Business PlanBusiness PlanIntelligent Automated Intelligent Automated

Parking - Parking - An Intelligent Carpark An Intelligent Carpark Management InitiativeManagement Initiative

ObjectivesObjectives

Industry Specialist

Target sales of $10 million in ten years’ time and 30-40% in gross margins

Local market share in first 5 years

Regional and global markets beyond 5 years

The Product: The Product: Intelligent Automated

Parking Sophisticated Carpark Management Systems more convenient payment mechanism novel traffic layout

Advanced Electronic Road Pricing (ERP) Technology

Dedicated Short Range Communications (DSRC) System

Patent proprietary expertise and model

The IAP ProcessThe IAP ProcessCentral

ManagementStation

Vehicle

Vehicle

Exit

Entrance

CentralisedStation

MountedCamera

OpticalSensor

Detector

Gantry

GantryProximity

Reader

Barrier

Vehicle

Competitive Competitive AdvantagesAdvantages

Customized carpark management system catered to needs of specific customers

Clearly defined target market

Value for money proposition:- assurance of quality of IAP technology- excellence in provision of after-sales service

Critical Success Factors:

Competitive Competitive AdvantagesAdvantages

Highly probable positive feedback of IAP system from motorists due to:- convenience & time-saving- widely accepted existing technology of

ERP gantry system added incentive to carpark owners to

implement system

Industry AnalysisIndustry Analysis Commercial carparks

- 150,000 lots- $150 million potential revenue

View to expand into public carparks - over 600,000 lots

- $400 million potential revenue

Industry Participants: - Carpark operators, government bodies, engineering companies and IT solutions providers

Main CompetitorsMain Competitors Stratech Systems - SmartPark

ST Electronics – Autoparc ST 8300

Sanyo Trading Company

Siemens Advanced Engineering

CET Technologies

Market AnalysisMarket Analysis Market Growth

- Increase in car ownership- Current implementation of cashless parking

Market Segmentation - size and ownership

- more justified in large-scale carparks

Marketing StrategyMarketing Strategy Positioning Statement

- market niche player

Pricing Strategy- cost-plus pricing strategy based on:

(a) variable costs of IAP equipment (b) salaries of engineers (c) subcontracting costs - gross margin of 30%

Marketing StrategyMarketing Strategy Promotion Strategy

- minimal advertising expenditure - personalised selling of product

Marketing Program- printing of catalogues & brochures on IAP process- internet website, yellow pages- prototype modelling for demonstrations

Financial Matters Financial Matters (a) Required funding - S$1 million Subscribe for 400,000 shares of $2.50 each or 40% stake

Uses of funds:- Develop IAP prototype

- Purchase of fixed assets- Payment of engineers’ salaries- Payment of subcontracting costs- Purchase of IAP equipment supplies for contracts

Financial Matters Financial Matters (b) Breakeven Analysis Expect to be in the black by end of 2nd year

Year 1 Year 2 Year 3 Year 4 Year 5Revenue 352,000 1,055,000 1,427,000 1,666,000 2,150,000Less: COGS 246,000 738,000 998,400 1,138,400 1,488,000 Operating expenses 229,000 132,000 150,000 169,200 171,600

Profits/(Losses) before tax (121,000) 195,000 305,600 410,400 580,400

Profits/(Losses) after tax (121,000) 146,250 229,200 307,800 435,300Retained profits/(Losses) b/f - (121,000) 25,250 134,450 202,250 (121,000) 25,250 254,450 442,250 637,550Less: Dividends - - (120,000) (240,000) (300,000)Retained profits/(Losses) c/f (121,000) 25,250 134,450 202,250 337,550

Financial Matters Financial Matters Sales & Profit Trends

-500,000

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

Year 1 Year 2 Year 3 Year 4 Year 5

Sales Profit before tax

Financial Matters Financial Matters (c) Ratio Analysis

Operating ratiosAverage collection period (days) 59.8 73.0 73.1 72.9 73.0Net sales to total assets ratioNet sales to total assets ratio 0.40 0.40 0.99 0.99 1.09 1.09 1.11 1.11 1.26 1.26Net sales to working capital ratioNet sales to working capital ratio 0.46 0.46 1.12 1.12 1.34 1.34 1.46 1.46 1.67 1.67

Year 1 Year 2 Year 3 Year 4 Year 5 Liquidity ratiosCurrent ratio N/A 20.43 6.51 4.43 4.01 Quick ratio N/A 15.77 5.04 3.71 3.40

Profitability ratiosNet profit margin (0.34) 0.18 0.21 0.24 0.26Return on equity (0.14) 0.14 0.20 0.26 0.33Return on total assets (0.14) 0.14 0.17 0.20 0.24

Financial Matters Financial Matters (d) Financial Returns

Year 3 Year 4 Year 5 Year 6 FoundersShare of dividends - 72,000 153,600 216,000 Less: Cashout option - - (75,000) (100,000)

Contribution to investors - (54,000) (42,000) (60,000)

InvestorsShare of dividends - 48,000 86,400 84,000Add: Contribution from founders - - 54,000 54,000 42,000 42,000 60,000 60,000 Dividends from investmentDividends from investment - - 102,000102,000 128,400128,400 144,000 144,000 Investment base 1,000,000 900,000 700,000Return (%) 10.2 14.3 20.6

Cashout option:Founders’ share of dividends - - 75,000 100,000 Cash 100,000 200,000 200,000 200,000 100,000 200,000 275,000 300,000

Financial Matters Financial Matters (d) Financial Returns

Year 3 Year 4 Year 5 Year 6 Share buyback (no. of shares) 40,000 80,000 110,000 120,000 Share capital composition: Founders 640,000 720,000 830,000 950,000Investors 360,000 280,000 170,000 50,000

By end of year 6, founders would have returned 87.5% (or $875,000) of investors’ monies equivalent to 350,000 shares.

Thank You Thank You

For For

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