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02-453-001
March, 2001
LogiTech:
“Closing Transportation Gaps” 1
Introduction
It was a sunny and beautiful day in Buenos Aires and Mr. Ben Camelo enjoyed a good cup of coffee
while watching the Avenida 9 de Julio from his office’s window. Mr. Camelo, a very successful young
entrepreneur, was puzzled wondering whether or not to pursue a new investment opportunity. The
investment (Logitech) involved the development a new and innovative system in the Transportation and
Logistics industry (T&L) that would help companies and governments in Brazil and Argentina to keep a
better record of their assets, therefore, reducing costs and increasing net income.
The challenge for Mr. Camelo was to assess the correct value of this project, an assessment that is not
easy, especially in Emerging Markets. Mr. Camelo had to evaluate very carefully the risks not only
involved in the project, but also the risks involved in investing in these two countries.
Background
The Opportunity
More than a decade ago South America started down the path of privatization, globalization and
deregulation process after half a century of state-monopolized industries. Accompanying this change
process, a higher quality service offering is becoming a regular requirement. On the one hand, clients are
beginning to understand their role as customers, having the opportunity to rationally choose products and
services on their value-added and price-performance, as well as becoming more and more demanding. On
the other hand, South American companies are realizing that they need to develop innovative practices to
sustain the life of the businesses and protect against competitive threats. In addition, today’s highly
segmented marketplace proposes no dominant force to help companies overcome this trend.
Mr. Camelo believes that the T&L industry represents about US$ 85 billions in yearly revenues in Brazil
and Argentina, the two countries that this opportunity would initially targets. Moreover, several economic
trends have favored its growth in the past, but the coincidence of three contextual factors is reshaping
today’s needs of the T&L players in South America.
1
The students Federico Canepa, Gabriel Michalup, Julio Cubillan, and Ricardo Fischmann have prepared this case and analysis
as the final project for the Emerging Markets class at the Fuqua School of Business at Duke University.
This case was prepared as the basis for class discussion and analysis rather than to illustrate either effective or ineffective
handling of a business situation.
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First, the pervasiveness of globalization, privatization and especially the explosive growth of South
America have accelerated the need for profound productivity increases across the supply chain. It is
estimated that from 20% to 40% of the T&L costs are due to inefficiencies, friction and filtration (in the
U.S. the upper limit is below 20%).
Second, transportation companies have to address high crime rates and unethical practices across the
supply chain. These factors are critical in South American countries where loss attributed to stolen
vehicles and cargo is proportionally important. Through workshops and interviews conducted by Mr.
Camelo’s analysts, several companies have the need of a reliable security service to reduce the incidence
of lost resources and control the behavior of its drivers. Furthermore, insurance firms also need a tool to
reduce the rate of stolen vehicles and cargo that is economically viable.
Finally, the new economy represents a shakeout in the industry’s traditional operating paradigm. While
growth of e-Commerce is exponential, the logistical difficulties in handling physical goods pose a major
threat to its development and growth. As trading evolves, the most dramatic and immediate impact of eCommerce will be felt on the distribution side of the supply chain as companies seek to differentiate
through innovative services. The new economy means increased transportation complexity and it will
drive a structural change in supply chains. Higher complexity translates into higher control difficulties,
higher coordination problems, and increased less than truckload shipments. In this regard, there is a need
for knowledge and information tool capable of handling that increased complexity.
Consequently, there is an opportunity to create value by providing the needed information, intelligence,
and knowledge services to tackle all inefficiencies, filtrations, and losses across the entire Supply Chain.
Mr. Camelo believes that his proposal would perfectly fulfill market needs.
Brazil2
Economy
Brazil is the 5th largest country in the world and the most populous country (160 million) in South
America. Brazil is also the 9th largest economy in the world, possessing large and well-developed
agricultural, mining, manufacturing, and service sectors. However, since the early 1980s, and after more
than two decades of continued growth and development, the economy has experienced substantial
difficulties, including high inflation, economic stagnation, and influence of radical politicians (Exhibit 2).
President Cardoso, first elected in 1994, masterminded the stabilization program known as the Real Plan,
sought to break inflationary expectations by pegging the real to the US dollar. Inflation was brought down
to single digit annual figures, but not fast enough to avoid substantial real exchange rate appreciation. In
January 1999, an intense pressure on the Brazilian currency forced the Central Bank to float the Real
according to market forces. Against widespread skepticism, the economy withstood the shock of the
maxi-devaluation much better than might have been expected.
The economic recovery has been remarkable. With interest rates continuing to fall and confidence rising,
the economy seems set to achieve the government's 4% growth target for 2000. Inflation remains
contained while fiscal discipline has become the norm. Some sectors of the government were even
expecting that some relaxation of monetary and fiscal policies and sharper decreases in interest rates
could further boost economic development.
2
Sources: EIU – Economist Intelligence Unit; www.latin-focus.com
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Reforms
The growth and development experienced this last decade and the unexpected withstanding to the maxidevaluation in 1999 are a result of several reforms that Brazil has been undertaking to become a more
open, efficient, and competitive economy. Several economic and financial reforms were passed in
Congress, and the public-sector deficit was already substantially reduced.
There are still some serious issues to be addressed. Police forces are inefficient, corrupted, and
disorganized. The judiciary system is extremely slow, bureaucrat, and inefficient. Impunity keeps
criminal behavior (ranging from tax evasion and copyright violations to robbery and corruption) in levels
significantly higher than eventually desired. For Brazil to continue a successful trajectory, there are still
some important reforms to be made. Although Cardoso clearly holds an overwhelming majority of
congressional seats, it's often been difficult for him to win sufficient congressional support for his
initiatives.
Argentina3
Economy
Argentina is the 2nd largest country in Latin America and benefits from rich natural resources, a highly
literate population, an export-oriented agricultural sector, and a diversified industrial base. Until the 1970s
when Brazil had attained extraordinary growth, Argentina was the strongest economy in South America.
In 1983 after nine years of military rule, Argentina restored democracy. However, the economic situation
was critical mainly because of huge external debts, hyperinflation, and decreasing output.
After decades of chronic high inflation and flat growth, Argentina began a remarkable economic
restructuring program under the Presidency of Carlos Menem (1991-99). The Convertibility Law, passed
in 1991, pegged the peso to the US dollar. As a result, inflation plummeted, the country's finances quickly
stabilized, and growth surged in the early 1990s, helped by reforms that privatized most state companies
and freed trade and investment. Despite the 1995 Mexican peso crisis that produced capital flight, the loss
of banking system deposits, and a severe, but short-lived, recession, real GDP growth recovered strongly,
reaching 8% in 1997.
Recent problems
In 1999, however, international financial turmoil caused by Russia's problems and increasing investor
anxiety over Brazil currency issues produced the highest domestic interest rates in more than three years,
sharply slowing economic growth. President Fernando De La Rúa, who took office in December 1999,
sponsored tax increases and spending cuts to reduce the deficit. Growth in 2000 remained a disappointing
0.8%, as both domestic and foreign investors remained skeptical of the government's ability to pay debts
and maintain its fixed exchange rate with the US dollar. In addition, Brazilian devaluation has affected
Argentinean attractiveness for further investments (please refer to Exhibit 1 for country macroeconomic
information)
The government ability to boost the economy after a deep recession in 1999 will be key for its success in
the near future. The Convertibility Plan of 1991 remains central to policy, backed by the money supply
3
Sources: EIU – Economist Intelligence Unit; www.latin-focus.com
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with foreign exchange reserves. However, the peg has its weaknesses and is subject of much criticism,
for the country is vulnerable to external shocks, and is unable to use interest rate adjustments as a tool for
managing the economy.
Another major concern is whether De La Rúa will be able to lead a major restructuring needed in the
country’s government entities. Current administration opposition is weak, although that can easily change
if the economic situation does not improve, for new presidential elections are planned for 2001. So far,
economic prospects for Argentina are good, since several important reforms are expected to take place
and increase the country’s ability to overcome three years of minimal growth.
Transportation and Logistics Industry
Industry Background
The T&L is essential to the development of South American economies for its profound relation with
other sectors of the economy. Since the transportation industry can be conceived as an extension of the
production chain, moving manufactured products, raw materials, and people from one place to another, its
impact in the economy as a whole is dramatic. Productive processes or distribution models in the “Just in
Time” model, quality of service rendered, and Vendor Managed Inventory (VMI), are examples of
activities that push suppliers and buyers to enhance their transportation processes and collaboration. Trade
agreements currently held in South America, such as Mercosur, add more complexity to the supply chain
network, and force companies to open their markets beyond country boundaries and, through multi-mode
transportation services, to the world.
Under the ever-increasing integration of the various components of the supply chain, the ability to gather
and react to real-time information about the status of the fleet and cargo represents higher value due to
growing competitive pressures. Timely information about the status of the supply chain and the products
is therefore becoming as valuable as the commercial assets. “As customers’ expectations rise, shippers are
requiring carriers to supply up-to-date information via the Net. Even companies that ship locally or
overnight – and don’t normally worry about tracking – plan to take advantage of the Internet to reduce
customer service calls, monitor carriers, announce delays, and verify delivery for swifter payment.”4 The
value of such information-based tools is easily derived from the tangible impact in market share lost,
increased service revenues, or broken supply chains. This financial value already exists and is available to
be shared with the solution provider.
Industry overall profitability in the region is lower than 5%. Increased costs (such as privatized roads,
increased taxes) and reduced prices due to stronger competition (lower barriers to entry for international
carriers) decreased the overall profitability of the trucking industry. However, the industry has a vast
potential for enhancement. A consultant firm’s industry survey indicates that average use of a fleet is 66%
and back haul potential improvement is 43% (taken from average percentage of empty return trips).
Technology could dramatically improve efficiency and investment return of T&L industry. The advent of
open protocols for wireless communications will soon allow most vehicles of using several carriers to
either receive or transmit voice and data, such as vehicle location and alarms, upon request or when selftriggered by an event. Practical applications to support this need will be key for the South American
transportation industry to using real time information about the operations to optimize resource
4
Bell, Steven. Logistics On-Line. Forrester Research, April 1998. Page 4.
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utilization, reduce uncertainty, and thus become more efficient to compete and surpass world-class
requirements.
However, South American T&L industry does not take advantage of technology to improve operations. A
recent survey by a consulting firm, showed that only 35% of the industry uses some kind of fleet
management system and less than 20% uses Internet as part of their operations. In addition, current
services offered to the industry are mainly focused on security, and do not offer an integrated solution that
specifically address the broader current and future needs.
Moreover, current industry trends reveal the potential of technology to improve the industry. An increased
consolidation of the industry in the next years is expected and would give companies the economy of
scale to justify their investment in technology. The industry is currently highly segmented with 50% of
the vehicles as part of a fleet of two or less vehicles. Moreover, Mercosur would dramatically increase
trade between countries, increasing the average mileage of cargo movement, increasing the complexity of
the supply chain (multimode transportation), and tending toward consolidating the industry.
Target Customers
Four clearly different segments compose the industry: truckload industry, service industry, public
transportation industry and taxi industry (Exhibit 3). A critical issue for all market segments in Argentina
and Brazil is security. Fleet owners suffer severe losses from theft that range from 2% to 4%. In case of
truckload industry, cargo is always lost, and many times the vehicle is lost as well. Moreover, the
downstream supply chain is halt when a delivery is not fulfilled, generating further intangible costs.
Operations optimization is not currently viewed as important as security is. However, once security needs
are covered, the next logical step in the service value chain for the industry is the implementation of
solutions to optimize their operations due to the high potential for cost improvement. A currently low
penetration of technology will demand a need of educating T&L management to use higher value services
such as Fleet Management and Transportation Web Portal. The natural service offering would range from
low value services such as vehicle location to higher value services such as Internet portals.
In addition, customers do not have access to an integrated service offering. Different software vendors
provide non-integrated software solutions for fleet maintenance, cargo optimization, fleet optimization,
and fleet cost control. An integrated solution is believed to be the key to capture the T&L market.
Moreover, fleet owners do not want to invest large sums of money in expensive operation centers
equipped with costly hardware and software. Instead, they prefer to subscribe to a monthly service,
paying a per vehicle monthly fee. This way, transportation companies and fleet owners will be able to
reduce their fixed costs, by replacing them with a variable cost.
Competition Dynamics
Most companies that concentrate their service offering in South America provide security services. A
smaller number of companies offer other services but not in an integrated fashion. Mr. Camelo believes
that no company is currently able to offer a service as that of Logitech or is able to deploy it in the short
term. Competitor intelligence concluded that:
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Route Certification and Fleet Management
About 20 companies operate in South America, offering services related to route certification and fleet
management. Most of the companies provide security services. The services offered range from triggering
an alarm with a panic button to turning on lights or cutting the engine, including the recovery of robbed
vehicles. The latter is offered by a small number of companies. Several companies offer maintenance
services but only one (Qualcomm) provides an integrated fleet maintenance solution. Qualcomm develops
products and services for the transportation market (satellite communications, messaging, and fleet
maintenance) and has a strong brand in the trucking industry and in satellite communications. However, a
limited number of companies operate via Internet, where clients could have easier and faster access to
vehicle location and other variables being monitored, or have a messaging system.
Transportation Web Portal
Internet penetration in Latin America is reminiscent of the U.S. market four or five years ago. There are
few specific sites dedicated to the transportation industry, and value-added services over the Web are
practically nonexistent. Based on the product definition for the transportation Web Portal, four main
competitive segments can be identified, each one depending on cultural and geographic factors that
uniquely determine their competitive landscape.




Industry-Specific Information Services: Many sites in the U.S. offer diverse information
related to legislation, events, directories, and other subjects trying to create an online community
for the transportation industry. However, there are a few sites with content in Spanish or
Portuguese, most published by industry specific magazines. The competitive analysis did not
detect major players in South America, where government-owned sites are still the main
reference for transportation information. Building an online transport community to support the
market penetration of Logitech business concept would be an advantage.
Route-specific Information: This segment basically demands precise geographic coverage and
information processing capabilities. Only a very small group of new ventures has actually
implemented a complete route specific information service via the Internet in the U.S., and there
are some European initiatives primarily still in their development stages.
Transportation Exchange: Over the past decade, some companies tried to become an exchange
center for cargo transportation. Since telephone was their main method of communication it
became very difficult to generate the necessary volume of transactions to take advantage of back
hauling opportunities, so their role remained as a mere intermediary for one-way trips. Today,
companies like Logisat or Siteweb are trying to take these services onto the Internet.
E-Commerce: Very few U.S. sites sell specific products for the trucking industry, and most of
those offer just a limited array of products. Although South America forecasts show potential and
promising online Web sales of retail products, no transportation site with online sales capabilities
focusing the trucking industry in the region was detected.
The Company: LogiTech
What is LogiTech?
The company’s core business is delivery of value to the T&L Industry in Latin America through
information analysis, intelligence and knowledge surrounding a given vehicle/fleet, its cargo and its
environment. LogiTech will offer an integrated service to land-based transportation fleets. Brazil and
Argentina are the first target markets, although this idea can be easily replicable to other markets
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worldwide. LogiTech target is the T&L Industry, which is essential to the development of Latin
America’s economy because of its profound relation with other sectors of the economy.
LogiTech proposed services are:
 Route Certification: On-line tracking and tracing of vehicle routes and on-line notification of
constraints that have been violated (i.e. speed, boundaries, and temperature).
 Fleet Management: Providing tools and services over the Internet for fleet planning, execution,
analysis and cost control.
 Transportation Web Portal: On-line logistics marketplace that includes information services,
supply chain tools, and related products/services for the transport industry.
 Future products: envisioned services include warehousing and services exchange, and B2B
Freight Payment.
The key strength of LogiTech proposal is its capacity to deliver advanced technology with integrated
functionality. Another advantage over competitors is the assurance of access to an improved technology
with no upfront investment required. Logitech services would be acquired with only a monthly fee,
without any additional expense. These competitive advantages differentiate it from other players. Once
this venture guarantees strong customer reliability, a rapid market penetration will ensue.
Extensive market analysis has lead to the identification of two keys to this venture’s success. First,
extremely short time to market is essential. As is common to any industry, being first to market
commands a huge premium, but this is increasingly crucial considering the rapid evolution of dot.com
offerings and development of fleet efficiency technology. Mr. Camelo believes he is ready to deploy the
business, however some hardware and software development are the critical path for the go-alive and,
therefore, any delay would impact the project roll out.
Logitech’s T&L solution is tailored to different customers’ needs. Industry basic segmentation classifies
customers in four categories: truckload industry (further divided in long haul and short haul), service
industry (mostly short haul), public transportation industry (further divided in short and long distance)
and taxi industry (Exhibit 3). A key driver for the type of service a customer needs and its implied cost is
the frequency they need to update data.
Logitech expects to address this segmentation with the services Event Driven (ED), Low Frequency (LF),
and High Frequency (HF). Even Driven refers to a type of service in which information is trigger from the
vehicle only in case of an event (vehicle stolen, vehicle damage or broken). Low Frequency is adequate
for fleets that serve mainly long distances, as the dynamic of supply chain is lower (less number of stops).
Finally, High Frequency is an almost on-line update of vehicle data, used for highly dynamic supply
chains such as deliveries in a city (please see Exhibit 4 for segments needs).
Company Structure
Logitech will have locations in three different countries. The main office would be located in Miami,
Florida, where all the service’s system will be stored. By having this main office, Mr. Camelo would
centralize operations forecasting future growth in other Latin American countries and worldwide. Also,
due to the crime rate in Latin America, Logitech would mitigate part of its risk by storing all the data and
software equipment in a less risky country. Besides the main office, Logitech would have office in each
country it plans to have operations, starting with Brazil and afterwards Argentina. These regional offices
would be mainly in charge of the sales force and the customer services. Each of these offices would
growth depending on it specific needs.
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Logitech will launch first in Brazil, and six month later open the office in Argentina. The reason behind
this decision is the limited resources available after launching the project in Brazil. Mr. Camelo decided
to go first into the Brazil market because it has bigger economic size and higher growth potential.
If the project were successful in Brazil and Argentina, Logitech would expand its operation to other
countries. Mr. Camelo thought to first try in other important Latin-American countries such as Mexico,
Chile, Venezuela, Colombia and Peru. After getting reasonable market position and stable revenue
income, he will expand to other countries not necessarily restricted to Latin America.
Financial Projections
After a deep analysis, Mr. Camelo came out with the key variables that affect the pro-forma. They are
divided in four big groups: Revenues, Variable Costs, Fixed Costs, and Investments. Besides the main
items in the pro-forma, are also worth considering tax expenses, and the variables that may affect some
costs.
Business Forecast
Several issues regarding the business forecast for Logitech concerned Mr. Camelo, as some of the
assumptions implied a considerable variability that would pose additional risk to the project. Mr.
Camelo’s team considered appropriate to resemble technology penetration to that of the cellular phone
when launched in the mid eighties. Deviations from that value implied strong cash flow fluctuations.
Others variables such as the growth of the total available market, penetration of higher value services, and
target market share also fluctuate the bottom line (Exhibit 5 for price assumptions, Exhibit 6 for other
assumptions).
Among costs projections, fixed cost were not a concern. They were comparatively too small. Variable
costs, however, were source of important fluctuations. The cost of the vehicle location device,
communication costs, and installation costs were calculated as precisely as possible for a business that
had not yet been rolled out. Please refer to the evolution of these costs in Exhibits 7 and 8.
Investment and Amortization
Logitech requires strong initial investment in technology. This technology would be basically stored in
the Miami’s office. The highest investment costs would be in implementation. More detail about
investment in each country can be found in Exhibit 9.
Taxes
Logitech is facing three different tax structures in each of the country they are investing in. The
differences arise in tax rate and type of taxes. Argentina and Brazil companies have to pay both, Value
Added tax and Sales tax. The rates for Value Added Tax are 21% and 16% for Argentina and Brazil, and
Sale tax of 4% and 5% respectively. The income tax rate is set on average at 35% to all the three
countries.
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Financing Decisions
Mr. Camelo divided his financial decisions in two parts: the financial instruments available to him, and
the equity holders of the company. These two options are extremely related, because it is a big trade off
on how much control and risk he is willing to take by himself, and how to broad the financial instruments
available to him.
Initial Financing Needs
The first year investment is estimated to be US$22 million followed the next years by US$ 7.9 and US$
2.4. The pro forma estimates that after the second year, the cash flow generated would be enough to cover
the Capital Expenditures of year 2 and so on. The financing could be divided in two terms, the initial for
US$ 22 million and a later one for US$ 8 million. Using these two financial rounds would allow them to
reduce the risk exposure by letting the debt holders analyze the results of the venture after the first year of
operation and at the same time reduce the interest payments.
Capital Structure
The proposed transaction is set to have as Mr. Camelo, the main developer of the business. Because of not
having all the available funds to put in Logitech, he is searching for other sources of Capital. So far, his
personal credit rating doesn’t allow financing the entire project with personal loans. Also, because
LogiTech is a start up company, the access to financial sources is also somehow restricted.
LogiTech is considering different financial alternatives, and here is the list of the current financial
options:
Venture Capital and Private Equity in Emerging Markets5
The practice of Venture Capital/Private Equity in emerging has grown considerable in the last decade.
Latin American countries have had also this flow of funds and was estimated that between 1994 and 1995
the funds raised $1.4 billion. The single biggest investor in this poll has come from the US.
The implementation of Private Equity in emerging countries differ some how from the practices used in
Developed countries. The main issues that distinguish Venture Capital funds in Latin America are:
Fundraising: In the case of Latin America, Venture Capitalist funds have implemented the same fund
structure of having a Limited Partner (provider of the funds) and a General Partner (in charge of investing
the funds in companies). The general partners in Latin American countries tend to work similar to the US
Venture Capital, with the exception of one fund6. In the case of Limited Partners, the funds have being
coming, besides the same investors for US Venture Capitals, from Pension Funds, Corporations,
Insurance Companies, high net worth individuals, US foreign aid organizations like USAID (U.S. Agency
or International Development), quasi-governmental corporations like OPIC (Overseas Private Investment
Corporation), and from multilateral financial institutions like IFC (International Finance Corporation).
Most of the information of this section is from: Josh Lerner “Venture Capital Private Equity A Case Book” published by John Wiley & Sons,
Inc. 2000.
6
Lorenzo Weissman “The Advent of Private Equity in Latin America, “The Columbia Journal of World Business 31” spring 1996.
5
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Investing: In this case, Venture Capital funds, as opposite from the US, tends to target established firms
in mature industries. Among the most typical investment categories are privatizations, corporate
restructurings, strategic alliances, and infrastructure funds. In the sense of identifying potential deals, the
Latin America funds follow a similar structure applied by the US funds to determine investing
opportunities. The primarily financial vehicle in emerging countries used by Venture Capital is common
stocks, but the shareholders agreements tend to be similar to those commonly used in the US. The main
difference between US and Latin America funds arise in valuating companies, mainly due to lack of
information or higher risk levels.
Exiting: Venture Capitals have problems in exiting from ventures, because of the lack of a “hot market”
or constant possibility of an Initial Public Offerings (IPO). The most popular exit way is to sell the
portfolio of firms to strategic investors.
Venture Capital and Private Equity Financing
LogiTech has had trouble to be consider by Venture Capital firms in both, Argentina and Brazil, mainly
because the project was in early stages and in an untraditional industry. Also, LogiTech had contacted
different Investment Banking Venture Funds and received similar answers. He needs the funds to start his
business and Venture Capital was his best alternative, otherwise he should go to financial institution and
get the funds but at higher financial costs and at the same time carrying higher risk. Another reason
Venture Capital funds were reluctant to invest was for the fact of his lack of experience in this specific
business.
On the other hand, Mr. Camelo liked the idea of having a Venture Capital providing the funds, dismissing
the risk of not getting the funds through a financial institution, the collateral he might had to put in, and
interest payments since getting the funds. Mr. Camelo knows that to close a deal with any Venture capital,
the fund should be able to acquire more than 90% of the company and they will add a new CEO to run
operations. Mr. Camelo would lose control of LogiTech, but that was a trade off he was willing to accept
in order to go on with his business.
Local Currency
Mr. Camelo was also considering other financial alternatives with local financial institutions. These
alternatives were more costly than Venture Capital because of Logitech risk rating, and the collateral
needed to back up any credit. The options considered include short-term and long-term debt, financial
leasing, and syndicated loans.
Short-term debt: This is one of the most feasible solutions. In general, Latin American banks credit
portfolios consists mainly on promissory notes. The interest rates are estimated to be the average lending
rate plus 150 bps to 300 bps, depending of the risk. For companies, financing working capital is easier
than big projects. Also, for local banks, the risks of promissory notes are lower than other log-term
investments, once it is easier to pick up the collateral in case of default. And because is a short loan (on
average for 90 days extendable up to 3 years) the risk involved is lower. These local economies tend to
have very deep economic cycles (either recessions or growing). One difficultness of this product is the
stream of monthly interest payments and quarterly capital amortization.
Long-term debt: This is a term structure not very used by local banks due to the commitment of funds
for long periods of time. Banks consider this product riskier than promissory note basically for its
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duration. For the clients, the collateral should be higher in proportion and tend to be mortgages or PPE
(Property Plant and Equipment). Also, it is very difficult to get long-term finance to star up’s company
because the lack of proven track record. The banks’ provisions to the regulatory agencies tend to be
higher for financing these types of companies. Usually this product has the option of up to 6 month of
grace period of none payments and a spread of up to 150 bps over the average lending interest rate. On
the other side banks charge a disbursement fee between 1% and 2.5% of total funds.
Financial Leasing: This is a more feasible option. Even tough it represents a long-term investment, the
banks tend to have two collateral for this type of loan: the financed asset and any other asset. The reason
is that the bank does not control the financed asset, which depreciates over time reducing its market value.
Because of a better collateral and because is attached to a specific asset rather to a company, this type of
long-term loans are more feasible to companies, and banks can control if the loan is used to purchase the
asset rather than diverted to other uses. On the other hand, as in the long-term debt case, there is bank
reluctance to finance startup companies. Lending conditions are similar to long-term debt but with the
addition of asset insurance, estimated between 2% to 5% of asset value.
Syndicated Loan: This is a type of financial instrument used either to finance a big project, or by small
banks that want to finance projects like this, but don’t have enough equity to lend all the money by
themselves. But this financial instrument is mainly for long-term debt and the risk involved could be
greater than other types of debt for two reasons: the involvement of other banks in the operation, and the
seniority of debt for each. The cost for the client is similar to long-term debt but with an additional fee at
the disbursement between 1% and 2% to the leading bank for structuring the transaction payable.
Foreign Currency
Long-term debt: Many international banks have branches in foreign countries, including Latin America,
and they finance projects mainly in US dollars. Other opportunity to be considered is to get financed from
these institutions in foreign currency. The main differences between financing in local and foreign
currency are the hedge from dramatic changes in local interest rates, but increasing the risk of local
currency fluctuation. This type of financing runs again in the same problem of long-term finance
explained before. Interest rates tend to be pegged to the PRIME rate plus a spread ranging from 0 bps to
400 bps, depending on client and country risks.
Financial Leasing: This product features are a mix of long-term debt in foreign currency and financial
leasing in local currency, by allowing LogiTech to receive finance for machinery in dollar terms. The
terms are similar to foreign debt plus asset insurance.
Financial Partnership
After doing research of the feasibility of financial instruments, Mr. Camelo realizes the need of having a
partner with a proven record to provide access to different financial instruments. His main financial goal
was to secure Venture Capital resources for Logitech; but in case this alternative doesn’t work, he
realized the need of finding a partner to help Logitech have broader options of financial instruments,
lower financial risk, and lower loan’s collateral requirement.
Page 11 of 21
Fuqua School of Business
02-453-001
LogiTech
“Closing Transportation Gaps”
Looking Forward
As the dusk was setting on Buenos Aires, Camelo considered his options. Although his analysis of
LogiTech investment opportunity was very thorough, he was still unsure about some risks. What were all
political, financial and economic risks of doing business in Brazil and Argentina? Was there another way
to mitigate the project-specific risks? Were they any possible alliances to ensure the success of LogiTech?
Was the discount rate he was using the appropriate one? Should operations be deployed in one country
before another? Are there some real options that would add some value to the base case scenario
valuation? With these questions in mind, Mr. Camelo closed his office door. He would have to make a
decision by the end of that week.
Page 12 of 21
Fuqua School of Business
02-453-001
LogiTech
“Closing Transportation Gaps”
Exhibit 1
Argentina’s economics indicators (% unless otherwise indicated)
Real GDP growth
Industrial output growth
Unemployment rate (% of labor force)
Consumer price inflation Average
Average
Year end
Interest rate (av; %)
General government balance (% of GDP)
Merchandise exports fob ($ bn)
Merchandise imports fob ($ bn)
Current-account balance ($ bn)
% of GDP
Total foreign debt (Dec; $ bn)
Exchange rates (av)
Ps:$
Ps:€
Ps:BrR
1998(a)
3.9
2.9
12.9
1999(b)
-3.9
-4.5
14.5
2000(c)
3.5
2.5
13.8
2001(c)
4.1
2.5
12.4
0.9 -1.2(a)
0.7 -1.8(a)
10.6
12.1
-1.4
-2.4
26.4
23.6
29.4
24.2
-14.7
-12.4
-4.9
-4.4
138.9(b)
139.5
0.4
1.8
13.3
-1.3
25.6
26.5
-14.2
-4.8
149.5
1.5
1.8
9.2
-0.9
27.7
28.8
-13.6
-4.4
157.1
1.000
1.03
0.561
1.000
1.12
0.569
1.000
1.12
0.861
(a) Actual. (b) EIU forecasts. (c) EIU estimate.
Page 13 of 21
1.000
1.07
0.551
Fuqua School of Business
02-453-001
LogiTech
“Closing Transportation Gaps”
Exhibit 2
Brazil's economics indicators (% unless otherwise indicated)
Real GDP growth
Gross industrial output growth
Gross agricultural output growth
Gross fixed investment growth
Unemployment rate (% of labor force)
Consumer price inflation Average
Average
Year end
Interest rate/lending (av; %)
General government balance (% of GDP)
Merchandise exports fob ($ bn)
Merchandise imports fob ($ bn)
Current-account balance ($ bn)
% of GDP
Total foreign debt (Dec; $ bn)
Exchange rates (av)
R:$
R:€
1998(a)
-0.2
-3.7
0.0
2.5
7.6
1999(a)
0.8
-1.3
9.0
-1.0(c)
6.3
2000(b)
3.9
4.5
0.0
7.5
6.8
2001(b)
4.6
3.9
4.0
7.0
6.5
3.2
4.9
1.7
8.9
42.3
33.5 (c)
-8.1
-9.5
51.1
48.0
57.7
19.2
-33.8
-24.4
-4.4
-3.7
223.1 216.1 (c)
8.4
7.8
23.4
-3.8
56.9
54.9
-24.3
-3.7
228.8
6.9
6.3
20.7
-3.2
65.4
62.5
-24.1
-3.2
243.1
1.78
1.95
1.76
2.08
1.16
1.30
(a) Actual. (b) EIU forecasts. (c) EIU estimate.
Page 14 of 21
1.81
1.94
Fuqua School of Business
02-453-001
LogiTech
“Closing Transportation Gaps”
Exhibit 3
Segmentation, market size and expected market growth for the next five years
Total Market Size
(Units)
Argentina
Total Available Market
Trucks
Cargo
Service
Public Transportation (Buses)
Taxi Cabs
Total Cars
Brazil
Total Available Market
Trucks
Cargo
Service
Public Transportation (Buses)
Taxi Cabs
Total Cars
Annual
Growth
3.38%
3.43%
4.40%
1.26%
4.16%
10.96%
7.58%
2,000
2,001
2,002
2,003
2,004
1,591,254
1,500,000
1,320,000
180,000
44,600
46,653
4,665,329
1,623,541
1,530,000
1,346,400
183,600
46,291
47,250
4,725,045
1,656,500
1,560,600
1,373,328
187,272
48,045
47,855
4,785,526
1,690,146
1,591,812
1,400,795
191,017
49,866
48,468
4,846,781
1,724,492
1,623,648
1,428,810
194,838
51,756
49,088
4,908,819
5,712,847
5,069,651
4,461,293
608,358
430,062
213,134
21,313,351
5,956,963
5,246,226
4,616,679
629,547
481,137
229,600
22,959,957
6,214,567
5,428,952
4,777,478
651,474
538,277
247,338
24,733,775
6,486,692
5,618,042
4,943,877
674,165
602,204
266,446
26,644,632
6,774,471
5,813,718
5,116,071
697,646
673,722
287,031
28,703,117
Exhibit 4:
Expected client base at 2000. Client base is assumed to growth at rates given in Exhibit 3.
Segment
Cargo Trucks
Type of
Service
Long Haul
Short Haul
Service Trucks
Buses
Taxi Cabs
Cargo Trucks
Long Haul
Short Haul
ED
LF
HF
ED
HF
ED
LF
HF
Page 15 of 21
Expected client base (%)
Argentina
Brazil
20.57%
19.37%
53.02%
49.92%
9.36%
8.81%
2.81%
2.64%
8.51%
8.01%
1.91%
5.13%
0.40%
1.08%
0.49%
1.32%
Fuqua School of Business
02-453-001
LogiTech
“Closing Transportation Gaps”
Exhibit 5
Price assumptions for income forecast (Argentina and Brazil, in country denominated currency)
Year 1
1Q
Argentina (Ar$)
Route Certification
Cargo Trucks
Service Trucks
Buses
Taxi Cabs
Service Trucks
Buses
Taxi Cabs
Fleet Management
Price Reduction
Year 2
3Q
4Q
Year 3
Year 4
Year 5
ED
LF
HF
ED
HF
ED
LF
HF
ED
HF
$108.50
$234.63
$188.50
$88.50
$168.50
$108.50
$234.63
$188.50
$86.00
$166.00
$50.00
$108.50
$234.63
$188.50
$88.50
$168.50
$108.50
$234.63
$188.50
$86.00
$166.00
$50.00
0%
$108.50
$234.63
$188.50
$88.50
$168.50
$108.50
$234.63
$188.50
$86.00
$166.00
$50.00
0%
$108.50
$234.63
$188.50
$88.50
$168.50
$108.50
$234.63
$188.50
$86.00
$166.00
$50.00
0%
$109.30
$238.94
$192.49
$89.30
$172.49
$109.30
$238.94
$192.49
$86.80
$169.99
$50.00
0%
$107.70
$230.27
$184.47
$87.70
$164.47
$107.70
$230.27
$184.47
$85.20
$161.97
$50.00
7.5%
$109.47
$239.87
$193.35
$89.47
$173.35
$109.47
$239.87
$193.35
$86.97
$170.85
$50.00
10.0%
$107.85
$231.12
$185.27
$87.85
$165.27
$107.85
$231.12
$185.27
$85.35
$162.77
$50.00
12.5%
ED
LF
HF
ED
HF
ED
LF
HF
ED
HF
$90.63
$236.66
$187.17
$90.63
$187.17
$90.63
$236.66
$187.17
$89.13
$185.67
$38.00
$90.63
$236.66
$187.17
$90.63
$187.17
$90.63
$236.66
$187.17
$89.13
$185.67
$38.00
0%
$90.63
$236.66
$187.17
$90.63
$187.17
$90.63
$236.66
$187.17
$89.13
$185.67
$38.00
0%
$90.63
$236.66
$187.17
$90.63
$187.17
$90.63
$236.66
$187.17
$89.13
$185.67
$38.00
0%
$87.79
$221.24
$172.93
$87.79
$172.93
$87.79
$221.24
$172.93
$86.29
$171.43
$38.00
0%
$85.94
$211.22
$163.68
$85.94
$163.68
$85.94
$211.22
$163.68
$84.44
$162.18
$38.00
7.5%
$82.43
$192.23
$146.15
$82.43
$146.15
$82.43
$192.23
$146.15
$80.93
$144.65
$38.00
10.0%
$79.53
$176.55
$131.67
$79.53
$131.67
$79.53
$176.55
$131.67
$78.03
$130.17
$38.00
12.5%
Fleet Management
Price Reduction
Brazil (Br$)
Route Certification
Cargo Trucks
2Q
Note: Prices were set with a margin of 100% over total variable costs for each service in each country.
Page 16 of 21
Fuqua School of Business
02-453-001
LogiTech
“Closing Transportation Gaps”
Exhibit 6
Key assumptions probability distribution
Variable
Pessimistic
Market Assumptions
Market Share Year 4
Discount Rate
Terminal Growth Value (%)
Market Size Growth
Trucks
Public Transportation
Cabs
Fleet Mgment Penetration Coef.(% base)
With Basic Service
Without Basic Service
B2B Growth in the region (% base)
Tech. Penetration Curve
Growth Rate Coef. (% base)
Variable Cost Assumptions
Device Cost
Initial Price (% base)
Price Evolution (neg. exponential)
Device Installation
Initial Cost (% base)
Cost Evolution
Communication Costs
Cost Evolution (neg. exponential)
Middle
Optimistic
Pessimistic
Middle
Optimistic
12.00%
22%
1.00%
15.00%
27%
2.50%
20.00%
35%
5.00%
15.00%
24%
1.00%
20.00%
29%
2.50%
25.00%
37%
5.00%
2.00%
2.00%
1.00%
3.00%
3.79%
1.28%
5.00%
6.50%
1.50%
3.00%
7.00%
6.00%
3.48%
11.88%
7.73%
6.00%
14.00%
9.00%
0.60
0.75
0.65
0.90
1.00
1.00
1.00
1.50
1.20
0.70
0.80
0.65
0.85
1.00
1.00
1.00
1.70
1.20
0.80
1.00
1.30
0.80
1.00
1.40
0.80
0.45
1.00
0.50
1.30
0.61
0.80
0.45
1.00
0.50
1.30
0.61
0.80
0.20
1.00
0.33
1.20
0.40
0.80
0.20
1.00
0.33
1.20
0.40
0.30
0.37
0.50
0.30
0.37
0.50
Other Assumptions: Brazil is expected to maintain its currency fluctuating around 2:1 in year 2000, loosing value up to a mean of 2.7:1
in year 2002 and decreasing down to a mean of 2.2:1 for year 2004. Argentina’s exchange is currently pegged to the dollar and
probability of devaluation is currently low of around 5% and growing to 30% in year 2004. In case of a devaluation, currency exchange
would move up to a maximum of 2.5 in the first year, decreasing to around 1.8 by year 3 or 4.
Page 17 of 21
Fuqua School of Business
02-453-001
LogiTech
“Closing Transportation Gaps”
Exhibit 7
Fixed operating costs by site (in country denominated currency)
Year 0
Fixed Operating Costs
US (US$)
SW Maintenance
HW Maintenance
HW Leasing
Communication (not
device, HW)
Facilities Maintenance
Total
Brazil (Br$)
SW Maintenance
HW Maintenance
HW Leasing
Communication (not
device, HW)
Facilities
Total
Argentine ($Ar)
SW Maintenance
HW Maintenance
HW Leasing
Communication (not
device, HW)
Facilities
Total
Marketing Costs
Other Expenses
Total Fixed Operating Costs
Year 1
Q4
Q1
$ 58,899
$ 29,121
$122,307
$ 8,400
Q2
Year 2
Q3
Year 3
Year 4
Q4
$ 76,525 $ 80,008 $ 84,407 $ 85,886
$ 36,645 $ 44,506 $ 44,843 $ 44,927
$ 153,910 $ 186,925 $ 188,340 $ 188,694
$
8,400 $
8,400 $
8,400 $
8,400
$
$
$
$
377,651
173,617
766,099
33,600
$
$
$
$
407,465
174,797
771,053
33,600
$
$
$
$
$109,125 $ 111,225 $ 111,525 $ 112,325 $ 112,525
$327,852 $ 386,705 $ 431,364 $ 438,315 $ 440,433
$ 454,000
$ 1,804,967
$ 456,800 $
$ 1,843,714 $
$
855 $
$ 9,127 $
$ 38,335 $
$ 30,000 $
4, 486
11,392
47,662
30,000
$
$
$
$
24,891
51,142
47,846
120,000
$
$
$
$
34,369
56,525
221,246
120,000
$ 45,875 $ 47,825 $ 48,350 $ 49,100 $ 49,100
$124,192 $ 129,362 $ 136,443 $ 140,352 $ 142,640
$
$
194,375
438,254
$
$
$
$
$
$
-
$
$
$
$
11,932
25,886
200,495
60,000
$
$
$
$
$
$
-
$
$
$
$
2,736
10,466
38,335
30,000
-
$
$
$
$
$
$
$
$
3,309
10,826
43,959
30,000
-
$
- $
$
- $
$ 500,000
$ 3,960 $ 11,700 $ 15,480
$456,004 $1,027,767 $ 583,287
$
$
$
$
$
$
$
$
4,436
11,348
45,468
30,000
2,283
10,114
42,477
30,000
$ 46,175
$ 131,048
$ 500,000
$ 21,600
$1,231,315
Year 5
$
$
$
$
$
$
$
$
2,976
10,655
44,750
30,000
$ 88,925
$ 177,306
$ 24,120
$ 784,499
Page 18 of 21
$ 310,600
$ 608,913
$ 1,000,000
$ 144,720
$ 3,996,854
$
$
$
$
451,421
175,134
772,468
33,600
$
$
$
$
495,455
176,819
779,545
33,600
457,600 $
1,890,222 $
461,600
1,947,018
49,615
65,697
243,852
120,000
$
$
$
$
61,357
72,110
282,377
120,000
194,375 $
626,514 $
194,375 $
673,539 $
194,375
730,218
13,331
27,216
206,081
60,000
$
$
$
$
16,484
29,894
217,327
60,000
$
$
$
$
18,916
31,994
226,147
60,000
$ 480,400 $
$ 787,028 $
$ 1,500,000 $
$ 169,200 $
$ 4,926,456 $
652,300
976,004
1,500,000
208,800
5,248,566
$
$
$
$
$
823,300
1,160,356
1,500,000
243,360
5,580,953
Fuqua School of Business
02-453-001
LogiTech
“Closing Transportation Gaps”
Exhibit 8
Variable Costs (Operating costs and Payroll and Benefits, in country denominated currency)
Year 0
Year 2
Year 1
Q4
Q1
Q2
Q3
Year 3
Year 4
Year 5
Q4
Variable Operating
Costs
Brazil
Safety
Communications
Device Cost and
Installation Leasing
Total
Argentine
Safety
Communications
Device Cost and
Installation Leasing
Total
Total Variable
Operating Costs
$
$
$
-
$
6,469
$ 68,671
$ 50,867
$ 21,574 $ 41,015 $ 64,791
$ 229,023 $ 435,394 $ 687,783
$ 167,604 $ 316,120 $1,991,850
$ 700,658
$ 7,418,324
$ 5,867,456
$ 1,991,915 $ 4,478,238 $ 7,560,143
$21,019,301 $ 47,088,803 $ 79,207,856
$16,628,125 $ 37,289,246 $ 62,803,056
$
-
$ 126,008
$ 418,201 $ 792,529 $2,744,423
$13,986,437
$39,639,342 $ 88,856,287 $149,571,055
$
$
$
-
$
$
$
-
$
$
$
- $ 11,171 $ 36,318
- $ 26,241 $ 85,308
- $ 299,611 $ 524,375
$ 618,126
$ 1,451,614
$ 1,133,574
$ 2,010,340 $ 4,703,630 $ 8,567,228
$ 4,720,010 $ 11,040,800 $ 20,104,795
$ 3,685,901 $ 8,621,669 $ 15,699,385
$
-
$
-
$
- $ 337,023 $ 646,001
$ 3,203,314
$10,416,251 $ 24,366,098 $ 44,371,408
$
-
$ 126,008
$ 418,201 $1,129,551 $3,390,424
$17,189,751
$50,055,593 $113,222,385 $193,942,463
$387,000
$183,483
$
-
$ 523,800
$ 490,941
$
-
$ 541,800 $ 599,400 $ 675,180
$ 560,367 $ 646,323 $ 710,955
$ 314,213 $ 515,309 $ 697,193
$ 4,001,592
$ 5,256,165
$ 4,478,911
$ 4,804,951 $
$ 6,738,318 $
$ 5,194,930 $
$570,483
$1,014,741
$1,416,380 $1,761,032 $2,083,328
$13,736,668
$16,738,199 $ 21,410,175 $ 25,675,272
Payroll and Benefits
US
Brazil
Argentine
Total Payroll and
Benefits
Page 19 of 21
5,419,846 $ 6,415,431
9,572,070 $ 11,562,953
6,418,259 $ 7,696,889
Fuqua School of Business
02-453-001
LogiTech
“Closing Transportation Gaps”
Exhibit 9
Investment and Amortization for U.S., Brazil, and Argentina (in US$)
USA
Investment
Software
Hardware
Facilities
Recruiting
Total Cash
Investments
Implementation
Total Hours
Total Investment
Brazil
Investment
Software
Hardware
Facilities
Recruiting
Total Cash
Investments
Implementation
Total Hours
Total Investment
Argentina
Investment
Software
Hardware
Facilities
Recruiting
Total Cash
Investments
Implementation
Total Hours
Total Investment
Year 0
Year 1
Q4
Q1
Year 2
Q2
Q3
Year 3
Year 4
Year 5
Q4
$ 694,980
$1,164,827
$ 142,500
$ 211,800
$1,049,280
$ 378,230
$ 300,985
$ 42,000
$ 38,000
$ 458,230
$ 75,589
$ 314,423
$
6,000
$
5,000
$ 86,589
$ 104,555
$ 13,480
$ 16,000
$ 16,000
$ 136,555
$
$
$
$
$
36,975
3,370
4,000
4,000
44,975
$ 298,995
$ 26,960
$ 32,000
$ 37,000
$ 367,995
$ 176,810
$ 11,795
$ 14,000
$ 24,000
$ 214,810
$
$
$
$
$
260,760
3,370
4,000
8,000
272,760
$
$
$
$
$
260,000
16,850
20,000
27,000
307,000
$4,098,640
$4,098,640
$5,147,920
$ 461,310
$ 461,310
$ 919,540
$ 232,030
$ 232,030
$ 318,619
$ 16,850
$ 16,850
$ 153,405
$
$
$
4,590
4,590
49,565
$ 32,530
$ 32,530
$ 400,525
$ 15,470
$ 15,470
$ 230,280
$
$
$
4,420
4,420
277,180
$
$
$
18,100
18,100
325,100
$ 17,100
$ 365,095
$ 77,500
$ 61,332
$ 94,600
$
$
$
$
$
38,810
53,560
39,000
70,680
77,810
$
$
$
$
$
11,770
14,370
10,500
15,960
22,270
$
$
$
$
$
24,545
20,900
15,000
19,760
39,545
$
$
$
$
$
1,000
1,750
1,000
$ 51,420
$ 71,100
$ 51,000
$ 83,600
$ 186,020
$
$
$
$
$
50,990
53,825
34,500
47,120
85,490
$
$
$
$
$
81,330
91,725
61,500
106,400
142,830
$
$
$
$
$
63,510
64,125
40,500
50,920
104,010
$ 281,917
$ 281,917
$ 376,517
$ 137,400
$ 137,400
$ 215,210
$
$
$
15,150
15,150
37,420
$
$
$
34,970
34,970
74,515
$
$
$
1,000
$ 61,140
$ 61,140
$ 247,160
$ 45,830
$ 45,830
$ 131,320
$
$
$
82,610
82,610
225,440
$
$
$
53,670
53,670
157,680
$
$
$
$
$
-
$
$
$
$
$
-
$
$
$
-
$
$
$
-
$
$
$
$ 112,700
$
$
$
$
-
$ 46,250
$ 404,545
$ 83,500
$ 56,000
$ 129,750
$
$
$
$
$
14,160
21,650
15,000
33,000
29,160
$ 33,970
$ 51,175
$ 37,500
$ 59,000
$ 130,470
$
$
$
$
$
6,995
13,300
9,000
16,000
15,995
$
$
$
$
$
15,765
26,775
19,500
42,000
35,265
$
$
$
$
$
12,160
21,000
15,000
38,000
27,160
$ 386,557
$ 386,557
$ 516,307
$
$
$
20,780
20,780
49,940
$ 51,610
$ 51,610
$ 182,080
$
$
$
13,430
13,430
29,425
$
$
$
28,580
28,580
63,845
$
$
$
21,780
21,780
48,940
Page 20 of 21
Fuqua School of Business
02-453-001
LogiTech
“Closing Transportation Gaps”
Exhibit 10
Transportation Web Portal Revenue Projections (currency in US$)
Transportation Exchange
Subscribers Fee Revenues
Total Available Market (TAM) of Cargo
Argentina
Brazil
Advanced Internet Penetration
Potential Exchange Market
Trans. Exchange Mkt Pen.
Total Subscribers
Less Fleet Management Subs.
Quantity of New Subscribers
Monthly Subs. Fee per Truck
Total Revenue (Yearly)
Commission Revenues in US$
% of Exchange Subs./TAM
Estimated TAM Revenues
Argentina
Brazil
Estimated Subscriptions' Revenues
Back Hauling Opportunities
Reduction in Empty Return Trips
Increase in Subscriber Revenues
Commission
Total Revenue (Yearly)
Retail Commissions
TAM
% with Internet Access
Potential Exchange Market
% Online Buyers/Internet Users
Potential Buyers (In # of Vehicles)
Average spending/vehicle
Estimated % of Online Commerce
Estimated $ Spent on the Internet
Commission
Total Revenue (Yearly)
2,000
$
$
2,001
6,569,651
1,500,000
5,069,651
11.75%
771,934
3%
23,158
2,018
21,140
2.00
253,683
$
$
2,002
6,776,226
1,530,000
5,246,226
17.57%
1,190,607
6%
71,436
11,052
60,384
2.00
$
724,609 $
6,989,552
1,560,600
5,428,952
26.27%
1,836,421
9%
165,278
39,912
125,366
2.00 $
1,504,391
2,003
7,209,854
1,591,812
5,618,042
39.29%
2,832,643
11%
311,591
105,340
206,251
2.00
$
2,475,007
2,004
$
$
7,437,366
1,623,648
5,813,718
58.75%
4,369,452
15%
655,418
165,039
490,379
2.00
5,884,549
0.32%
$54,857,695,413
$14,225,000,000
$40,632,695,413
173,929,104
24,680,540
20%
4,936,108
5%
$
246,805
0.94%
$54,857,695,413
$14,225,000,000
$40,632,695,413
516,962,463
73,356,974
20%
14,671,395
5%
$
733,570
2.10%
$54,857,695,413
$14,225,000,000
$40,632,695,413
1,151,910,261
163,456,066
20%
32,691,213
5%
$
1,634,561
3.81%
$54,857,695,413
$14,225,000,000
$40,632,695,413
2,090,435,104
296,632,741
20%
59,326,548
5%
$
2,966,327
7.71%
$54,857,695,413
$14,225,000,000
$40,632,695,413
4,230,482,141
600,305,416
20%
120,061,083
5%
$
6,003,054
7,304,100
28.40%
2,074,364
12%
248,924
1,527
0.20%
3.05
10%
76,012
7,580,504
35.43%
2,686,072
14%
382,520
1,527
0.53%
8.12
10%
310,708
7,871,067
44.21%
3,479,802
17%
588,092
1,527
1.42%
21.61
10%
1,270,649
8,176,838
55.16%
4,510,322
20%
904,593
1,527
3.76%
57.47
10%
5,198,944
8,498,963
68.82%
5,849,104
24%
1,392,163
1,527
10.01%
152.88
10%
21,283,030
$
$
$
$
Page 21 of 21
$
$
$
$
$
$