1. Samstel
Nigeria Ltd.
Investor prospectus

2. WHO WE ARE
• SAMSTEL NIG. Limited is an indigenous company incorporated on the 18th of April,
1989. The company began operation as a buyer of Agricultural produce (LBA- Licensed
Buying Agent) and distributor of agro-allied chemicals on September, 2010
• The company has her head office in Lagos and coordinates the agricultural produces
business from a branch office in Ile-Oluji, Ondo State
• SAMSTEL NIG. Limited is an indigenous company incorporated on the 18th of April,
1989. The company began operation as a buyer of Agricultural produce (LBA- Licensed
Buying Agent) and distributor of agro-allied chemicals on September, 2010
• The company has her head office in Lagos and coordinates the agricultural produces
business from a branch office in Ile-Oluji, Ondo State
OBJECTIVES
To be a leading Agricultural
produce buyer in Nigeria
To grow our bottom-line by
continuously improving our
operational processes and
staff competence to the
benefit of our shareholders
and investors
To set the pace for supply
chain management in the
agricultural sector of Nigeria
and West Africa

3. WHAT WE DO
We specialize in the trading of agricultural cash
products and distribution of agro-allied chemicals
We specialize in the trading of agricultural cash
products and distribution of agro-allied chemicals
COCOA
PALM KERNEL
AGRO-ALLIED
CHEMICALS

4. OUR PEDIGREE
Management
Team with over
20 years in
Agricultural
produce
Trading
Management
Team with over
20 years in
Agricultural
produce
Trading
Major Clients
– SARO,
KIRANIL,
OLAM, ICPL
Major Clients
– SARO,
KIRANIL,
OLAM, ICPL
Large Supply
Network
With Over 50
Agents And
Farmers
Large Supply
Network
With Over 50
Agents And
Farmers
Operating
For More
Than 3 Years
Operating
For More
Than 3 Years
Standard
Business
Process
Standard
Business
Process

5. ADVANC
E
PAYMEN
T
MODEL
ADVANC
E
PAYMEN
T
MODEL
SEE &
BUY
MODEL
SEE &
BUY
MODEL
OUR BUSINESS MODEL
In SAMSTEL NIG. Ltd we run an HYBRID business model, combining both the ADVANCE PAYMENT model
and the SEE & BUY model
In SAMSTEL NIG. Ltd we run an HYBRID business model, combining both the ADVANCE PAYMENT model
and the SEE & BUY model
MODEL DESCRIPTION PROS CONS
• Credit line/Advance
Payment from Exporter to
LBA to supply at an agreed
price within a specified
period
• LBA disburses the received
funds as an Advance
payment to Agents to supply
Cocoa/agricultural produce
in order to meet the supply
deadline
• Agents buys the produce
from the farmers with the
received funds from the LBA
• The LBA buys from an Agent
or farmer directly with his
funds at an agreed price.
• The LBA negotiates for a
profitable price with the
Exporter or Local processor
based on an informed
knowledge of his cost price
• Access to more working
capital to buy more products
with an increased profit
margin
• The LBA is not under
pressure to meet supply
deadlines.
• More attention is paid to
the actual management of
the business.
• More bargaining Power
• Eroded capital base due to
bad credits (defaulter)
• Lesser attention is paid to
business management
rather the company pursues
credit recovery
• The LBA is always under
pressure to meet supply
deadlines
• Very capital intensive
We
Operate
an
HYBRID
business
Model

6. VALUE CHAIN & KEY SUCCESS FACTORS
Key
Success
Factors
•Adherence to
produce
buying
guidelines
•Efficient
operating
Processes
•Outlined
Credit
Management
Process
•Huge Capital
base
•Competent
staff and
management
team
• Controlled
Credit-Line
• Improved
and
sustained
Government
assistance
• … • …• Adherence
to
production
best
practice
• Good
negotiating
skills
• Adherence
to
production
best
practice

7. OPERATIONAL PROCESS FLOW
• 1.1 Informs
the
Manager/
Accounting
officer of
intention to
sell produce
• 1.2 Request
for the
buying price
• 2.1 Agree
terms of
trade
• 2.2 Confirm
quantity of
produce to
be supplied
• 2.3 Fill the
agreement
form and
sign
• 3.1 Supply
the produce
to the
warehouse
or arrange
with the
Operations
manager for
pick up, if
agreed at
initiation
• 3.2 Pick-up
produce
from Agents
store if
agreed at
initiation
• 4.1 Offload
the produce
into the
warehouse
• 4.2 Take the
weight of
the produce
and fill the
weight
register
• 4.3 Take the
necessary
quality
parameters
(Moisture
content etc)
• 4.4 Check
for
contaminant
s and
defects
(Moulds,
Slatin
Mould)
• 5.1 Confirm
that the
necessary
discounting
was done
• 5.2 Verify
the agreed
price from
the
agreement
form
• 5.3
Recommend
for approval
& payment
• 5.4 Confirm
that the CO
recommend
ed for
Payment
• 5.5 Make
payment via
EFT, Cheque
or Cash.
• 5.6 Issue
receipt and
receipt tally
sheet
• 6.1 Market
produce to
Exporter/Lo
cal
processors/
foreign
processor
• 6.2
Negotiate a
profitable
selling price
with the
Exporter/Lo
cal
processor
• 6.3 Sign
agreement
with
Exporters/Lo
cal
processor
• 7.1 Grading
of produce
to exporter’s
specification
• 7.2 Process
the produce
until it
meets the
required
specification
• 7.3 Grade,
Package and
Evacuate to
Exporter
• 8.1 Collect
payment on
delivery of
produce

8. ANNUAL PROFIT & LOSS PROJECTION
SAMSTEL NIG. LIMITED ANNUAL PROFIT & LOSS PROJECTION
42,74840,93139,40438,15037,15136,39535,87535,586
21,28721,22521,16421,105
40,33938,83737,60336,61935,87635,36435,08035,021
20,94620,88720,82820,770
2,1331,8181,5261,25599975552028965626059
JuneMayApril DecemberNovemberOctoberSeptemberAugustJuly MarchFebruaryJanuary
276276276276276276276276276276276276
UNIT (TONNES)
SALES ('000)
DIRECT COST OF
SALES ('000)
GROSS MARGIN
('000)
Operating Expenses
('000)
Interest Expenses
Taxes incurred
Net Profit ('000)
6767 67.1967.19 67.3867.38 67.5767.57 112.97112.97 113.16113.16 114.08114.08 115.73115.73 118.13118.13 121.3121.3 125.28125.28 130.13130.13
335335 335.94335.94 337.83337.83 340.66340.66 564.86564.86 795.66795.66 1,031.051,031.05 1,274.691,274.69 1,530.321,530.32 1,801.811,801.81 2,093.212,093.21 2,408.842,408.84
Expenses
LIGHT CROP SEASON MAIN CROP SEASON
START-UP WORKING CAPITAL
AVG. BUYING PRICE
7000000
315,000.00

9. FINANCIALS
NET PROFIT_NET TONNE
130.1125.3121.3118.1115.7114.1113.2
113.0
67.667.467.267.0
2,133.2
1,817.5
1,254.71,254.7
999.0
755.4
520.0
289.2
65.062.260.359.3
April MarchJuneMay July August September October NovemberDecember FenruaryJanuary
Net profit (‘000)Unit (Tonnes)
HIGHLIGHTS:
•ROI (Return On Investment) is 24% .
•A risk based approach to Credit Line Access during Peak period – implementing the HYBRID business model.
•The monthly profit is re-invested into the business
HIGHLIGHTS:
•ROI (Return On Investment) is 24% .
•A risk based approach to Credit Line Access during Peak period – implementing the HYBRID business model.
•The monthly profit is re-invested into the business
CAPITAL INVESTMENT 8,800,000.00
PROJECTED NET PROFIT 2,133,000.00
RETURN ON INVESTMENT % (ROI) 24%

10. FINANCIALS
NET PROFIT_NET TONNE
130.1125.3121.3118.1115.7114.1113.2
113.0
67.667.467.267.0
2,133.2
1,817.5
1,254.71,254.7
999.0
755.4
520.0
289.2
65.062.260.359.3
April MarchJuneMay July August September October NovemberDecember FenruaryJanuary
Net profit (‘000)Unit (Tonnes)
HIGHLIGHTS:
•ROI (Return On Investment) is 24% .
•A risk based approach to Credit Line Access during Peak period – implementing the HYBRID business model.
•The monthly profit is re-invested into the business
HIGHLIGHTS:
•ROI (Return On Investment) is 24% .
•A risk based approach to Credit Line Access during Peak period – implementing the HYBRID business model.
•The monthly profit is re-invested into the business
CAPITAL INVESTMENT 8,800,000.00
PROJECTED NET PROFIT 2,133,000.00
RETURN ON INVESTMENT % (ROI) 24%