Helical gearboxes H4 ustment drives Conveyor systems Bucket conve H4FV-20-C

Flender/Flender Gear Units/Helical gearboxes H4

l. The low agricultural yields are largely attributable to continuing drought conditions and the irregular water application that has resulted from problems in the central pivot irrigation system. Additional factors contributing to IVJ' financial losses include excess personnel, high labor costs, and continued low world sugar prices. 3. Potential for Improved Profit Performance An evaluation of agricultural and industrial practices at Victoria de Julio and discussions with management indicate that substantial opportunities exist for cost reductions and improved operating efficiency, including: 0 Continued rationalization of personnel leve! * More effective management of the central pivot irrigation system Expansion of cultivated land (thereby increasing factory utilization) Increased purchases of lower cost outgrower (colono) cane 0 Better field preparation and management 0 Wiring of central pivots to factory power sources, leading to less dependence on the national grid * Improved cane varieties In addition, Victoria de Julio has the potential to expand power generation and sell excess power to the national grid. The potential revenues from expanded power ii Ingenio Victoria De Julio (IVJ) Land Distribution ml op Udveoe TtlDeveloped Undeveloped Total Developed Undeveloped Total IVJ 8,9 3,0 1,9 3,2 6 3,8 1,1 3,6 1,7 Growers 4,4 1,2 5,6 9 2 1,2 5,3 1,4 6,8 1,3 4,2 1,5 4,1 8 5,0 1,5 5,0 2,5 Required 2,4 2,4 -- 4,9 4,9 7,4 -- 7,4 Plan 1,3 6,6 2,0 4,1 5,8 1,0 1,5 1,4 3,0 -" 9,9m 7,9Irnipa generation are dependant on the purchase price negotiated between IVJ and INE, the national electric company. The cash flow projections developed by PW/IPG indicate that Victoria de Julio has the potential to become profitable and generate positive cash flows if reasonable operating efficiencies are achieved. The expansion of cultivated land to 2,0 manzanas and expanded electricity generation would also increase the value of the mi