ASWAQ MASR PROJECT
Business Model
April 21’
GRG Founders
Dr. Florian
Schmid
Chairman of the
Supervisory Board
Ph.D. Eng.
Mohamed Sanaa,
Chairman of
Executive Board
Dr. Schmid has 20 years professional
experience in retail, particularly in developing
strategies, new store concepts, multichannel, expansion and customer- centered
strategies.
Dr. Sanaa has over 15 years experience in
both public and private sectors, with a
specialty of developing and managing
engineering projects, urban development,
and arch. projects. .
He has developed successful product range,
own-brand and pricing strategies and worked
on projects in marketing, promotion,
customer segmentation, customer journey
and CRM.
Dr. Mohamed is widely known and connected
in local and regional market by creating
concepts, business matchmaking, and
government relationship management.
Conceptual development of food,
gastronomy and non-food formats for more
than 100 retail customers in more than 30
countries worldwide.
Dr. Sanaa is a founder of several startup
companies in the Egyptian market, and he
possess an on-hand experience to make the
projects profitable for the shareholders
benefits.
Tamer Gouda
Chief Executive
Officer
Dr. Tamer is a management consultant has
over 20 years’ experience in diversified
industries, including retail operations,
pharmaceuticals, and cement industry..
For the last 8 years, Mr. Gouda has
successfully managed a mega retail chain
with 100+ retail stores in three different
formats, generating annual turnover EGP 4
Billion, with market share of 20% in
supermarket business in Egypt.
Mr. Gouda possess a regional business
exposure within MENA region, including
starting companies, and operation
management.
2
Content
• Part- 1
✓ Introduction.
✓ FMCG Market overview and outlook.
• Part – 2
✓ Project Summary.
✓ Value Proposition.
✓ Products & Services.
✓ Business Enablers
✓ Revenue Model
• Part – 3
✓ Operational Plan
✓ Core Business Processes.
✓ Organization
✓ Locations
✓ Technology Platform
• Part – 4
✓ Financial Assumptions.
✓ Sales & Cost Assumptions.
✓ Income Statement.
✓ Balance Sheet.
✓ Cashflow Statement
ASWAQ MASR
“ASWAQ MASR mission is to help small retailers
obtain the benefits of dealing with one source for
FMCG products, originally sourced by producers and
principle suppliers, with the price and promotions
offered to help them sustain a profitable business
format based on fair price competition and organized
marketplace”.
Management Summary
FMCG – Egyptian retail market is growing despite recent challenges of COVID -19.
❑ The Egyptian FMCG market remain promising and growing
market on yearly basis. The more population is increasing,
the more FMCG industry is growing and expanding.
❑ Untapped business format opportunity clearly exist due to
unfair distribution of the Market Shares between Modern
Trade, and Traditional Format.
❑ The proposed format can easily obtain > 6% EBIT margin.
❑ Expansion strategy for this format will create appetite for
International partnership / early successful exist plan (3 – 5
Years).
❑ Technology aspects plays a very crucial role to build
successful business case.
PAGE 5
Executive Summary for Egyptian F&B Retail Market
Retil outlets in egypt
•
F&B retailing business is growing in the Egyptian & regional market,
as increasing demand for food and non-food business is growing
according to the country GDP growth (5.5% - 2019), as well as the
population growth rate (8% - 2019).
25
Sales
•
The government strategy to regulate the food retail business, and to
allow the modern trade format to capture new shares replacing the
traditional format.
•
The current ratio is 25% Modern, and 75% Traditional Market.
•
The current and previous country challenges (Covid-19, Currency
devaluation, Arab Spring) they all events proved the continues needs
and opportunities for food and grocery business.
Count 2
The current level of competencies, and past experience within the
partners, allows promising opportunity to establish a specialized
platform, with the focus in the establishment, an developing business
models that focus on digital and physical distribution to small retailers
and grocery shops.
0%
•
75
98
20%
40%
Modern Retail
60%
80%
Traditional Retail
100%
F&B
INDUSTRY OUTLOOK
L.E 760
75%
98.0%
8%
18%
Billion sales / year
Sales share for
wholesale and
non-modern trade
market
Small retailers
outlets shares of
the market
Annual growth
y-o-y
Share in household
spending
ASWAQ Target
Customers
Industry Overview
Market Characteristics
Products
Producers;
- Principles
(Pepsi, Coca,
P&G, Juhaina,
etc.).
- National
(Fine, Doha,
Edita, etc.)
Distribution
> Own
Distribution
> Outsourcing
Importers;
- Sodanco.
- Mido
- Mansour
> Wholesalers.
> Semi
wholesalers.
> Traders.
Retail
Modern Trade;
- Carrefour.
- Fathallah
- Mansour.
- Ragab’s
sons.
Informal Market
- Small retailers & Grocery
shops
- Wet markets
➢
Highly fragmented market.
➢
High growth rate (8.5%).
➢
Nearby
➢
Price sensitive market.
➢
Dominated by traditional traders & retailers
(75% of sales).
➢
No entry barriers.
➢
Competition based on offerings, pricing and
coverage strategy.
EGP1 trillion,
2024 (food & dinks).
Industry SWOT
Strengths
▪
▪
▪
▪
Egypt is becoming increasingly urbanized, supporting the
rise of modern retail formats.
With a population above 100mn in 2020, Egypt offers
one of the largest consumer bases in the region, with
huge long-term growth potential for food and drink
companies.
Egypt's organized food retail industry is expanding
rapidly and has the potential to be one of the region's
largest by value.
Close links with the Saudi Arabia and the UAE have
resulted in the proliferation of regional brands.
Weaknesses
▪
▪
▪
▪
The majority of Egyptian households, especially in rural
areas, are low-income consumers, with average
disposable income of less than USD10,000 annually.
A price-sensitive consumer base is exacerbated by wide
income inequalities. There are low levels of per capita
food consumption on an absolute basis.
Prevailing religious practices hinder alcoholic drinks
sales. The sector is also particularly prone to tax
increases.
The tariff on most imported processed food products
ranges from 20-30%, in addition to a 10% sales tax.
Industry SWOT
Opportunities
▪
▪
▪
▪
▪
▪
The retail property market is set to grow strongly, with
supermarkets, hypermarkets, department and specialty stores and
modern shopping malls transforming the retail formats available for
domestic and international retailers.
Gradually returning economic and political stability, if sustained, will
attract greater levels of investment in Egypt's food and drink
industry.
Foreign companies looking to enter the market are likely to enjoy
more success if they partner up with local/regional players.
Consumption patterns in food and drink will become more
diversified as disposable incomes rise and health consciousness gains
traction.
A large population with low incomes offers opportunities in the fastmoving consumer goods and mass retail space.
E-commerce channels within the grocery sector and food services
remain a significant avenue of growth, particularly in light of the
coronavirus crisis.
Threats
▪
▪
▪
▪
Any reforms to the food subsidy program threaten social
stability, as many households rely on it.
Competition is growing in the mass grocery retail sector, led
by major Middle Eastern players - MAF Retail (holds
franchise rights to Carrefour in the region) and Spinneys.
Little opportunity exists at the top end of the income
distribution, with the number of households earning more
than USD50,000 remaining negligibly small over our forecast
period.
The Covid-19 outbreak will limit growth in inbound arrivals
into Egypt in 2020. Tourists are the major source of
increasing consumption in the country.
ASWAQ MASR
Digital & Physical Distribution Platform
Business Name
ASWAQ MASR
Company Mission Statement
“ASWAQ MASR mission is to help target customers attain the privileges dealing with one source for 60% of their needs of
FMCG products, originally sourced by producers and principle suppliers, with the price and promotions offered to help them
sustain a profitable business format based on fair price competition and organized market place”.
Company Vision
“ASWAQ MASR plans to be the preferred provider for small size retailers in the Egyptian Market within an organized and
technological marketplace, by establishing network of 25 Distribution Centers in the country by 2025.
Target Market
ASWAQ MASR targets to penetrate the wholesale and distribution markets for small retailers, grocery shops, and
HORECA .This market is dominating more than 60% of the total FMCG sales size in Egypt.
Competitors
1. Distribution companies.
2. New e-trading platforms (Kartona, Fatora, Maxab, Capture)
3.
Wholesalers.
4. Semi wholesalers
Business Model Summary
• ASWAQ Masr, is a straightforward distribution B2B
model, that relies on technology solutions provided
to customers, and price attraction based on strong
suppliers relationship management.
• The business model doesn't compete with grocery
retailers, otherwise provides an attractive market
place for small retailers powered by the consolidated
buying from direct suppliers.
• The more quantities moving, the more discounts and
gross margin ratios improved.
• The business model is built on Low-cost Assets
Investment, where leasing and outsourcing are
business pillars. This implies on Warehouses
Acquisition, Delivery Vehicles, and Call Center
Support.
• Business model, once proved, can easily scaleup in
different regions in Egypt.
Each DC shall serve up to 200 small retailers in a catchment area
of 20 km. and up to 25 owned / franchised stores.
(Franchise)
➢
➢
➢
➢
4000 to 7000 sqm
12000 to 15000 SKUs.
Catchment area 20 km.
Pre-ordering service
➢
➢
➢
➢
➢
150 to 250 sqm
2200 to 3000 SKUs.
Catchment area 5 km.
Based on replenishment
system.
Discounted price strategy
➢
➢
➢
➢
Small to medium size
retailers.
Serving 60% of fast moving
SKUs.
Catchment area 20 km.
Pre-ordering for fast moving
categories.
ASWAQ Stores – Franchise Model
Franchise Objective
• ASWAQ Stores is a complementary project to
empower ASWAQ MASR project.
• The objective for this model, is to accelerate
the brand equity among the distribution
centers catchment area.
• Also, the Franchise model will increase the
distribution point of sales for ASWAQ MASR.
• Moreover it provide ASWAQ with a direct
reach of final customers “B2C”.
Franchisee Benefits
• Enjoy continues support by the company
trading teams.
• First access to ASWAQ Promotions.
• Delivery Priority for daily orders.
• Credit facility by the Microfinance arm
• Part of the company marketing campaigns.
Stakeholders & Value proposition
Suppliers
Macroeconomically Level

Increasing distribution network and scalability to
untapped areas.

Include the small retail business into the modern-trade
umbrella.

Reducing own distribution cost.


Enhanced cash-flow with standardized payment terms.
Bigdata hub for food trading, distribution, and strategic
stocks of commodities.

Direct promotion to consumers and retailers.

Sustain trading development initiatives at urban and rurales
cities.

Eliminating middle-man margins in trading with small
retailers and end-consumers.

Hold the small retailers into the current financial enclosure
initiative by the Central Bank of Egypt & Ministry of Finance.

Own special window in the online application.

More employment opportunities.
Stakeholders & Value proposition
Shareholders

Successful business format with approximate > 8%
NPT.

Scalable business in a growing industry and highly
populated country.

Limited competition with traditional (non-modern
wholesalers.)

Customer acceptance to new form of buying.

Governmental support to private sector investment,
and to the organization of Food Trading.
Customers

One direct supply for 60% of SKUs

Reducing inventory cost
management solutions.

Controlling ordering & delivery timing.

Access to better pricing strategy and availability of
products on demand.

Access to Microfinancing programs

Quality control for products
by
providing
category
Services offered to customers
Digital Services
• Marketplace application, installed
on tablet device, and delivered to
customers.
• Products assortment based on
fast moving items.
• Smart reporting tools to manage
own inventory and orders.
• Virtual storage space for planned
purchases.
• Planning for delivery timing.
Physical Services
Financial Services
• Consolidated buying service.
• Provide credit facility in shortterm, based on agreement
with Microfinancing
buddies.
• Nearby Distribution Center
(20 km.).
• Competitive pricing strategy
based on volume.
• Category management
service, to reduce waste and
shrinkage cost.
• Elimination for middlemen
commission.
• Elimination for middlemen
commission.
Products & Categories
Food (60%)
Average margin
(15%)
Dry Food
Non-Food (30%)
Average margin (7%)
Detergents.
Canned & Packed Products.
Frozen Food.
Office Supplies.
Homecare.
Water & Juices.
Confectionery
Stationery.
Paper Products.
Snacks.
Carbonated Drinks.
Others (10%)
Average margin
(18%)
Body Care.
Textile products.
Business Enablers
Physical Resources
Technology
• Licensed warehouse , average 5000 sqm.,
matching location selection criterion.
• Buying team, to build strong supplier-relationship,
and category management.
• Sales team, responsible for targets achievement
divided into two regions per each DC.
• Warehouse handling equipment & tools.
• Warehouse management team, responsible for
receiving, orders fulfillment, and dispatching.
• Outsourcing fleet management company, for
orders delivery.
•
•
•
•
Online Marketplace platform
500 customer tablets (Active Customers.)
Call-center support.
Online shipment tracking system , integrated with
the Marketplace.
• E-Payment platform.
• Warehouse Management System, integrated with
ERP system.
Government Support
Success Partners
•Finding key-success partners from related
disciplines.
•Technology, Communication, FMCG partners
and sponsorship for launching phase.
•Merge ASWAQ Masr into the current government financial
enclosure imitative, by CBE.
•Microfinancing system to small retailers, in term of
providing credit lines for goods purchase.
•Alignment with SMES authority to allow franchise
opportunity for youth.
REVENUE MODEL
Operational Revenue
93%
• Trading revenues generated
by sales teams in direct
contact with customers.
Other Revenues 7%
• Revenue development activities included
in suppliers contracts for the brand
support.
• Micro Finance and e-payment revenues.
• ASWAQ Franchise
• Bigdata Analytics.
• Marketplace advertisement board.
21
Operational Plan
Core Business Processes
Inventory Acquisition
Inventory Handling
• DC inventory acquisition is a result of continues
negotiations and buying contracts with product
suppliers. This process starts normally prior to the full
operation mode in a period of 3 months, and it
continues during the physical year till end. Where the
following year start with new contracts and buying
conditions.
• ASWAQ inventory represents the 90% of working
capital. Inventory handling is a crucial core business
function to ASWAQ. Inventory handling object to reduce
shrinkage, waste, and products expiry.
• The buying team is responsible to obtain best deals for
ASWAQ in terms of;
-
Volume price.
Special discounts on volume.
Delivery conditions.
National promotions.
Special promotions for ASWAQ customers.
Suppliers’ payment conditions.
• This process shall include;
-
Products Receiving.
Quality, and Quantity Checking.
Products Storage.
Storage Space Management.
Core Business Processes
Orders Fulfillment & Dispatching
Order Delivery & Collection
• Orders Fulfillment is the process of transferring online orders
received via ASWAQ system, into physical orders ready for
dispatching and delivery.
• The final process in order processing cycle is delivering orders to
designated customers via delivery contractors. The delivery orders
are automated to the system, which locate the customer location,
estimated delivery time, delivery queuing system, etc.
• This process shall include;
-
Orders preparation by dispatching team.
Packaging and labeling.
Quality and quantity checks.
Loading to delivery trucks.
• Fleet routing and delivery order releases.
• This process shall include, delivery contractor responsibility for
shipment in terms safety, quality, and quantity delivered to customer.
For the project launching phase, the delivery trucks will be
accompanied with ASWAQ team to ensure the delivery
performance.
• Revenue Collection
• Revenue collection process has two convenient method will be
done via e-payment gateway. Where customers acknowledge
receiving goods on the system (ASWAQ), accordingly the system
credit the customer balance with invoice amount. Subscribed
customers need settle due payments according to the agreed
payment terms (Cash or Credit).
Inventory & Customer Credit Policy
ASWAQ business is based on the inventory acquired from suppliers to sell to its customers. Accordingly, ASWAQ is planning to deal with
inventory very carefully, as a core success factor for the business cycle.
Inventory Turnover:
(14) Days, according to average turnover
benchmark in similar distribution channels.
Credit Policy
Inventory Value per DC;
L.E 15 Million, where the DC sales target is 30
Million per month.
2. Limited Credit Period; for the normal price distribution, retailers have limited credit policy
doesn’t exceed 7 days for the products they buy.
Special Occasion (Ramdan)
Double the inventory value with higher
turnover rate.
Suppliers Payment;
Min. 15 Days, and up to 45 Days.
Average turnover cycle;
Twice per month.
1. Cash upon Delivery; where retailers pay to suppliers or distributors on cash bases,
provided they have price advantage for the products they receive (price burned products).
3. Distributors Credit; suppliers grant credit terms for distributors and key account retailers.
This period goes up and down according to the distributor reliability and the type products
they distribute.
Normally, distributors have the privilege to trade with leveraged cash generated by the credit
limits and period between buying and selling products.
ASWAQ has to adopt similar credit policies for its customers, where no credit limits will be
granted for end customers unless fulfilling certain requirements as follow;
-
Legal identity including commercial registration / tax card.
I-Score credit report.
Bank account.
Credit survey by ASWAQ.
Operation Requirement
Distribution Center Requirements
Legal Environment
• DC location is a key success factor for ASWAQ.
Selected locations have to match some primarily
criterion;
-
-
-
Gross area of 5000 sqm.
Average net storage space 3500 sqm.
Ceiling height 9 meters.
Ventilation system.
Firefighting system.
Accessibility to ring roads.
Loading and dispatching deck.
-
Registered company for trading and distribution.
Registration with taxes and social insurance
authorities.
Licensed warehouse for Food and Non-Food
storage.
Trademark registration.
-
Fire, theft, and accidents insurance.
Organization & Management
ASWAQ will be managed via active board of directors, led by CEO selected by the board to
hold full responsibility towards milestones achievement plans, with financial and non-financial
targets.
Functional organization structure will be imposed to the ASWAQ, with active steering
committees formed to facilitate the business operations.
Company Structure
Company
Board
Commercial
Team
CEO
Sales &
Marketing
Buying
Category
Management
The following is the general overview for the functional structure;
Distribution Center
Information
Technology
Supporting
Services
General
Manager
Promotion
team
Finance
Sales
Management
HR & Admin
Ordering Team
Sales Team
Warehouse
Operations
Supporting
Service
Phase One Locations (40% of Target Market)
Distribution Center Locations
DC-6
DC-5
DC-8
DC-7
DC-3
DC-1
Regional Approach
R.1 Greater Cairo.
-
DC 1; West Cairo, serving west Giza & October.
DC 2 ; East Cairo, serving Maadi, New Cairo.
DC 3 ; North Cairo, serving Shubra, Mattarya , etc.
DC 4 ; South Cairo, Helwan, and south Giza.
DC-2
DC-4
R.2 Delta
-
DC 5 ; Tanta,
DC 6 ; Mansoura.
DC 7 ; Zagazig
DC 8 ; Menoufeya
Technology Platform
ASWAQ targets to generate a great advantage of using
technology platforms, front-end and back-end.
Types of technological solutions;
Marketplace
✓
✓
✓
✓
✓
Customers
Interface
Category
Segmented
Sending notification
Promotions
Customers
reporting.
Ordering System
✓
✓
✓
✓
✓
Good planning.
Replenishment
Suppliers ordering
GOGS analytics
Receiving &
dispatching
Delivery Interface
✓
✓
✓
✓
Goods delivery
Tracking
Goods receipts
Delivery
performance
E-Payment
✓
✓
Customer payment
Payment reporting
Microfinance
✓
Supporting
customer credit
facilitates
CRM
✓
✓
✓
✓
Customer profiling
Troubleshooting
Handling
complaints
Call center support
Goals & Milestones
Starting Phase
Phase 1
Company
Establishment
Brand Building
Technology
Platform
Launching
Services
Scaling
Business
Phase 2
1st DC, Q1 –
Y1
2nd & 3rd DCs,
Q2 – Y1
Great Cairo Delta
Phase 3
4th & 5th DCs –
Q4 –Y1
Delta Alexandria
Financial Plan
Financial Assumptions, (50 Million Invest.)
The financial assumptions provide for one business unit
Business unit is composed of head office and 5 distribution centers
•
•
•
•
The provided figures for lite assets model with 5 distribution centers.
The focus is to build the digital platform and 500 active customers for each DC.
This format can be enlarged to target 25 DCs. In 3 years.
Starting greater Cairo region, and scaling up to Delta, and Upper Egypt.
General Assumptions.
1.
2.
3.
4.
5.
6.
7.
8.
9.
Business plan covers 10 years starting from
year “0” to year “9” (conservative approach).
All numbers in Million
Paid Capital 50M in starting year.
5% legal reserve as per law.
BOD and committees expenses per year
3M.
Income tax rate 22.5%
Discount cash flow rate 16% (DCF)conservative rate
Breakeven in Y-1
Pre-operating expenses represent 1.25% of
investment cost to be covered upon business
plan approval.
Sales Assumptions.
1.
Y-1 represent establishment and starting
year.
2.
The provided figures for 5 DCs.
3.
1st DC, starting in Q1 y-1. 2nd &3rd DCs will be
started in Q2 y-1.
4.
The average sales value 30 M per month for
each DC.
5.
Other income represent adds on behalf
others and other revenue recourses was Zero
in year 1 and 2% in year 2 and 7% starting
from year 3 to year 10.
Financial Assumptions
3 - Cost Assumptions
4 - Balance Sheet Assumptions
1.
COGS represent 86.5% (90% cost - (3.5%)
discount taken).
1.
2.
Operation Expense 1M per month ( 53% labor
cost, 20% rent, 15% utilities and others).
Days on hand (Accounts receivable collection 15
days, Inventory days (keep in in store) 30 days
and Accounts Payable (Suppliers payment) 30
days).
3.
Total average S&M expenses 5% from sales
value (4% sales exp. + 1% Marketing exp).
2.
Dividend schedule is (75M in year2, 300M in
year4, 6, 8 and year 10)
4.
Total average G&A 1.2 % from sales value
5.
Provisions (bad debt, inventory and contingency)
1.25% per year.
Balance Sheet.
Balance Sheet "000,000"
Current Assets
Cash
Accounts Receivable
Other Debit balance
Inventory
Total Current Assets
Current Liabilities
Accounts Payable
Provisions (Doubtful, Inventory and Contingency)
Total Current Liabilities
Working Capital
Long Term assets
Gross Property & Equipment
Depreciation
Net Property & Equipment
Total Long Term assets
Year 0-1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
21.85
16.64
1.50
20.16
60.15
54.00
27.74
5.00
33.59
120.33
274.63
28.66
5.00
34.71
343.01
196.69
29.59
5.00
35.83
267.11
450.43
31.66
5.00
38.34
525.43
409.32
31.44
5.00
38.07
483.83
676.25
33.01
5.00
39.98
754.24
668.47
34.66
5.00
41.97
750.10
975.21
36.39
5.00
44.07
1,060.68
986.05
38.21
5.00
46.28
1,075.54
28.79
10.46
39.26
20.90
47.99
35.25
83.24
37.09
49.59
63.06
112.65
230.36
51.19
92.65
143.84
123.27
54.77
124.36
179.13
346.30
54.39
157.53
211.92
271.91
57.11
192.36
249.46
504.77
59.96
228.92
288.89
461.21
62.96
267.32
330.28
730.40
66.11
307.64
373.75
701.79
38.75
(7.28)
31.47
31.47
38.75
(14.57)
24.18
24.18
38.75
(21.85)
16.90
16.90
52.25
(29.13)
23.12
23.12
52.25
(36.42)
15.83
15.83
59.50
(43.70)
15.80
15.80
71.00
(50.98)
20.02
20.02
71.00
(58.27)
12.73
12.73
71.00
(65.55)
5.45
5.45
82.00
(72.83)
9.17
9.17
Total Investment
Shareholder's Equity
Paid up Capital
Legal Reserve
Retained Earnings
Dividend
Profit for the period
Shareholder's Equity
Long Term Liabilities
Long Term Liabilities
Total Long Term Liabilities
52.36
61.28
247.26
146.39
362.14
287.71
524.79
473.95
735.85
710.95
50.00
0.00
0.00
0.00
2.36
52.36
50.00
4.20
2.36
(75.00)
79.72
61.28
50.00
13.49
7.08
0.00
176.68
247.26
50.00
23.45
183.76
(300.00)
189.17
146.39
50.00
25.00
71.39
0.00
215.75
362.14
50.00
25.00
287.14
(300.00)
225.57
287.71
50.00
25.00
212.71
0.00
237.08
524.79
50.00
25.00
449.79
(300.00)
249.16
473.95
50.00
25.00
398.95
0.00
261.90
735.85
50.00
25.00
660.85
(300.00)
275.11
710.95
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
Total Equity & Long Liabilities
Check Point
52.36
0.00
61.28
0.00
247.26
0.00
146.39
0.00
362.14
0.00
287.71
0.00
524.79
0.00
473.95
0.00
735.85
0.00
710.95
0.00
Cashflow Statement
Cash Flow Statement "000,000"
Operating Cash Flow
Net Earnings
Depreciation & Amortization
Provisions (Doubtful, Inventory and Contingency)
Accounts Receivable
Other Debit balance
Inventory
Accounts Payable
Other Credit Balance
Year 0-1
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
2.36
7.28
10.46
(16.64)
(1.50)
(20.16)
28.79
0.00
83.91
7.28
24.78
(11.10)
(3.50)
(13.44)
19.20
0.00
185.98
7.28
27.82
(0.92)
0.00
(1.12)
1.60
0.00
199.13
7.28
29.59
(0.92)
0.00
(1.12)
1.60
0.00
215.75
7.28
31.71
(2.07)
0.00
(2.51)
3.58
0.00
225.57
7.28
33.17
0.22
0.00
0.27
(0.38)
0.00
237.08
7.28
34.83
(1.57)
0.00
(1.90)
2.72
0.00
249.16
7.28
36.57
(1.65)
0.00
(2.00)
2.86
0.00
261.90
7.28
38.40
(1.73)
0.00
(2.10)
3.00
0.00
275.11
7.28
40.32
(1.82)
0.00
(2.20)
3.15
0.00
Cash from Operations
10.60
107.14
220.63
235.56
253.74
266.13
278.44
292.22
306.75
321.83
Investing Cash Flow
Investments in Property & Equipment
Financing Cash Flow
(38.75)
(38.75)
0.00
0.00
0.00
0.00
(13.50)
(13.50)
0.00
0.00
(7.25)
(7.25)
(11.50)
(11.50)
0.00
0.00
0.00
0.00
(11.00)
(11.00)
Capital
Shareholder Credit account
Dividends
Cash from Financing
50.00
0.00
0.00
50.00
0.00
0.00
(75.00)
(75.00)
0.00
0.00
0.00
0.00
0.00
0.00
(300.00)
(300.00)
0.00
0.00
0.00
0.00
0.00
0.00
(300.00)
(300.00)
0.00
0.00
0.00
0.00
0.00
0.00
(300.00)
(300.00)
0.00
0.00
0.00
0.00
0.00
0.00
(300.00)
(300.00)
Net Cash
Opening Cash Balance
Closing Cash Balance
21.85
0.00
21.85
32.14
21.85
54.00
220.63
54.00
274.63
(77.94)
274.63
196.69
253.74
196.69
450.43
(41.12)
450.43
409.32
266.94
409.32
676.25
(7.78)
676.25
668.47
306.75
668.47
975.21
10.83
975.21
986.05
Discount Rate 16%
Discount Cash flow
21.85
46.55
204.10
126.01
248.77
194.88
277.56
236.52
297.47
259.28
Initial Investment, Year 0
FCF, Year 1
FCF, Year 2
FCF, Year 3
FCF, Year 4
FCF, Year 5
FCF, Year 6
FCF, Year 7
FCF, Year 8
FCF, Year 9
FCF, Year 10
Total
FCF
(50.00)
21.85
32.14
220.63
(77.94)
253.74
(41.12)
266.94
(7.78)
306.75
10.83
986.05
cumulative FCF
Payback period
(50.00)
(28.15)
4.00
2 Year, 3 Months
224.63
146.69
400.43
359.32
626.25
618.47
925.21
936.05
936.05
806.94
PV
(50.00)
18.84
23.89
141.35
(43.05)
120.81
(16.88)
94.45
(2.37)
80.66
2.46
420.16
NPV
362.20
IRR
102%
ROIC (Return On Invested Capital) - Total investment / Paid up capital
ROI (Return On Investment) - Net Profit / Paid up capital
Capital
Net Profit
Investment Cost
Year 1
2.36
52.36
Year 2
83.91
61.28
Year 3
185.98
247.26
Year 4
199.13
146.39
Year 5
215.75
362.14
50.00
Year 6
225.57
287.71
Year 7
237.08
524.79
Year 8
249.16
473.95
Year 9
261.90
735.85
Year 10
275.11
710.95
Total
ROI
5%
168%
372%
398%
431%
451%
474%
498%
524%
550%
ROIC
105%
123%
495%
293%
724%
575%
1050%
948%
1472%
1422%
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