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Coffee Investor Overview Brief

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Logistics LatinAmerica (LLA) •

Logistics LatinAmerica (LLA) is an employee-owned venture capital firm, investment broker and incubator for Latin America businesses

LLA is headquartered in Medellín, Colombia and consists of the following legal entities:

• A Nevada Limited Liability Corporation • A Colombian S.A.S. company

• Incubates start-up companies from concept to spin-out by integrating high-value logistics capabilities; air, marine, and ground transportation; and technology solutions throughout Latin America •

Holding company for operating divisions currently focused on importation & exportation of coffee and other food products ETHICAL BEHAVIOR • OUTSTANDING EXECUTION © Logistics LatinAmerica, S.A.S.


LLA Investment Framework

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Logistics LatinAmerica Leadership Chief Executive Officer James Cummiskey

Chief Operations Officer Roger Roland Vice President Business Development Ralph Rodriguez

Vice President Investment David Sewell

Vice President Coffee Technology Brendan Riley

Deputy of Operations Alejandro Duque

Director, Marketing/Comm Sandra Carrera

Director of Internet Sales Cathy O´Sullivan

Corporate Counsel Catalina Romero

= Principal Owner

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Logistics LatinAmerica Principals • James Cummiskey – Chief Executive Officer (CEO), Logistics LatinAmerica – Managing Director, Coffee LatinAmerica – MBA Technology / Masters Computer Science – Boeing Executive leading a $100M business serving the US military and intelligence community – US Marine Corps Veteran w/ significant infantry, communications, and DoD acquisition expertise – Executive at multiple start-up businesses funded by Microsoft, Qualcomm & Sprint – Senior Vice President / CEO of Aerospace/Defense manufacturing business – FAA Airline Transport Pilot (ATP) and Multi-Engine Instrument Flight Instructor – TS/SCI Security Clearances – SCAA Certificated Q-Grader

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Logistics LatinAmerica Principals • Roger Roland – Chief Operations Officer (COO), Logistics LatinAmerica – Masters Systems Engineering – BS Engineering, US Naval Academy (‘85) – US Marine Corps Veteran w/ significant intelligence, communications, and DoD acquisition expertise – Lockheed Martin Program Manager (PM) leading a project team for a complex $67M aviation ISR system – Deputy PM for award-winning $30M rapiddevelopment avionics test platform effort – Certified Manager – TS/SCI Security Clearances

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Logistics LatinAmerica Principals • Ralph Rodriquez – Vice President of Business Development, Logistics LatinAmerica – 31 years in Aerospace – Logistics, Program Management, Engineering, and Security specialist at Lockheed Martin – Managed Programs totaling $20 Million USD – U.S. Air Force & Navy Veteran – Certified Manager – TS/SCI Security Clearances

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Coffee LatinAmerica (CLA) An operating division of Logistics LatinAmerica, S.A.S. that provides the highest quality specialty coffee from Latin America to international customers using both Virtual DirecTrade™ and direct sales channels.

http://coffeelatinamerica.com/ ETHICAL BEHAVIOR • OUTSTANDING EXECUTION © Logistics LatinAmerica, S.A.S.


Tierra Cafetera (TC) An operating division of Logistics LatinAmerica, S.A.S. that manages coffee farms for real estate investors in Latin America while using bestpractice organic farming techniques to improve the yield and quality of coffee.

http://tierracafetera.com/ ETHICAL BEHAVIOR • OUTSTANDING EXECUTION © Logistics LatinAmerica, S.A.S.


Investment Across the Entire Value Chain “From Seed to Cup” Tierra Cafetera

Coffee LatinAmerica

Responsibilities:

Responsibilities:

Property Ownership Property Management Producer Micro-financing Coffee Yield Coffee Processing Coffee Drying Coffee Quality

Coffee Threshing Coffee Export/Import Coffee Warehousing Roaster Sales Roaster Financing Coffee Distribution Coffee Quality

Cima Coffee Roasters

Responsibilities:

Roasting Cafés Coffee Store Management Coffee Roasting Facilities Consumer Retail Sales Supermarket & Restaurant Wholesale Sales Coffee Quality COMING SOON! ETHICAL BEHAVIOR • OUTSTANDING EXECUTION © Logistics LatinAmerica, S.A.S.


Third Wave of Coffee Increasing Demand for Specialty Coffee

Specialty coffee sales account for 16% of the market and are increasing 20 percent per year Source: Speciality Coffee Retailer, http://www.specialty-coffee.com/

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Coffee Producers in Latin America

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Fundamental Coffee Value Chain Grow and Harvest

Quality

Depulp, Wash & Dry

Quality

Quality

Mill and Sack

Quality

Export and Warehouse

Quality

Quality

Roast and Package

Quality

Quality

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Sell and Distribute

Quality


A Conversation with a Colombian Coffee Farmer Video

http://www.youtube.com/user/TierraCafetera ETHICAL BEHAVIOR • OUTSTANDING EXECUTION © Logistics LatinAmerica, S.A.S.


What is the Key Challenge for the Professional & Home Roaster? Latin America produces

~9,000,000 lots of coffee each year

Of these, about 10%, or ~900,000 are Specialty Lots Of these, only ~900 are available for purchase each year on the spot market ETHICAL BEHAVIOR • OUTSTANDING EXECUTION © Logistics LatinAmerica, S.A.S.


CLA Coffee Sourcing 80+ Farm A … …

1-325 Sacks

… …

Professional Roasters / Specialty Supermarkets

1 lbs

80+ Farm Z

Home Roasters 1-20 lb Pkgs

Purchase Mill and Ship Ship Package & Distribute Parchment Package

Latin America

Bag

Customer

International Destinations

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Home Roaster Strategy High-Value Coffees

High-End Coffees

Home Roasting Equipment

80+ Low-Cost Coffees, etc.

Ebay Auctions

90+, Geishas, Auction Winners, etc.

USA Warehouse /Fulfillment Center

Drum & Air Roasters, Books, Brewers, Grinders, etc.

http://tinyurl.com/ebaycla

Internet Web Store

http://coffeelatinamerica.com/

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Web Site during Initial Operations

http://coffeelatinamerica.com/ ETHICAL BEHAVIOR • OUTSTANDING EXECUTION © Logistics LatinAmerica, S.A.S.


CLA Customer Feedback • • • • • • • • • •

Thanks again for a great service from start to finish, and i will definitely buy from you again and recommend to others. – David D. Excellent price, fast delivery, fantastic coffee. My new go-to source! Thanks. - Paula D. Cup of Excellence!!! Great coffee, fast shipping. Highly recommended. - Jun C. Thank you very much exactly as you said it would be A++++++++++++++++++++++++ Edward M. Smooth Doesn't Begin To Describe It...Really Fast Shipping...Thank You So Much Tamera P. GEISHA, GEISHA, GEISHA, WOW, Great coffee fast shipping, exceptional cup. Tammy J. This is great coffee—thanks so much. Fast service. A+++ - Arnold R. Can't get enough of the Santa Teresa Geisha it is incredible, has to be one of the best coffee's going around right now. – Nolan H. This is the first time I have tasted REAL floral notes in coffee. It changes my perspective on how coffee should taste. – Chong C. I just wanna tell you how absolutely impressed I am with your coffee. You have a customer for life.– John B.

Source: http://tinyurl.com/feedbackcla ETHICAL BEHAVIOR • OUTSTANDING EXECUTION © Logistics LatinAmerica, S.A.S.


Professional Roaster Customer Offering List

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4th Wave 3rd Wave

1st Wave

Virtual DirecTradeTM

VDT: Directly Connecting All Producers with Artisanal Roasters All Roasters Specialty Coffee Specialty Coffee Single Origin Microlots Single Origin Objective Scoring Coffee Elitism Level Playing Field Direct-Trade Sourcing 2nd Wave Demand Pull Sourcing Limited Variety 100x More Varieties Nationwide Low Penetration Incentivized Quality Chains High Priced Best-Value Pricing

Mainstream Quasi-Specialty Suppliers Espresso Drinks Commodity Regional Pre-ground Origins Canned Improved Low Flavor Flavor Low Priced Mid Priced

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Virtual DirecTradeTM Producers (Millions)

Coffee Coffee MicroCoffee MicroCoffee Lot MicroLot MicroLot Lot

Relationship-Enabled Apps

Value-Added Services Enabling Infrastructure

Future Lots In-Production Lots Sequestered Lots

Professional Roasters (10K´s)

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Acquiring Coffee Directly from the Farmer

http://conexioncafetera.com/ ETHICAL BEHAVIOR • OUTSTANDING EXECUTION © Logistics LatinAmerica, S.A.S.


Coffee Industry Virtual DirecTrade™ Advantages • Producer – Much larger roaster customer pools drives higher demand for quality – Higher premiums paid to farmer to incentivize quality – Investments in certification, training and coffee quality

• Consumer – Disintermediation and shipping optimization drives lower end-to-end prices for buyer – 100X more varieties of higher-quality coffees with demand-pull sourcing – Customization of milling, packaging and shipping options – Avoids risks of operating in origin ETHICAL BEHAVIOR • OUTSTANDING EXECUTION © Logistics LatinAmerica, S.A.S.


Coffee Farms Real Estate AgriInvestment: Tierra Cafetera

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Investment Across the Entire Value Chain “From Seed to Cup” Tierra Cafetera

Coffee LatinAmerica

Responsibilities:

Responsibilities:

Property Ownership Property Management Producer Micro-financing Coffee Yield Coffee Processing Coffee Drying Coffee Quality

Coffee Threshing Coffee Export/Import Coffee Warehousing Roaster Sales Roaster Financing Coffee Distribution Coffee Quality

Cima Coffee Roasters

Responsibilities:

Roasting Cafés Coffee Store Management Coffee Roasting Facilities Consumer Retail Sales Supermarket & Restaurant Wholesale Sales Coffee Quality COMING SOON! ETHICAL BEHAVIOR • OUTSTANDING EXECUTION © Logistics LatinAmerica, S.A.S.


Tierra Cafetera Investment Video

http://www.youtube.com/user/TierraCafetera ETHICAL BEHAVIOR • OUTSTANDING EXECUTION © Logistics LatinAmerica, S.A.S.


Coffee Farms in Colombia

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Colombia Coffee Harvests

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0.5 Acres

0.5 Acres

0.5 Acres

0.5 Acres

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Geographic Diversity of Farms = Lower Risk

Department of Antioquia

Medellín

Antioquia Colombia

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Typical 20 Acre Coffee Farm 20 Year Financial Forecast • •

60% Mean Increase in Yield 30% Mean Increase in Quality Premium

• •

30% Mean Increase in Yield 50% Mean Increase in Quality Premium

20% Mean Increase in Yield 30% Mean Increase in Quality Premium

• •

10% Mean Increase in Yield 25% Mean Increase in Quality Premium

Years 1-5 Years 6-10 Years 11-15 Years 16-20 Without CLA With CLA Without CLA With CLA Without CLA With CLA Without CLA With CLA Total Revenues 59527 127685 62503 242601 65628 376032 68910 507643 Operating Expense 50598 72498 53128 101497 55784 131946 58573 171530 Gross Margin 15% 43% 15% 58% 15% 65% 15% 66% Income before Taxes 8929 55187 9375 141104 9844 244086 10336 336113 Income Tax Expense 2947 18212 3094 46564 3249 80548 3411 110917 Net Income 5982 36975 6282 94540 6596 163538 6925 225196

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Typical 20 Acre Coffee Farm 20 Year Financial Forecast Investor Profit Share % Farmer Profit Share %

Annual Net Income ($USD) Initial Investment ($USD) Investor Profit Share ($USD) Property Sale Proceeds Total Annual Return Total 20 Year IRR %

80% 20% Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Year 18 Year 19 Year 20 36975 38085 39227 40404 41616 94540 103994 114393 125833 138416 163538 171714 180300 189315 198781 225196 236456 248278 260692 273727 -400000 29580 30468 31382 32323 33293 75632 83195 91515 100666 110733 130830 137372 144240 151452 159025 180157 189165 198623 208554 218982 -370420 30468 19%

Investor Profit Share % Farmer Profit Share %

Annual Net Income ($USD) Initial Investment ($USD) Investor Profit Share ($USD) Property Sale Proceeds Total Annual Return Total 20 Year IRR %

31382 32323 33293 75632 83195 91515 100666 110733 130830 137372 144240 151452 159025 180157 189165 198623 208554 218982

80% 20% Year 1 Year 2 Year 3 Year 4 Year 5 36975 38085 39227 40404 41616 -400000 29580 30468 31382 32323 33293 -370420 30468

… … … …

31382 32323 33293

Year 16 Year 17 Year 18 Year 19 Year 20 TOTAL 225196 236456 248278 260692 273727 2921480 -400000 180157 189165 198623 208554 218982 2337184 180157 189165 198623 208554 218982

19%

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1937184


Tierra Cafetera Investment • Non-accredited investors okay • Total shares offered: (560) $10K USD 0.5 acre CLA Real Estate investment lots – Total offering proceeds: $5.6M USD for 280 acres total acreage on up to 15 farms

• Minimum investment level: (1) Block = $10K USD • All investors will receive 80% of gross profits of coffee operations as quarterly profit-sharing distributions • All investors will receive a share of exit proceeds proportional to their ownership ETHICAL BEHAVIOR • OUTSTANDING EXECUTION © Logistics LatinAmerica, S.A.S.


Coffee LatinAmerica Investment

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Investment Across the Entire Value Chain “From Seed to Cup” Tierra Cafetera

Coffee LatinAmerica

Responsibilities:

Responsibilities:

Property Ownership Property Management Producer Micro-financing Coffee Yield Coffee Processing Coffee Drying Coffee Quality

Coffee Threshing Coffee Export/Import Coffee Warehousing Roaster Sales Roaster Financing Coffee Distribution Coffee Quality

Cima Coffee Roasters

Responsibilities:

Roasting Cafés Coffee Store Management Coffee Roasting Facilities Consumer Retail Sales Supermarket & Restaurant Wholesale Sales Coffee Quality COMING SOON! ETHICAL BEHAVIOR • OUTSTANDING EXECUTION © Logistics LatinAmerica, S.A.S.


CLA 5-Year Financial Forecast Year 1 20´ Trailers of Coffee Shipped Professional Roaster Revenues (USD $) Home Roaster Revenues (USD $) Roasted Coffee Revenues (USD $) Advertising / Miscellaneous Revenues (USD $) TOTAL REVENUES

13 1.447.712 85.313 1.533.024

Total CLA Exit Investor Payout (Sale, IPO, etc.) (USD $) Total Investor Cash Flows (USD $) Total Annual Investor Dividends (USD $) Total Annual Investor Cash Flow (USD $) Total Investor Quarterly Dividend Payout % on Revenues Total External Investor Equity % at Exit Event Total Investor IRR %

Year 2

Year 3

Year 4

Year 5

31 2.895.423 255.938 750.000 35.000 3.936.361

76 5.790.847 639.844 3.375.000 105.000 9.910.690

140 10.133.982 1.279.688 6.750.000 315.000 18.478.669

243 12.667.477 1.919.531 16.875.000 630.000 32.092.008

- 5.623.000 - 4.677.000 44.151 113.367 - 5.578.849 - 4.563.633 6% 48% 54%

285.428 285.428

532.186 532.186

46.212.492 924.250 47.136.742

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Coffee LatinAmerica (CLA) Investment • Accredited Investors Only • Total shares offered: (1030) $10K USD preferredshare blocks (4660 shares each) in Coffee LatinAmerica Investment – Each block represents 0.047% ownership in company – Total offering proceeds: $10.3M USD for ~48% of the company

• Minimum investment level: (2) Blocks = $20K USD • All investors will receive 6% of gross revenues of coffee operations as quarterly profit-sharing distributions • All investors will receive a share of exit proceeds (IPO or sale) proportional to their ownership ETHICAL BEHAVIOR • OUTSTANDING EXECUTION © Logistics LatinAmerica, S.A.S.


Tierra Cafetera Coffee Farm Tour

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Questions? • James Cummiskey – Medellín, Colombia – Office: (310) 855-3755 (U.S.A.) – Mobile: (011 57) 313-793-5672 (Colombia) – jamesc@logisticslatinamerica.com – http://logisticslatinamerica.com

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LLA Coffee Presentation  

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