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INDEX

Page # Technology cost savings . . . . . . . . . . . . . . . . . . . . . . 1 Cost per m2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Business Model. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 State of the Art (Technology) . . . . . . . . . . . . . . . . . . . 6 Technology Benefits. . . . . . . . . . . . . . . . . . . . . . . . . . 7 Other Benefits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Manufacturing Cycle (Pictures) . . . . . . . . . . . . . . . . . 9 Current facts about our Plant and Technology. . . . . . 15 Detailed Summary of the Manufacturing Process. . . . 16 Resources Needed for Factory Construction. . . . . . . . 19 License Fee. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

 

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TECHNOLOGY (COST SAVINGS) In this exercise we do not include other parameters such as quality problems, long execution times, problems with high labor turnover, theft, variable budgets, lack of standardization of processes, etc; all these issues affect the costs and the quality extremely if you use the traditional way of building the houses at the development site, also the changing weather conditions make the cost of the project go even higher. This exercise was carried out with the following information:

1. Using our proprietary technology and manufacturing methods. 2. Using the purchasing power of one of the big 5 developers in

Mexico. 3. Building costs of one of the big 5 developers in Mexico (using

the traditional method-building each house at the real estate developments)

* Note: At the following chart “Co's” mean large construction companies averaging dollars per M2 With this exercise we reached the following results:

1. Total savings per m2 = $ 124.00 dollars (47%) 2. Total savings in a 36m2 home= $ 4,464 dollars 3. So manufacturing 1,040 houses we save $4’642,560 dollars.

In this exercise, we do not include other parameters that strongly affect costs in the traditional model of housing construction on site (low-income housing development) in one single event. We know that using our technology, the cost savings is approximately 47% average vs. the best cost per m2 in the current housing market, implementing this technology the benefits are increased in parallel to the volume of manufactured homes (see chart below)

 

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Construction Company “Co” using the traditional old method of building houses at the low-income housing development. Size of the house (36m2) in US Dollars: Cost per m2 Co – Construction Company $263 Co – Using PMM proprietary technology $139 Cost difference (minus) $124 Average cost savings in % 47% Total cost (36m2-finished house) Co – Construction Company (old method) $9,468 Co – Construction Company (using PMM technology) $5,004 Cost Difference (Minus) $4,464 Cost savings achieved: 1 house $ 4,464 1,040 houses $ 4’642,560 2,080 houses $ 9’285.120 3,120 houses $13’927,680 4,160 houses $18’570,240 5,200 houses $23’212,800

 

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Company Mission

• Mission: To solve, through technology, the demand for affordable housing.

• Approach: Improving quality and lowering costs. Solving a major problem for the old model in the affordable housing construction market in the world.

Business Model To providing the best solution to the problems of conventional construction.

• Manufacturing, not project management. • Permanent process improvement, not just single events. • Unitary Budget Control. • Approach to speed manufacturing. • Financial planning, (materials and production) • Economies of scale

Speed and substantial savings

• Manufacturing control and manufacturing Speed • Total control over manufacturing unit costs. • Manufacturing speed (linear time on project management VS

Plant time-manufacturing and shipment) ratio: 24hrs VS 19 days average; result: Very high performance all resources.

 

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“State of the art” (The latest technological innovation) With this new technology you achieve cost reductions in materials and workmanship, greater speed of construction and strict cost control, giving you the opportunity to have a faster business cycle, and the most important fact is that you will produce houses with the highest quality for the market;  this will place you as the real low cost-high tech housing developers. The role of technology A typical 36m2 construction is usually built in 2.5 weeks. That time is reduced to hours using our proprietary technology so far is the most advanced technology in the world. We have revolutionized the affordable housing industry by combining technology with science in an assembly line. The system produces high quality housing in record time. Using our proprietary technology, the walls and ceilings are poured (cellular concrete patented formula) that provides a substantial increase in insulation against cold and heat, as well as other benefits. Technology Benefits The houses are built in a controlled environment and production is not affected by the weather. As a result of the manufacturing process, quality control and cost efficiency are much higher and easily monitored and controlled. The design and process (assembly line) allow for quick construction. The controlled environment and production system allows a 24 hours-continuous manufacturing program. Technology Benefits in the process The speed of replication maximizes output while maintaining a high standard of quality.

 

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Technology Benefits for each house * The patented process of cellular concrete increases strength and reduces the weight of the house at the same time. More importantly, is the fact that changes the properties of concrete in terms of insulation for greater convenience. The house stays cool during the day and warm at night due to the shift in heat transmission. In thermodynamics, standard concrete has an R-3 factor. The process of cellular concrete changes that factor substantially. When compared to a traditionally built home, there are marked differences in the interior of the house the temperature is 5 degrees Celsius cooler during the summer and 6 degrees Celsius during the winter season. With our cell system it does not need interior insulation. Houses are Efficient (thermodynamics) the houses are manufactured with reinforced steel and concrete steel that fact makes them termite-proof and fireproof. * Resistance to earthquakes and to the strength of (high winds) hurricanes is attributed to the ductile-strength. Assorted designs are available for manufacturing. * The Houses are 100% adaptable to any part of the world. An individual design allows the prefabricated modulation to fit assorted architectural designs The houses are long-lasting. Last much longer than other comparable structures made out of wood, plastic or composite materials. The houses are noise proof and waterproof. Other Benefits Most materials are purchased locally, supporting the local economy. * As the work is done in a controlled atmosphere (inside a plant), it makes it safer for the workforce and this increases their productivity in a steadily way. The manufacturing plants create jobs for people trained and also for people without any skills.

 

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Problems with traditional construction methods Using traditional methods of construction on site, the following problems and imperfections may happen:

• Construction asymmetrical lines • uneven surfaces • construction structural imperfections

Using our patented technology you will have the following results Smooth Finish in concrete surfaces Symmetrical lines of construction Perfect angles (90 degrees) Leveled surfaces Higher quality Passed with flying colors the difficult Challenge With a worsening shortage of housing, developing a high quality product to solve the crisis was a challenge. We have beaten this challenge by creating an ingenious way to building high quality housing, efficient, affordable and safe using an effective production process The use of our patented cellular concrete brings about multiple benefits, including reducing the housing shortage with a high quality house besides doing it a lot faster.

 

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Manufacturing Cycle in Pictures

 

    

   

 

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Current Facts about our plant and technology

• The plant is the heart of the process. It is where the assembly line process take place every minute of time spent on fabrication is accounted for.

• Inventory – Having a contained fabrication plant allows the “plant operator” to keep a tight control on all components, which is always a challenge for traditional builders.

• Labor Control – The plant along with the assembly line process, allows the “plant operator” to keep a tight control on labor, as each step has to be completed in the allotted time.

• The elements – While inclement weather sometimes stops traditional building projects for the day, an enclosed plant environment (line in our plant) does not.

• Quality – Our houses are made of steel reinforced concrete, they are termite proof, wind and storm resistant as well as earthquake resistant.

• Manufacturing – Error is eliminated by using steel forms to replicate the home design. The process is maximized in a contained environment by eliminating the need to customize housing plans.

• Architecturally friendly - A single form change allows us to conform to any architectural design needed. Thus, the houses are 100% adaptable to anywhere in the world

• Economic impact – Each plant has the ability to create hundreds of jobs either as direct jobs or as secondary job, as most all of the materials used will be purchased locally, in turn supporting the local economy.

 

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Detailed summary of the manufacturing process Pouring floors:

1. Clean and prepare floor steel form 2. Install side rails. 3. Apply “cast off” chemical agent to prevent adherence) 4. Install block outs. 5. Install harness network for hydraulics, sanitary and gas lines. 6. Install and secure structural wire mesh. 7. Install and secure 3/8 re-bar for wall connection. 8. Pour concrete at (F’C = 300kg/cm2 9. Vibrate concrete 10. Level concrete after vibration. 11.Cure concrete; (5 hours with steam, or 15 hours without Steam) 12. Remove side rails. 13. Prepare floor platform 14. Rotate floor and steel form 180 degrees 15. Place floor on platform 16. Remove bolts from floor form. 17. Rotate steel form 180 degrees for preparation of next poor. 18. Install separator between floors.

Pouring smooth panels and façade:

1. Clean an prepare forms. 2. Install side rails. 3. Apply “Cast off” (chemical agent to prevent adherence). 4. Install block out for electric meter base (façade only) 5. Install electric meter pipe and cable (façade only) 6. Install window block out (façade only) 7. Install and secure structural wire mesh. 8. Install module joining plates 9. Pour cellular concrete according to our standard procedures 10.Level concrete 11. Cure concrete 12. Remove side rails

 

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13. Remove panels from form. 14. Install panel on module.

Pouring Modules:

1. Clean and prepare internal form 2. Apply “cast off” (chemical agent to prevent adherence) 3. Install smooth panel and façade joining plates. 4. Install window block outs. 5. Install electrical harness. 6. Set internal form on floor. 7. Establish the height required of the internal form through the

adjustable bolts supported in the floor. 8. Expand internal form 9. Install door frame and module spacer block outs.

10. Install harness network for hydraulics and sanitary lines 11. Install vertical hoisting anchors. 12. Install and secure wire mesh on walls and roof 13. Seal floor and walls module joints 14. Install 3/8 re-bar reinforcement of ceiling, windows and doors. 15. Seal electrical boxes 16. Clean external steel forms 17. Apply “cast off” (chemical agent to prevent adherence) 18. Move internal steel form into external steel form 19. Close walls of external steel form 20. Install light sockets and spouts block outs 21. Pour cellular concrete on modules 22. Cure concrete; (5 hours with steam, or 15 hours without steam). 23. Remove bolts from sockets and spouts block outs. 24. Open walls on external steel form 25. Remove internal steel form from external steel form. 26. Remove bolts from internal lights block outs. 27. Raise height adjustment bolts of internal steel form. 28. Close internal steel form wall. 29. Remove internal steel form and place on metal floor platform. 30. Remove doors, windows, and module separator block outs

 

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Pouring Divider Walls:

1. Install structural wire mesh reinforcements. 2. Install electrical wiring 3. Install wire mesh 4. Install interior wall form 5. Pour cellular concrete into divider walls. 6. Cure concrete 7. Remove forms. 8. Clean forms.

Finishing area activities:

1. Pressure wash modules to remove loose concrete particles. 2. Patch pores on the module 3. Install internal door frames on modules 4. Apply texture coating (internal and external walls) 5. Install tile in shower stall 6. Install hardware and accessories in bathroom. 7. Install light sockets and electrical outlet covers. 8. Install doors and windows. 9. Test hydraulic and electrical systems.

10. Move houses to shipping area and or store finished product.

 

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Resources needed for Factory construction Below is a table of resources needed to manufacture concrete modular houses using our proprietary technology. The price of the machinery and equipment needed varies with the factory package. The packages range from producing 4 houses per day on an 8 hour shift to producing 8 houses a day on a 24 hour work schedule. Machinery and Equipment Electric Power Area: Safeguard interrupters, thermo magnetic interrupters, 440 50 kva transformer, distribution switchboard, electrical material, electrical manhole of 1.0m x 1.0m 400w spot lighting Price $401,873.05 Pneumatic Area Air piping, (2) 100 hp air compressor, and air storage tank. Price $287,276.44 Rebar Area: Wire power welding machine, master vise, oxyacetylene cutting equipment, driller, ¼ & 5/8 steel plate cutter, master grinder, portable polisher, disc saw, welding rod machine, rebar bender & chopper machine, pipe treading machine, wire mesh bender machine, work tables. Price $ 100,677.57 Form work area: Table saw, belt saw, work tables Price $4,353.62 Plumbing area: Master grinder, skill saw, work tables, welding equipment. Price $4,353.62 Quality Control Area: Laboratory equipment and Facilities. Price $ 146,516.22

 

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Concrete Area: Concrete batch plant, 7m3 drum truck , pay loader Price $2’176,812.35 Floors Area: Eaves forms, air flotation equipment, 3m3 concrete bucket, 15 ton electrical crane, air flotation equipment, equipment for cellular concrete. Price $472,488.57 Steel forms 4 interior 4 exterior 4 floor 4 façade 4 smooth panel 24 platform-form.ext 4 interior walls Price $3’ 515,066.35 Forms area Jigs, 7m3 concrete buckets, 15 ton electrical crane, air flotation equipment, equipment for cellular concrete Price $481,419.42 Divider walls area Bedroom forms, bathroom forms, 5 ton crane, 3 ton crane flotation equipment concrete bucket 1m3 Price $146,516.22 Finishing Area: Wood platforms, air flotation equipment, texture machine Price $115,119.88 Concrete setting area 100 hp steam machine, lines and equipment installation Price $251,693.67 Installation/support team Pick up truck (one metric ton), general tools and 100,000 lbs crane. Price $895,842.01

 

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Machinery and equipment Total: $9’000,000

License fee (4 bay plant) $1’000,000 Total $10’000,000 US Dollar. Note: The prices for the land (60,000m2) and the Industrial structures (17,200 m2) are to be locally determined.