount of waste shall be secured, in reality the target may be missed. In addition, conditions of wastes calorific value may not be specified by the Malaysian government, but left to the business operators decision, instead. To avoid such risks, it would be appropriate to take into account the following point in a tender and/or contract specifications. Introduction of a basic fee system: In the system, tipping fee consists of fixed fee and variable fee. The fixed fee should be paid for design, construction, operation, and maintenance, regardless of the amount of waste which is treated.

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9.3 Clarification of the Scope of the Government Side
Development of the infrastructure around a project site is another critical risk. For instance, delay in development of access roads to a plant would cause delay in the start of the project, making a large negative impact on its profitability.

What is listed below should be specified in a contract as being included in the scope of the government side. In addition, compensation for a breach should also be specified in the contract. 1. Project permission applications 2. Securing and having ownership over the site 3. Surveying and geological survey 4. Site preparations 5. Development of the infrastructure (access roads, electricity, water, etc.) 6. Measures to nearby residents 7. Securing predetermined volume of municipal waste, and collection and transport of municipal waste to the plant 8. Preventing collection of unsuitable materials

9.4 Inflation Risk


Inflation is also a critical risk to obtaining prescribed profits from a project. An inflation rate higher than assumed might prevent a project from generating prescribed profits, a possibility that should be taken into account in concluding a contract. In estimating those project costs which are sensitive to inflation, such as personnel and utilities expenditures, it is desirable to assume an inflation rate during the entire project duration. Setting a tipping fee based on the assumed inflation rate would be an option. This way of setting a tipping fee is adopted for this study in its financial and economic analysis. In Japan, many of the PFI project contracts have a stipulation that when inflation goes above a prescribed rate, consignment fees shall be revised based on a certain price index.

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9.5 Risks Related to Residents Opposition Campaign
A residents opposition campaign is also one of the critical risks. For this study, we invited many local experts and academics to collect information and obtain opinions from them. The research has found that in general, the government of Malaysia should start working with nearby residents at the earliest possible stage. Before it announces an international tender, it needs to spend enough time for advance explanations and dialogs with nearby residents and communities, together with work to concretize a project and pick out candidates for a project site. It is also important that after the project gets started, the Malaysian government should play a major role in offering information to residents and setting up Joint Committee and other forums to exchange opinions with them.

9.6 Local Business Partner


For realizing this project, it is important to select appropriate local business partners. This is one of the challenges to be addressed with top priority.

9.7 Prospects of loans


This study includes research for loans. We will have further negotiations with financial institutions to realize this project.

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10 Conclusion
In conclusion, efforts should be done by all parties to continue to develop this incinerator business. Short-term goals INCINER5 Pte Ltd is to create awareness among people about the use of products that are produced by INCINER5 Pte Ltd and continuously enhancing the effectiveness of this product should be reached in advance. If short term goal achieved, the medium-term goals which are able to attract more buyers, increase the number of agents that are registered and thus will be able to expand in foreign Regions like wings of Thailand, Indonesia and others will follow in the back. Logically, long-term goals who want to maintain the quality of the environment and sustainability will be able to achieve. We hope, INCINER5 Pte Ltd continued to higher level as provider customized solution through reliable, efficient, safe, and cost effective waste-to-energy (WtE) plants that meet the highest environmental standards and to provide excellent services that satisfy our customers requirements and to be innovative leader in the field of combustion technology for the biomass industry.

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11 Appendix

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