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Business Plan 2016


- Notice The information presented in this document is highly sensitive and confidential and is to be used by authorized parties for the purpose of determining a preliminary indication of interest in Rose Creams. (“the Company�). The recipient of the Business Plan agrees by its receipt not to reproduce, duplicate, or reveal, in whole or in part, information presented herein without the written permission of the Company. The information contained in the Business Plan was provided by the Company and other sources. It has been reviewed, approved, and released by the Company, who assumes responsibility for its contents. Estimates and projections contained herein have been prepared by the management of the Company, involve significant elements of subjective judgment and analysis, and are based on certain assumptions. Actual results may vary from estimates and projections and these variations may be material. No representation or warranty, expressed or implied, is made as to the accuracy or completeness of the information contained in this overview, and nothing contained herein is, or shall be relied upon as, a promise or representation, whether as to the past or the future. The Business Plan does not purport to contain all of the information that may be required to fully evaluate the Company for a potential business relationship, and any recipient thereof should conduct its own independent analysis and due diligence process. THIS PRESENTATION IS FOR INFORMATION PURPOSES ONLY AND DOES NOT CONSTITUTE AN OFFER TO SELL OR SOLICITATION OF AN OFFER TO BUY ANY SECURITY.

For additional information, contact: Frank Evanshen 1130 230 W Pender St Vancouver BC (604) 257-3660 x102 (604) 818-7833 frankrevanshen@gmail.com www.rosecreams.com Business Plan prepared by:

Concord Business Development Inc. 500 - 666 Burrard Street Bentall Centre Vancouver, BC V6C 3P6 Canada Tel: (604) 689-2556 Fax: (604) 689-7758 Website: www.concordbusiness.com

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Business Plan Highlights Name of Company Business Industry Place of Business Products

Rose Creams Skincare Cosmetic cream manufacturing Cosmetic creams - NAICS Code 32562 Vancouver, BC, Canada. Innovative skincare creams to help alleviate skin ailments and provide moisturizing and anti-aging qualities. Benefits Alternative to corticosteroid creams typically prescribed to those with skin conditions such as psoriasis. Target Market - Global Cosmetic Manufacturing Market - $276 Billion in 2016 1 - US Cosmetics Market – US$121 billion in 2016 to $154billion by 2021. - Europe and the US are the biggest markets of the industry, accounting for over 50% of global skin care sales. - e-Commerce sales of beauty aids generated 18,87billion USD in revenue in 2014 0F0F

Business Plan Funds Required

To become a prominent leader in the skincare industry. $1,000,000

Revenue Projections Yr 1: $75,233; Yr 2: $1,318,151; Yr 3: $3,204,367; Yr 4: $6,980,579; Yr 5: $18,838,607

1

IBIS World, the Global Cosmetics Manufacturing Industry, March 2013.


Table of Contents 1

EXECUTIVE SUMMARY .................................................................................................................................. 1 1.1 1.2 1.3 1.4

2

COMPANY OVERVIEW .................................................................................................................................. 4 2.1 2.2 2.3

3

GLOBAL MARKETS...........................................................................................................................................7 CANADIAN MARKET ........................................................................................................................................7 TRENDS.........................................................................................................................................................8 Anti-Aging ..............................................................................................................................................8 Multi-functional Products ......................................................................................................................9 ONLINE SALES ................................................................................................................................................9 DEMOGRAPHICS .............................................................................................................................................9

MARKETING ................................................................................................................................................ 11 5.1 5.2 5.3 5.4 5.4.1 5.4.2 5.4.3 5.5

6

DISTRIBUTION ................................................................................................................................................5 PSORIASIS......................................................................................................................................................6

MARKET ANALYSIS SUMMARY ..................................................................................................................... 7 4.1 4.2 4.3 4.3.1 4.3.2 4.4 4.5

5

CORPORATE DATA...........................................................................................................................................4 INITIAL INTEREST .............................................................................................................................................4 FRANK EVANSHEN, FOUNDER, PRESIDENT & CEO.................................................................................................4

PRODUCTS .................................................................................................................................................... 5 3.1 3.2

4

THE STORY ....................................................................................................................................................1 THE MISSION .................................................................................................................................................2 ROLL-OUT STRATEGY.......................................................................................................................................2 USE OF PROCEEDS...........................................................................................................................................3

BRANDING STRATEGY ....................................................................................................................................11 COLLATERAL MATERIALS ................................................................................................................................12 TRADE SHOWS .............................................................................................................................................12 WEBSITE STRATEGY .......................................................................................................................................13 Increase Visibility .................................................................................................................................13 Increase Clickability..............................................................................................................................13 Increase Convertability ........................................................................................................................13 SOCIAL MEDIA .............................................................................................................................................13

FINANCIAL PROJECTIONS ............................................................................................................................ 14 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9

ASSUMPTIONS ..............................................................................................................................................14 FUNDS REQUIRED AND USE OF PROCEEDS .........................................................................................................15 REVENUE SUMMARY – 5 YEAR ........................................................................................................................16 INCOME STATEMENT .....................................................................................................................................17 PROFITABILITY & ROI ....................................................................................................................................18 CASH FLOW .................................................................................................................................................19 BALANCE SHEET............................................................................................................................................20 BENCHMARKS & BREAK EVEN ANALYSIS ............................................................................................................21 RATIO ANALYSIS ...........................................................................................................................................22


1

Executive Summary

Rose Creams is a concept company created by Frank Evanshen, the current president and CEO of MCC Meridian Capital Corporation. Mr. Evanshen has gained extensive experience in raising capital for private and public ventures and been a venture capitalist for over 25 years. Rose Creams was conceived when the last sample of a unique cream skin cream created by his father was discovered. His father had created the cream to help cure psoriasis and hydrate the skin. When Frank realized how revolutionary and innovative the cream was, he knew he had to introduce this remarkable product to the global market.

1.1

The Story

When Frank’s father noticed his children were suffering from acne and psoriasis, he knew he needed to do something to help. During these times, it was not possible to simply go to the store or the doctor’s office to pick something up, so he decided to create a solution base product to help alleviate his children’s symptoms. After some trial and error, using natural ingredients found around his home, he developed a skin cream that did wonders for his children’s skin conditions. While looking through old family possessions, Frank’s family stumbled upon a sealed bottle of their father’s revolutionary skin product, which had not been opened for over 60 years. Rose Creams now aims to introduce this innovative and game-changing skin care cream to the global market to help those suffering from painful skin conditions. This product will allow consumers the option to choose a more natural product compared to topical steroid drugs that are usually prescribed for psoriasis skin conditions.

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1.2

The Mission

The company’s mission is to bring innovative new skin care products that will help those with ailments such as psoriasis. Rose Creams aims to give options to consumers who wish to use alternatives to unsafe corticosteroid creams. The company plans to continue the development of new products as demand rises. Rose Creams will eventually widen their distribution channel and introduce its products to the global market.

1.3

Roll-Out Strategy

Rose Creams will roll-out their business plan in two phases. Funds Required Phase 1

Phase 2

2

$1,000,000

$5,000,000

Strategy  

Begin with developing base product Expand into US market

Develop new products as demand increases Expand into new markets as revenues dictate


1.4

Use of Proceeds

Rose Creams requires an initial investment of $1,000,000. Proceeds will be spent in the following ways:

Capital Requirement Rose Creams Technology & Inventory R&D Engineering Design Prototype Manufacturing & Production Inventory Subtotal Advertising Costs Marketing Expenditures Brand Development Subtotal Office & Admin Sales Adminstrattive Support Subtotal Total

$ $ $ $ $ $

100,000 30,000 30,000 30,000 500,000 690,000

$ $ $

100,000 50,000 150,000

$ $ $

60,000 100,000 160,000 $1,000,000

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2 2.1

Company Overview Corporate Data Rose Creams Name of Incorporation Date of Incorporation

1999

Place of Incorporation

Vancouver, BC Canada

Operating Address

Telephone Web Site Legal Accounting

2.2

Meridian Mercantile Inc.

#230-1130 West Pender Street Vancouver, BC 604-257-3660 #102 www.rosecreams.com Farris Morgan & Company

Initial interest

Rose Creams has had communications with Johnson & Johnson, a Fortune 500 company. Mr. Frank Evanshen wrote to Johnson & Johnson regarding Rose Creams’ story and stating how the company’s creams will be revolutionary for those seeking products to help their skin ailments, along with multifunctional products to help with overall skin health. Johnson & Johnson’s top global managers responded, stating that they were intrigued by the idea and showed interest in Rose Creams’ project and innovative formula.

2.3

Frank Evanshen, Founder, President & CEO

As President and CEO of MCC Meridian Capital Corporation, Frank Evanshen brings over 25 years of extensive experience raising capital for private and public ventures. During his career, Mr. Evanshen has founded several companies that he has taken public, and has incorporated various innovative ideas within his companies, such as revolutionizing the delivery order system in his chain of 17 pizza restaurants. Instead of having a separate phone number for each store, he found that using a single number for all chains made it easier for his customers to order from his shops. Over the years Mr. Evanshen has supported several start-up companies and established publicly held energy businesses like Kappy Resources and Seguro Resources. His entire career is characterized by diligence and hard work, and his previous experience in building companies will be an invaluable asset to Rose Creams.

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3

Products

The company will offer skin care products and skin ailment cures. Rose Creams’ signature product will make use of a 60 year old formula that has shown to improve psoriasis and acne. The company will focus on multifunctional products that are able to serve multiple purposes, such as anti-aging and moisturizing. Current trends show increased demand for such products.

3.1

Distribution

The mode of sale segment is comprised of retail and online sales, where the retail mode of sale is further classified into general departmental store, supermarkets, drug stores and brand outlets. Customers prefer the retail mode of sale for buying cosmetic products, whereas, the purchase of cosmetic products, online, is observed to be a rising trend among customers. Skincare Distribution Channels by % of Market Share

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3.2

Psoriasis

Psoriasis is a skin condition where the life cycle of skin cells is greatly accelerated, causing them to build up rapidly on the skin surface. Extra skin cells form thick, silvery scales and itchy, dry red patches that can be painful. Psoriasis is a long-last disease and the goal of treatment is to stop the skin cells from growing quickly. Psoriasis affects approximately 3% of the world’s population and over 9 million people in the US. The global market size of treatments is $8 billion and makes up 34% of all dermatological drug sales. Corticosteroid creams are typically prescribed to patients with psoriasis, however their side effects are concerning when used long-term and the creams are ineffective for those with severe cases2. Since the long-term safety of corticosteroid creams are unknown, there is still a market for safer and more effective treatments. Rose Creams offers a more natural and effective alternative to those suffering from psoriasis.

2

http://www.brickellbio.com/psoriasis.html

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4 4.1

Market Analysis Summary Global Markets

The global cosmetic manufacturing market is valued at $276 billion with an annual growth of 3.2%. The global skin care market is currently estimated around 121 billion USD and is expected to rise to 154 billion by 2021. In 2015, skin care products made up 36.1% of the global cosmetic market. Skin care will remain beauty’s biggest category adding some US$20.1 billion to its value over 2014- 2019. The skin care industry includes the following3:

Facial Care Body Care Hand Care Depilatories Makeup Removal Products Johnson & Johnson Consumer Products Inc. led the skin care market in 2015 with a 10% value share. Neutrogena, one of the company’s mass skin care brands, led a 4% value sales increase4.

4.2

Canadian Market

In Canada, the sales of skin care products increased by 9% in 2015, up by 8% in 2014. Skin care growth was also valued at 4% and reached $2 billion CAD. Canada’s aging population boosted the development and sale of anti-aging products, which helped to increase overall revenue. L’Oreal led the skin care market in 2015 with a value share of 18%. A value CAGR of 3% is forecasted within the upcoming year5.

3

Statista Euromonitor 5 Euromonitor 4

7


4.3

Trends

4.3.1 Anti-Aging The importance of anti-aging skin care is increased for those in their late 20s to early 30s. Not only is targeting wrinkles important, but also focusing on dry skin, uneven skin tone, hyperpigmentation, and dark under-eye circles. 39% of women 25-34 years old in the US stated that they found anti-aging skin care very important in their daily routine.

Percentage of US Women who stated the Importance of Anti-Aging Skin Care 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 25-34

18-24

Percentage of US Women who stated the Importance of Anti-Aging Skin Care The sales for anti-aging products in the US were over $2 billion in 2015. The top anti-aging brand, Olay Regenerist Micro-Sculpting, reached a revenue of $88.7 million USD.

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4.3.2 Multi-functional Products Multifunctional products are increasing in demand for those who do not have a high expendable income. These products are able to target multiple problems with a single cost to the consumer. Many users also noted that using a single product was simpler and saved time6.

Reasons Consumers Prefer Multifunctional Products 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Simplicity

Better Value

Saves Time

Reasons Consumers Prefer Multifunctional Products

4.4

Online Sales

In 2014, the value of e-commerce sales of pharmaceuticals and beauty aids was 18.87 billion USD, up from 14.6 billion USD in 2012. About 8%, or 260 million USD worth, of all retail sales in the US are represented by e-commerce sales. As a result of mobile computers and devices being readily available, online sales are on a rise globally. The compound annual growth rate from 2012 to 2017 for online revenues of health and beauty is expected to be 14.2%. The share of health and personal care sales is expected to account for 5.7% of total retail ecommerce sales in the US. Many people also turn to the internet not just to purchase health and beauty products, but to seek medical advice and to look alternatives to standard medications7.

4.5

Demographics

Rose Creams will be marketed to both men and women of all ages. Although middle-aged women previously dominated the skin care market, particularly with products promising anti-aging effects, more people are beginning to realize the benefits of skin care. Young people are now discovering the value of taking care of their skin for preventative purposes, and more people are conscious of the importance of 6 7

Global Cosmetics Industry Statista

9


following a skin care regime. New studies every year show the negative effects of not taking care of one’s skin, and as a result more people are actively finding new ways of keeping their skin healthy. Rose Creams’ primary demographic is those suffering from skin ailments such as psoriasis and acne. In a study done in 2012 with college students, 36.7% reported using acne products daily, and 59.9% used daily facial moisturizers.

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5

Marketing

The mode of sale segment is comprised of retail and online sales, where the retail mode of sale is further classified into general departmental store, supermarkets, drug stores and brand outlets. Customers prefer the retail mode of sale for buying cosmetic products, whereas, the purchase of cosmetic products, online, is observed to be a rising trend among customers. The company will focus heavily on online marketing strategies with their website and social media as well as offline strategies such as attending skin care related trade shows and offering branded collateral materials and samples for sales support.

5.1

Branding Strategy

As competition creates infinite choices, companies look for ways to connect emotionally with customers, become irreplaceable, and create lifelong relationships. A strong brand stands out in a densely crowded marketplace. People fall in love with brands, trust them, and believe in their superiority. How a brand is perceived affects its success, regardless of whether it’s a start-up, a nonprofit, or a product. Rose Creams will work with the top names in the industry to generate a brand, image and story about its products and development. They will continue to create and consult to Rose Cream as the company builds its brand equity and awareness.

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5.2

Collateral Materials

The Company will prepare of high quality collateral materials that will reinforce its brand as well as detail individual products. These print materials will be informative and in the language of each target market. Brochures and marketing literature will be posted to specific customers. Brochures will be of the highest quality and will display the complete range of products. Considerable thought will go into developing these important documents as a frontline information piece for products. Some of these materials will be:        

Brochures for consumers Brochures for the reps Look Book Brochures to the trade Collateral materials for consumers Unique and attractive packaging including bags and boxes and wrap Regulation labeling Tradeshow materials Example of Branded Collateral Materials

5.3

Trade Shows

The company will attend various cosmetic and skin care related trade shows such as the ABA Beauty Show and Esthetique Spa International in Canada and America’s Beauty Show, HBA Global, Cosmoprof, and IECSC in the United States.

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5.4

Website Strategy

The company will largely focus on its web marketing, using an UXi powered website and focusing on being at the top of search engines. There are three important strategies Rose Creams aims to increase with its e-Commerce website marketing: visibility, clickability, and convertibility.

5.4.1 Increase Visibility Being highly visible on the first page of a search for Rose Cream’s top keywords is important to its success. Dominating the first page will make sure the company is not losing sales to its competitors. To increase visibility, Rose Creams will be in the top spots of a search engine when a prospective customer inputs the company’s key words. Key words will include psoriasis, anti-aging, and skin protection.

5.4.2 Increase Clickability Using attractive wording and advertising will motivate prospects to click on the company’s link instead of their competition. Creating eye-catching advertisements is key to gaining web customers.

5.4.3 Increase Convertability The goal of the company’s e-Commerce marketing program is converting website visitors into customers at the highest possible rate. About 97% of all users leave a website without converting. These prospects are then entered into the Retargeting Ads Campaign, which means the user will now see Rose Creams banner ads on other sites they visit. Retargeting ads keep the Rose Creams brand in front of visitors after their initial visit, and eventually converts them into consumers when they are ready.

5.5

Social Media

Rose Creams will have pages on various social media sites such as Facebook and Instagram. This will help the company to share its products on highly viewed mediums and will allow Rose Creams to have closer contact with its clients to address any questions or concerns. The company will show pictures of before and after product use to entice prospective customers. Rose Creams will also sponsor highly followed accounts on Instagram to showcase their product to a greater audience.

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6 6.1

Financial Projections Assumptions Revenue Assumptions

Total Sales Cost of Goods Sold Direct Labor Manufacturing Cost Total Cost of Goods Sold Gross Margin

$ $ $ $ $

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 1,500,037 $ 5,010,124 $ 10,020,247 $ 20,040,494 $ 50,101,236 150,000 459,195 609,195 890,842

$ 225,000 $ 1,533,711 $ 1,758,711 $ 3,251,412

$ $ $ $

360,000 3,067,423 3,427,423 6,592,825

$ 612,000 $ 6,134,845 $ 6,746,845 $ 13,293,649

$ 1,101,600 $ 15,337,113 $ 16,438,713 $ 33,662,523

Ongoing Business Expenses Expenses Marketing Travel Management Salaries Administrative Salaries Benefits Rent Insurance Utilities Sotfware Dev & Maint. Total Depreciation Total Operating Costs

FY 2017 FY 2018 $ 150,000 $ 600,000 $ 10,000 $ 30,000 $ 290,000 $ 348,000 $ 42,000 $ 50,400 $ 30,366 $ 36,439 $ 100,000 $ 100,000 $ 30,000 $ 30,000 $ 35,000 $ 52,500 $ 50,000 $ 75,000 $ 23,000 $ 23,000 $ 760,366 $ 1,345,339 $

FY 2019 $ 1,002,000 $ 54,000 $ 417,600 $ 60,480 $ 43,727 $ 150,000 $ 50,100 $ 78,750 $ 112,500 $ 23,000 1,992,157 $

FY 2020 $ 2,004,000 $ 108,000 $ 501,120 $ 72,576 $ 52,472 $ 200,250 $ 50,100 $ 118,125 $ 168,750 $ 23,000 3,298,393 $

FY 2021 $ 5,010,000 $ 162,000 $ 601,344 $ 87,091 $ 62,967 $ 250,313 $ 100,200 $ 177,188 $ 253,125 $ 23,000 6,727,227

Other/General Assumptions Corporate Tax Rate Days in Receivable Amount Days in Payable Amount Inventory Purchase Dividends Paid

14

FY 2017

FY 2018

FY 2019

FY 2020

FY 2021

30.00% 30 $ 450,011 30 $38,018

30.00% 30 $1,503,037 30 $67,267

30.00% 30 $ 3,006,074 30 $99,608

30.00% 30 $ 6,012,148 30 $164,920

30.00% 30 $ 15,030,371 30 $336,361


6.2

Funds Required and Use of Proceeds Rose Creams Startup Expenses

Financing Structure Phase 1 Financing FINANCIAL HIGHLIGHTS Fiscal Year Ends: Tax rate

$1,000,000 31-Dec 30.00%

Capital Requirement Rose Creams Technology & Inventory R&D Engineering Design Prototype Manufacturing & Production Inventory Subtotal Advertising Costs Marketing Expenditures Brand Development Subtotal Office & Admin Sales Adminstrattive Support Subtotal Total

$ $ $ $ $ $

100,000 30,000 30,000 30,000 500,000 690,000

$ $ $

100,000 50,000 150,000

$ $ $

60,000 100,000 160,000 $1,000,000

15


6.3

Revenue Summary – 5 Year Revenue Summary

Total Revenues Total COGS Operating Expenses Operating Income

FY 2017 $ 1,500,037 $ 609,195 $ 760,366 $ 130,476

Chart – Revenues & Operating Income

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$ $ $ $

FY 2018 5,010,124 1,758,711 1,345,339 1,906,073

FY 2019 $ 10,020,247 $ 3,427,423 $ 1,992,157 $ 4,600,668

FY 2020 $ 20,040,494 $ 6,746,845 $ 3,298,393 $ 9,995,256

FY 2021 $ 50,101,236 $ 16,438,713 $ 6,727,227 $ 26,935,296


6.4

Income Statement Income Statement Revenues

Total Revenues Total Cost of Goods Sold Gross Profit OPERATING EXPENSES Marketing Travel Management Salaries Administrative Salaries Benefits Rent Insurance Utilities Sotfware Dev & Maint. Total Depreciation Total Operating Expenses Operating Income / (Loss) Depreciation Pre-tax Income / (Loss) Provision for Income Tax Net Income

$ $ $ $

FY 2017 1,500,037 1,500,037 609,195 890,842

$ $ $ $ $ $ $ $ $ $ $ $

150,000 10,000 290,000 42,000 30,366 100,000 30,000 35,000 50,000 23,000 760,366 130,476

$ 600,000 $ 30,000 $ 348,000 $ 50,400 $ 36,439 $ 100,000 $ 30,000 $ 52,500 $ 75,000 $ 23,000 $ 1,345,339 $ 1,906,073

$ $ $ $ $ $ $ $ $ $ $ $

1,002,000 $ 54,000 $ 417,600 $ 60,480 $ 43,727 $ 150,000 $ 50,100 $ 78,750 $ 112,500 $ 23,000 $ 1,992,157 $ 4,600,668 $

2,004,000 $ 5,010,000 108,000 $ 162,000 501,120 $ 601,344 72,576 $ 87,091 52,472 $ 62,967 200,250 $ 250,313 50,100 $ 100,200 118,125 $ 177,188 168,750 $ 253,125 23,000 $ 23,000 3,298,393 $ 6,727,227 9,995,256 $ 26,935,296

$ $ $ $

23,000 107,476 32,243 75,233

$ 23,000 $ $ 1,883,073 $ $ 564,922 $ $ 1,318,151 $

23,000 $ 4,577,668 $ 1,373,300 $ 3,204,367 $

23,000 $ 23,000 9,972,256 $ 26,912,296 2,991,677 $ 8,073,689 6,980,579 $ 18,838,607

$ $ $ $

FY 2018 5,010,124 5,010,124 1,758,711 3,251,412

FY 2019 FY 2020 $ 10,020,247 $ 20,040,494 $ 10,020,247 $ 20,040,494 $ 3,427,423 $ 6,746,845 $ 6,592,825 $ 13,293,649

$ $ $ $

FY 2021 50,101,236 50,101,236 16,438,713 33,662,523

Chart: Gross Revenues & Net Income

17


6.5

Profitability & ROI Profitability and ROI Revenue Gross Margin Gross Margin (%) Net Income Net Profit Margin (%) Initial Investment 5-Year ROI 5-Year Annualized ROI

Chart: 5 Year ROI

18

FY 2017 $ 1,500,037 $ 890,842 59%

FY 2018 $ 5,010,124 $ 3,251,412 65%

FY 2019 $ 10,020,247 $ 6,592,825 66%

$

$ 1,318,151 26%

$

75,233 5%

$ 1,000,000 8% 98%

132%

$ $

FY 2020 20,040,494 13,293,649 66%

FY 2021 $ 50,101,236 $ 33,662,523 67%

3,204,367 $ 32%

6,980,579 35%

$ 18,838,607 38%

320%

698%

1884%


6.6

Cash Flow

Cash Flow Statement FY 2017 OPERATING ACTIVITIES: Net Income Deprecitation Subtotal Changes in work ing capital: Accounts Receivables Accounts Payables Increase in Inventory Subtotal OPERATING CASHFLOW Capital Expenditures NET CASH CASH FROM FINANCING Anticipated Financing TOTAL FINANCING YEAR END CASH

$ $ $

FY 2018

FY 2019

FY 2020

FY 2021

75,233 $ 1,318,151 $ 3,204,367 $ 6,980,579 $ 18,838,607 23,000 $ 23,000 $ 23,000 $ 23,000 $ 23,000 98,233 $ 1,341,151 $ 3,227,367 $ 7,003,579 $ 18,861,607

$ $ $ $ $

(450,011) 38,018 (411,993) (313,760)

$ (1,503,037) $ (3,006,074) $ (6,012,148) $ (15,030,371) $ 67,267 $ 99,608 $ 164,920 $ 336,361 $ $ $ $ $ (1,435,770) $ (2,906,466) $ (5,847,229) $ (14,694,009) $ (94,619) $ 320,901 $ 1,156,350 $ 4,167,598

$

(313,760) $

(94,619) $

320,901 $ 1,156,350 $ 4,167,598

$ 1,000,000 $ 1,000,000 $ $ 686,240 $

$ (94,619) $

$ $ 320,901 $ 1,156,350 $ 4,167,598

Chart: Cash Flow Overview

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6.7

Balance Sheet Balance Sheet FY 2017

FY 2018

FY 2019

FY 2020

FY 2021

$ 1,156,350 $ 6,012,148 $ 7,168,499

$ 4,167,598 $ 15,030,371 $ 19,197,968

ASSETS Current Assets Cash Accounts Receivable Total Current Assets Fixed Assets Depreciation Total Current Assets TOTAL ASSETS

$ $ $

686,240 450,011 1,136,252

$ (94,619) $ 320,901 $ 1,503,037 $ 3,006,074 $ 1,408,418 $ 3,326,975

$ $ $

23,000 $ 23,000 $ 23,000 $ 23,000 $ 23,000 (23,000) $ (23,000) $ (23,000) $ (23,000) $ (23,000) 1,113,252 $ 1,385,418 $ 3,303,975 $ 7,145,499 $ 19,174,968

$ $ $ $

38,018 38,018 1,000,000 1,038,018

$ $

75,233 75,233

$ 1,318,151 $ 1,318,151

$ 3,204,367 $ 3,204,367

$ 6,980,579 $ 6,980,579

$ 18,838,607 $ 18,838,607

$

1,113,252

$ 1,385,418

$ 3,303,975

$ 7,145,499

$ 19,174,968

LIABILITIES

Current Liabilities Accounts Payable Total Current Liabilities Long Term Debt (Financing) TOTAL LIABILITIES SHAREHOLDER'S EQUITY Retained Earnings TOTAL SHAREHOLDER EQUITY TOTAL LIABILITIES & EQUITY

Chart: Balance Sheet Overview

20

$ $ $ $

67,267 67,267 67,267

$ $ $ $

99,608 99,608 99,608

$ $ $ $

164,920 164,920 164,920

$ $ $ $

336,361 336,361 336,361


6.8

Benchmarks & Break Even Analysis Benchmarks & Break Even Analysis

Operating Expenses Cost of Goods Sold Total Costs

FY 2017 $ 760,366 $ 609,195 $ 1,369,561

FY 2018 $ 1,345,339 $ 1,758,711 $ 3,104,051

$ $ $

FY 2019 1,992,157 3,427,423 5,419,580

FY 2020 $ 3,298,393 $ 6,746,845 $ 10,045,239

FY 2021 $ 6,727,227 $ 16,438,713 $ 23,165,940

$ $ $

Average 2,824,697 5,796,177 8,620,874

Revenue Gross Profit EBT Break Even

$ 1,500,037 $ 890,842 $ 130,476 $ 1,280,336

$ $ $ $

$ 10,020,247 $ 6,592,825 $ 4,600,668 $ 3,027,823

$ 20,040,494 $ 13,293,649 $ 9,995,256 $ 4,972,407

$ $ $ $

$ $ $ $

17,334,428 11,538,250 8,713,554 4,273,200

5,010,124 3,251,412 1,906,073 2,073,042

50,101,236 33,662,523 26,935,296 10,012,393

Chart: Break Even Analysis

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6.9

Ratio Analysis Ratio Analysis Rose Creams FY 2018 FY 2019 FY 2020 FY 2021 Liquidity Ratios $ 1,098,233 $ 1,341,151 $ 3,227,367 $ 7,003,579 $ 18,861,607 2989% 2094% 3340% 4347% 5708% Profitability Ratios 5.02% 26.31% 31.98% 34.83% 37.60% 6.76% 95.14% 96.99% 97.69% 98.25% 8.70% 38.04% 45.91% 49.88% 53.76% 100.00% 100.00% 100.00% 100.00% 100.00% 59.39% 64.90% 65.80% 66.33% 67.19% Financial Leverage Ratios 93.24% 4.86% 3.01% 2.31% 1.75% 93.00% 0.00% 0.00% 0.00% 0.00% 1379.73% 5.10% 3.11% 2.36% 1.79% 94.52% 5.02% 3.09% 2.35% 1.78% Efficiency Ratios 2.19 -52.95 31.23 17.33 12.02 1.35 3.62 3.03 2.80 2.61 FY 2017

Working Capital Current Ratio Net Profit Margin Return On Assets (ROA) Operating Income Margin Return On Equity Gross Profit Margin Debts To Assets Capitalization Debt To Equity Debt To Working Capital Cash Turnover Sales To Assets Fixed Asset Turnover

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Rose Creams Business Plan