EXECUTIVE SUMMARY

Tagasalo will collect, recycle/compost, and market waste from municipality

waste processing plants for use as a consumer good. This recycled product will
meet two critical needs:

1. It will give municipalities a feasible and cost effective alternative to

landfilling the waste, and
2. It will help meet the growing demand for organic soil enhancers and
fertilizers. The material that will be recycled is human waste sludge.

Our recycled waste will be targeted toward fertilizer manufacturers, nurseries,

landscapers, farmers, government agencies, golf courses, and others. All of
these potential customers will benefit from the compost's numerous soil
enhancing characteristics.

One of the most attractive aspects is that the business is projected to attain a
strong cash position and achieve profitability in the first year of operation. Due
to a large need for these products and services, and a lack of direct
competition, our projection of quick profitability is attainable.

Our in-depth research pertaining to human waste's positive soil enhancement

characteristics and its many potential uses is well advanced. The concept has
been tested on a small scale and the results, upon analysis, were found to be
high quality compost. Research will be an on-going process for the company;
one particular area of interest is the possibility of qualifying the product as a
fertilizer. In this case, the profitability of the product would nearly double.

We already have an advance order for 500 tons, and one fertilizer manufacturer
and a large landscaper have committed to purchasing 600 tons of our product
annually. Additionally, various municipalities have expressed keen interest in
paying us to accept their waste.

I. MISSION

Tagasalo’s mission is threefold. Our first responsibility is to ensure the

financial well-being of the business. Second, is to provide municipalities with
an economical, alternative for the disposal of human waste sludge. Third, is to
provide a top quality, recycled material to the consumer so that they may
benefit from compost's many good properties and organic elements. In
addition, we hope to build in the consumer a positive feeling about the
feasibility of using recycled human sludge as a fertilizer.

II. OBJECTIVES
1. Flush sales for the first twelve months of operations and growing
each year thereafter.
2. Establish the recycling facility in San Fernando City, La Union; to
include six composting units in Year 1.
3. Open additional facilities in Year 2 and Year 3 in the nearby towns.
4. Continue to market Tagasalo by contacting and soliciting business
from additional municipalities and compost using customers.

III. COMPANY SUMMARY

The legal name of the company will be TAGASALO, LLC. Tagasalo will be
formed as a Limited Liability Company in Biday, San Fernando City, La Union.

A. Company Ownership

Mid-Atlantic Recycling is owned by its founder and president, GP Ramon

Junio. Mr. Junio will be an active participant in management decisions.
 B. Company Locations and Facilities

Tagasalo will be situated at Biday, San Fernando City, La Union, along the
high-way near Manna Residences. As the business expands to additional
counties in subsequent years, we will need to lease property on which to site
our facilities.

IV. PRODUCTS AND SERVICES

Our products and services offer needed solutions to municipalities and the
market for organic soil enhancement products. Tagasalo will be the market
leader as the first company in the region to collect, compost, and recycle
human waste sludge for use as a fertilizer and a soil enhancer. Tagasalo
realizes that consumers today are more conscious of recycling and of their
environment. Because of this trend, there is a growing trend among consumers
to move away from traditional chemical based fertilizers more natural organic
materials.

We will offer one major service and major product. Our major service will be to
offer municipalities an alternative means for disposing of human waste sludge
generated in waste treatment plants. Our major product will be recycled
(composted) human waste sludge for use as a fertilizer.

V. START-UP REQUIREMENTS

Our start-up costs will be PHP 50,000,000. The funds will be primarily used for
the following:

START-UP EXPENSES (in Philippine Peso)

Legal 25,000
Phone/utilities deposits 25,000

Licenses/tax deposit 200,000

Insurance 50,000

Brochures/sales literature 25,000

Advertising 125,000

Employee salaries 834,000

Skid boxes, 15 @ 150,000 2,250,000

Welding and cutting torch 500,000

Furniture and supplies 250,000

Website development 75,000

Miscellaneous 250,000

TOTAL START-UP EXPENSES 4,609,000

START- UP ASSETS (in Philippine Peso)

Cash Required 4,045,000

Start-up Inventory 0

Other Current Assets 0

Long-term Assets 41,346,000

TOTAL ASSETS 45,391,000

TOTAL REQUIREMENTS 50,000,000

 VI. CAPITAL ASSET REQUIREMENTS

Capital Asset Purchases (in Philippine Peso)

Processing Plants 2 x 9,523,000 19,046,000

Processing Plants built in-house 2 x 2,000,000 4,000,000

Sheds 48'x72' 4 x 925,000 3,700,000

Skid Truck 2 x 3,650,000 (avg price) 7.300,000

Backhoe 2,000,000

Front-end Loader 2 x 2,500,000 5,000,000

Tandem Dump Trailer 300,000

Total 41,346,000

VII. MANAGEMENT SUMMARY

The management team of Tagasalo will be comprised of the following executive

positions:

President: GP Ramon Junio, CPA

Mr. Junio finished Bachelor of Science in Accountancy. He has 40 years’
experience as a Vice President- Administration in one of the known
establishment also in the same line of industry. With that he is familiar with
the process from start to finish. In this business he will be responsible for
providing strategic leadership for the company by working with the Board and
other management to establish long-range goals, strategies, plans and policies.

Chief Finance Officer: Shaira Chrizelle Espita, CPA

Ms. Espita is also a graduate of Bachelor of Science in Accountancy and
has 20 years’ working experience as a Chief Financial Officer in one of the
successful business here in the Philippines. The CFO's duties include tracking
cash flow and financial planning as well as analysing the company's financial
strengths and weaknesses and proposing corrective actions.

Contoller: Patricia Jen Romulo, CPA

Ms. Romulo is a graduate of Bachelor of Science in Accountancy and has
been working as a controller in one known business here in the Philippines for
20 years. She would be responsible for overseeing the business and financial
operations of an institution and shares responsibility for the organization’s
economic and financial performance. The controller would perform financial
analysis, develop financial planning processes and design and implement
overall business plans. She would also work as partners with the financial
department, sometimes working directly with the Chief Financial Officer, and
play a key role in supporting them.

Financial and Business Analyst: Kathleen Joyce Oriente, CPA, MBA

Ms. Oriente is a graduate of Bachelor of Science in Accountancy and also
has obtained a Master’s in Business Administration. She has been working as
a Financial and Business consultant in one of the known Consulting firms in
the Philippines. The role of the Financial and Business Analyst is to evaluate
financial reports, such as income statements, cash flow statements and
balance sheets, and determining how a company’s finances will impact
business operations. They may also facilitate decision making by finance and
operations personnel or investors by presenting data analysis and
interpretation in clear, compelling ways.
At Tagasalo, the management team believes that this unique way of recycling
will change the way consumers look at fertilize and compost products. As with
any company, the responsibilities and duties of the management team are very
important and cannot be taken lightly. Tagasalo’s management will work
together as a team to create a successful company.

VIII. PERSONNEL SUMMARY

The Personnel Plan reflects the staffing levels required to manage and achieve
the anticipated levels of production, and establish the customer base needed to
achieve the revenues projected and reach profitability.

We have projected a staff of 37 employees in 2018. This includes the 3

management, 3 truck drivers, 4 equipment operators, 2 laborers, 2 metal
workers, and 1 secretary; this staff of 15 will operate the recycling facility. In
addition, a staff of seven, including one supervisor and 6 laborers, will provide
sawdust, wood chip, and bark removal at the International Paper Company on
a full time basis; the contract for this work has been won. The sawdust
materials collected will be used in the composting process.

In addition to the above, Tagasalo plans to hire a local trucking firm to deliver
compost materials to customers. This is expected to result in the creation of
two additional jobs.

Therefore, the total employment impact of this venture is expected to be the

creation of 39 jobs in the first year of operation.
PERSONNEL PLAN

YEAR 1 YEAR 2 YEAR 3

Management/supervisory 6,500,000 12,900,000 21,000,000

Production labor 4,320,000 7,045,000 9,120,000

Sawdust collection team 2,634,000 3,500,000 4,200,000

Other 0 0 0

TOTAL PEOPLE 39 78 156

Total Payroll 13,454,000 23,445,000 34,320,000

IX. FINANCIAL PLAN

Our financial plan is based on receiving several loans to purchase/fabricate the

production equipment, provide initial operating capital, and establish the
customer base.

We will achieve profitability early in the first year and due to the expected high
growth rate, we will realize strong profits on sales by year three.

START-UP FUNDING

Start-up Expenses to Fund 4,609,000

Start-up Assets to Fund 45,391,000

TOTAL FUNDING REQUIRED 50,000,000

Assets

Non-cash Assets from Start-up 41,346,0000

Cash Requirements from Start-up 4,045,000

Additional Cash Raised 0

Cash Balance on Starting Date 4,045,000

TOTAL ASSETS 45,391,000

Liabilities and Capital

Liabilities

Current Borrowing 0

Long-term Liabilities 42,500,000

Accounts Payable (Outstanding Bills) 0

Other Current Liabilities (interest-free) 0

TOTAL LIABILITIES 42,500,000

Capital

Planned Investment

Owner 7,500,000

Other 0

Additional Investment Requirement 0

TOTAL PLANNED INVESTMENT 7,500,000

Loss at Start-up (Start-up Expenses) (4,609,000)

TOTAL CAPITAL 2,891,000

TOTAL CAPITAL AND LIABILITIES 45,391,000

Total Funding 50,000,000

X. MILESTONE

Milestone Start Date End Date

Complete business plan 11/7/2017 1/1/2018

Receive all funding 12/24/2017 3/29/2018

Site preparation 4/1/2018 4/15/2018

Form LLC 3/15/2018 4/15/2018

Composter set up 4/15/2018 4/30/2018

Order/fabricate 3/15/2018 4/30/2018

composters

Hire staff 4/1/2018 6/30/2018

Begin production 7/1/2018 -

XI. STRATEGY AND IMPLEMENTATION SUMMARY

A. Value Proposition

1. Value proposition for municipalities: We offer a service that is a

cost effective, budget saving means to addressing a growing waste
disposal problem.
2. Value proposition for end users of compost material: Compost is
a valuable soil amendment that improves many soil properties, such
as porosity, structural and thermal stability, water retention,
resistance to wind and water erosion, and tillage. Compost also
decreases soil crusting, regulates storage and release of nutrients,
enhances the development of beneficial microorganisms, builds up
plant resistance to parasites and disease, and promotes faster root
development. Plants and crops treated properly with compost may
produce higher yields and have less weed growth. Chemical
fertilizers do not offer this value.

B. Competitive Edge

1. Cost: The price of our compost product is much less than chemical
fertilizers.
2. Organic product: We offer an organic product which is responsive to
current market trends. This includes all of the advantages organics
offer over chemicals.
3. Recycled: Recycled products characterize a "caring company" and
are more appealing to the customer's changing attitude toward
organic fertilizer as opposed to chemical fertilizer.
4. Elimination of disposal issues: Municipalities now have a waste
that takes up landfill space. Our service recycles the waste which
saves valuable landfill space.
 5. More effective between application times: Normal times between
applications can range from two to four weeks. Our product lasts for
many months, thereby saving the customer time and money (no
additional expenditure for more product).

C. Marketing Strategy

The marketing strategy is the core of the main strategy:

1. Emphasize high value, high quality products and services.

2. Build a relationship oriented business.
3. Focus on municipalities, fertilizer manufacturers, landscapers,
nurseries, and the federal government as key initial markets.

D. Promotion Strategy

1. Publicity: We will send news releases to all of the major newspapers

in the Philippines. Publication of news articles about Tagasalo will
lend great credibility and be an excellent way to let all target markets
know about this new, innovative business and the solutions it
provides for municipalities and users of compost or fertilizers. We will
similarly seek publicity in the form of news stories from local radio
and television stations.
2. Advertising: We will utilize direct mail and face-to-face promotional
strategies to raise awareness about our products and services in the
target markets. Newspaper advertising may also be used. Radio and
television ads are not certain; we will evaluate their effectiveness
before further implementation.
3. Internet: We will have a content heavy website geared toward
educating potential customers about the benefits of our products and
 services. All literature, business cards, etc. will include our website
and e-mail address information.
4. Alliances: We intend to form alliances with fertilizer manufacturers to
use our product in their fertilizer and/or distribute our product for
us.