L9PP3_FabBox

FabBox

FabBox / Company ABN: 389 4284 5309 ACN: 488 933 283 23 Sydney Road Richmond VIC 3121 Date Established: 1st July 2016

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CONTENTS

FabBox

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OWNERS

WHO WHOWE WEARE ARE

WHO WE ARE

DIRECTOR DIRECTOR PARTNER PARTNER / STUDIO / STUDIO MANAGER MANAGER GIOVANNI GIOVANNI GUNAWAN GUNAWAN MUHAMMAD MUHAMMAD ZHARIF ZHARIF RAFIQ RAFIQ BIN BIN ROZLAN ROZLAN Pei Ern Ho Muhammad Zharif Rafiq Bin Danica Yee

Rozlan

PARTNER PARTNER / M/ MI HAO MI HAO CHUA CHU

Mi Mi Hao Hao comp com Giovanni Giovanni completed completed hishis Bachelor Bachelor Zharif Zharif completed completed hishis Bachelor Bachelor Masters Masters in Arc in and and Masters Masters in Architecture in Architecture at at andand Masters Masters in Architecture in Architecture at at Melbourne.

Melbourne H Zharif completed his Bachelor Danica completed her Bachelor Pei Ern completed her Bachelor RMIT, RMIT, Melbourne.

Melbourne.

He He has has extensive extensive RMIT, RMIT, Melbourne.

Melbourne.

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DIRECTOR / STUDIO MANAGER PARTNER /design MARKETING, produce produce outst ou passion passion for for the the design process process and and is aisregistered a registered architect. architect.

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He passion forarchitectural the design process and is a registered architect. Zharif Danica and architectural aesthetics. to see innovation Danica completed completed herher Bachelor Bachelor PeiPei ErnErn completed completed herher Bachelor Bachelor andand has experience in sustainable design is chiefly an architect, however, specialises in using parametric in Environments be usedatasMelbourne tool to improveMasters and in Environments ataMelbourne Masters in Architecture in Architecture at RMIT, at RMIT, and has worked on several notable his role at studio five extends to design to create innovative projects University University andand herher Masters Masters in in Melbourne.

She She hashas worked worked locally develop living standards forMelbourne. all. projects.

Mi Hao has alocally visible Studio Manager and head of the and has experience with engagingArchitecture inArchitecture at RMIT, at RMIT, Melbourne.

Melbourne. at Hayball at Hayball and and Particular Particular Architects, Architects, passion for connecting with people administrative staff. pedagogy.

She She hashas work work experience experience in in as as well well as as Konzepte Konzepte & head Design & Design as studio five’s of marketing.

Singapore Singapore at id at Architects id Architects andand locally locally International International in Kuala in Kuala Lumpur.

Lumpur.

DIRECTOR PARTNER / CREATIVE DIRECTOR at Williams at Williams Boag Boag Architects.

Architects.

Danica Danica HerHer work work hashas been been published published DANICA YEE PEIaERN HO hashas been been registered a registered andand practicing practicing internationally internationally demonstrating demonstrating herher architect architect for for thethe lastlast sixsix years years andand high high work work quality. quality.

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She has worked locally improve improve andand develop develop living living standards standards Director.

Director.

Architecture at RMIT, Melbourne. for for at Hayball and Particular Architects, all.all.

She has work experience in as well as Konzepte & Design Singapore at id Architects and locally International in Kuala Lumpur. at Williams Boag Architects. Danica Her work has been published has been a registered and practicing internationally demonstrating her architect for the last six years and high work quality. She has a keen has a passion to see architectural eye for visual and architectural innovation be used as a tool to aesthetics as Studio Five’s Creative improve and develop living standards Director. for all.

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FabBox

FabBox is an architectural design and building manufacturing company providing prefabricated modular houses for home owners in the outer suburbs of Melbourne.

The service includes the design and documentation of the house, including communication to clients via an application designed for tablets and smartphones.

FabBox then manufactures these designs in a remote location and transports the modular building components on-site for assembly.

Screen A 2x Bondor Insulated Panel Colourbond Rool Top Ridge Capping Bondor Insulated Panel + Slate Roof Cover

Base Module

Colourbond BGC Square Gutter + Rectangular Downpipe

Corridor Module

Polar Eco-View Double Glazed

Polar Eco-View Double Glazed Plyco American Cherry Crown Cut Bondor Insulated Panel Skid

We seek to deliver the full range of design and production services to ensure our clients receive a high-quality, architecturally designed home.

Screen A 2x Bondor Insulated Panel Corridor Module

FabBox

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VISION

MISSION

GOALS

FabBox desires to provide affordable and high-quality ‘forever homes’ for a new generation of home owners that are sustainable and architecturally designed.

FabBox is a manufacturing and construction company that functions primarily as a design office led by a team of architects. Our mission is to use this architectural expertise to design and develop efficient, sustainable and high quality housing to cater for middle income Melbournians. We desire to provide architectural services that are accessible to the first home owner.

FabBox exists to provide an alternative to ‘build off the plan’ new homes purchased from corporate developers and builders.

1. We want to advocate for the value of the architectural profession in home design.

2. We want to position ourselves as accessible in the market in terms of price and service, changing the predominant thought that architectural services are simply for the wealthy.

3. We want to develop the application for smartphones and tablets as a viable means of communication with clients in the architectural profession.

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PROCESS

FabBox delivers the full range of services required to design, customise and build a family home.

1. Clients engage FabBox through the application available for tablets and smartphones

Client

2. Clients design and customise their FabBox home 3. The FabBox design is refined and developed by in-house architects in collaboration with our clients and consultants

Application

4. The FabBox modules are built in our warehouse 5. The FabBox modules are transported on-site and assembled by a team of skilled builders and contractors 6. The FabBox is finished and ready for move-in within 20-22 weeks.

Professionals

Prefabrication FabBox

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TARGET MARKET

Unique Selling Position

Customer Demographics

Customer Management

FabBox is unique because it provides an affordable and bespoke alternative to the housing developers already saturating the market. The main difference is that we market ourselves as an architecture & design firm, and not simply build-off-the-plan developers with little flexibility for personalised and unique solutions. We fill the gap for clients seeking out the design for a unique house that is new build, designed by them, approved by architects and delivered and constructed onsite very quickly.

The time frame for delivery of services is halved through our prefabrication model making our solution very attractive in comparison with long drawn out building processes.

Our target customers are 25-40 years of age who are looking to own and build their first long-term family home in Melbourne’s outer suburbs.

We will maintain a good relationship with customers through efficiency and care in communication. This is achieved through the application for devices allowing clients to contact an architect easily, minimising the need for face-toface meetings.

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These clients are middle income earners who are technology and possibly design-savvy looking for alternative bespoke solution to the traditional housing developer. They are people who are busy and always on-the-go.

We seek to uphold excellent customer service standards, primarily focusing on delivering a personalised service for each client, ensuring that our clients’ needs are met.

Finally, we operate under the Architects Accreditation Council of Australia (AACA), as Registered Architects with the Architects Registration Board of Victoria (ARBV) underpinning our work as competent architects, ensuring the architectural services delivered are of a high standard.

MARKET ANALYSIS

Target Market Locations

Target Market Suburbs

Value to Customers

Our target market locations are in the outer suburbs of Melbourne where there are currently newly developed plots of land available for purchase.

According to our research, we believe the City Council Wards in Victoria that fall into this category are:

Within these newly developed suburbs are plots of land ready for construction (see land developments overleaf). The suburbs where we see the most available land and therefore, the greatest potential for interested clients are:

Our customers will view our product and service partly as a necessity as many will approach our product already owning a vacant piece of land and needing to build a new home, however, the additional architectural advice and customisable model is a luxury that acts as an added alluring bonus for the client.

1. Casey (South-East) 2. Cardinia (South-East) 3. Wyndham (North-West) 4. Melton (North-West) 5. Whittlesea (North)

FabBox

1. Cranbourne, Casey City 2. Clyde, Casey City 3. Officer, Cardinia City 4. Tarneit, Wyndham City 5. Rockbank, Melton City 6. Plumpton, Melton City 7. Beveridge, Whittlesea City 8. Wollart, Whittlesea City

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7

WHITTLESEA HUME

8

MELTON 6 5

4

MELBOURNE

WYNDHAM

CARDINIA 3 CASEY 1 2

Target Market / City Council Wards

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1 Cranbourne 2 Clyde 3 Officer 4 Tarneit 5 Rockbank 6 Plumpton 7 Beveridge 8 Wollert

MARKET ANALYSIS

KURUNJANG MELTON PLUMPTON

BROOKFIELD

HILLSIDE

ROCKBANK

BURNSIDE

DERRIMUT

TARNEIT

WERRIBEE

POINT COOK

MAMBOURIN

Currently Under Development Newly Development Target Suburbs

Target Market / Urban Growth Maps

FabBox

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BEVERIDGE

KALKALLO DONNYBROOK

WOODSTOCK

MICKLEHAM

SUNBURY

MERNDA YUROKE

WOLLERT

GREENVALE

Currently Under Development Newly Development Target Suburbs

Target Market / Urban Growth Maps

OFFICER NARRE WARREN SOUTH

CRANBOURNE WEST CRANBOURNE EAST

PAKENHAM

CLYDE NORTH

CRANBOURNE SOUTH JUNCTION VILLAGE

CLYDE

Currently Under Development Newly Development Target Suburbs

Target Market / Urban Growth Maps

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MARKET ANALYSIS

Target Market Demographics As our target market locations are relatively new suburbs, the population demographics are also relatively young, fitting in with our target age range of 25-40 year olds. The amount of housing in these locations are also growing, demonstrating potential positive growth for the FabBox business.

FabBox

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60-85+ 13.2% CASEY 1

0-17 27.9%

50-59 11.7%

Cranbourne

2 18-24 9.7%

Clyde

35-49 23.2%

25-34 14.4%

2016

2021

127,790

2026

112,653

2021

98,583 2016

376,441

334,669

297,034

AGE DEMOGRAPHICS

2.99

2.95

2.93

2026

2016

2021

2026

HOUSEHOLDS

POPULATION

AVERAGE HOUSEHOLD SIZE

Target Market / City of Casey

60-85+ 15.5% 0-17 27.8%

50-59 11.6%

CARDINIA 3 Officer

35-49 22.3%

18-24 9.1% 25-34 13.5%

POPULATION

2016

2021

49,540

2026

41,706

2021

33,598

116,291

2016

138,084

94,492

AGE DEMOGRAPHICS

2.79

2.77

2.76

2026

2016

2021

2026

HOUSEHOLDS

13 Target Market / City of Cardinia

AVERAGE HOUSEHOLD SIZE

60-85+ 10.6%

4 Tarneit

WYNDHAM

0-17 27.8%

50-59 10.3%

35-49 23.5%

18-24 9.4% 25-34 18.4%

85,340

71,137 251,722 2021

295,283

209,750 2016

100,503

AGE DEMOGRAPHICS

2026

2016

2021

2026

2.92

2.93

2.92

2016

2021

2026

POPULATION

HOUSEHOLDS

AVERAGE HOUSEHOLD SIZE

POPULATION

HOUSEHOLDS

AVERAGE HOUSEHOLD SIZE

Target Market / City of Wyndham

60-85+ 10.8% 0-17 28.9%

50-59 10.8%

MELTON

35-49 23.3% 6

25-34 17.2%

Plumpton

5

18-24 9.2%

Rockbank

167,022

2016

2021

POPULATION

FabBox

71,382

210,883

133,010

44,411

55,971

AGE DEMOGRAPHICS

2026

2016

2021

2026

HOUSEHOLDS

Target Market / City of Melton

2.95

2.93

2.91

2016

2021

2026

AVERAGE HOUSEHOLD SIZE

14

60-85+ 10.8%

7

Beveridge

0-17 24.8%

50-59 11.6% WHITTLESEA 8

35-49 22.0%

Wollert

18-24 9.8% 25-34 16.3%

241,057

2016

2021

POPULATION

93,788

275,743

202,731

68,504

81,915

AGE DEMOGRAPHICS

2026

2016

2021

2026

HOUSEHOLDS

Target Market / City of Whittlesea

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2.94

2.92

2.92

2016

2021

2026

AVERAGE HOUSEHOLD SIZE

S.W.O.T. ANALYSIS

Strengths

Weaknesses

Opportunities

FabBox offers a fast construction timeframe

FabBox has to deal with “Occupational Health & Safety�

Risks that other design firms would easily bypass due to the manufacturing stage involved in our process

FabBox could help to advance the profession of architecture, bridging the gap between offering a service and offering a product

FabBox offers a product that is cheaper or comparable to other builders and developers FabBox offers a customisable layout FabBox has the ability to more closely monitor quality control as the modules are prefabricated in our own warehouse FabBox makes architecture accessible to clients who would otherwise not consider hiring an architect FabBox offers a design process that is easily understandable and engaging for the clients due to the application for devices

FabBox is viewed as a company with higher financial risks that a traditional design firm as the product and service are both relatively new in Australia

FabBox could build on customer base through word of mouth, when clients are happy with the end product and share the application with friends and family

FabBox will require both additional rental costs and material costs associated with the holding and supply of materials used for construction

FabBox can connect with those clients who may find engaging an architect or builder intimidating through the accessible use of the application for devices

FabBox may not be accessible to those who are not technologysavvy as they cannot operate the applications

FabBox are able to market a highly customisable product for a similar price to a set planned house

FabBox architects offer advice through the applications resulting in less face-to-face meetings

FabBox

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Threats The start up cost is potentially very high since it involves the design firm, development of application for devices and manufacturing component to be up and running at the same time FabBox face competition in other ‘big name’, well-established builders and developers such as Metricon or Henley that are already well-known by customers and are currently in active operation across the same target locations as FabBox

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S.W.O.T. ANALYSIS

Weakness / Threat FabBox has to deal with “Occupational Health & Safety� Risks that other design firms would easily bypass due to the manufacturing stage involved in our process

How FabBox will address the weakness / threat Putting into place stringent guidelines for construction in warehouse. Ensuring that FabBox is adequately insured and staff are well-trained and qualified. Ensuring that FabBox purchases adequate OH & S Insurance.

FabBox is viewed as a company with higher Study precedents in the industry such as ArchiBlox financial risks that a traditional design firm as the or Mima (overseas example). Investigate processes product and service are both relatively new in for both the design aspect, similar to a traditional Australia architecture company setup as well as the additional processes involved for manufacturing, material holding, transportation and construction onsite.

FabBox will require both additional rental costs Setting per unit sales goals for each quarter (?) in and material costs associated with the holding and order to achieve the cash flow required for the supply of materials used for construction rental of warehouse space.

Keeping a record of initial orders so that material projection may be produced for future material orders.

Charge clients extra for certain materials that are difficult to obtain or harder to store FabBox may not be accessible to those who are not technology-savvy as they cannot operate the applications The start up cost is potentially very high since it involves the design firm, development of application for devices and manufacturing component to be up and running at the same time

FabBox

Offer tutorial videos via the company website that can help clients through the steps for designing their own FabBox ??

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Weakness / Threat FabBox face competition in other ‘big name’, well-established builders and developers such as Metricon or Henley that are already well-known by customers and are currently in active operation across the same target locations as FabBox

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How FabBox will address the weakness / threat Promote FabBox through design blogs, home magazines & social media as an alternative that is highly customisable, affordable and placing emphasis on the architectural service provided Design blogs (such as The Design Files, Yellowtrace) and home magazines (such as Better Homes & Gardens, Real Living, Belle) in particular will provide credibility for FabBox as a design company rather than simply a construction & developing company, ensuring clients receive an innovative and unique housing solution for their needs

COMPETITORS

FabBox vs. Competitors

Metricon

Weaknesses

Our business improves on what our competitors offer in terms of price and timeframe as well as customer service. As aforementioned, our price point is in the mid range of pricing for many of our competitors’ products, ensuring it is an affordable and viable alternative.

Founded 1976 1000+ Staff 50% Market Share

Metricon’s housing models are standardised and do not offer customers much flexibility in terms of customisation or bespoke solutions

We are an innovative and forward-looking business, using current technologies such as smartphone and tablet technologies for communication, design and collaboration with the client. Furthermore, our product is delivered and completed much faster than our competitors. Since our products are prefabricated, we are able to put into place a more stringent and consistent quality control system.

Our product model enables us to provide excellent personal customer service to each client.

FabBox

Metricon offers a broad range of housing & land package options, predominantly targeting the outer suburbs of Melbourne.

Metricon provides the most options in terms of locations included in land packages and housing models available for purchase.

Strengths Metricon is a very established company Offers a broad range of options for housing & land packages Offers options for each price point range, targeting first home owners all the way to those looking to build luxury homes

Metricon faces difficulties in quality control of their construction as they hire a broad range of building contractors to carry out onsite building Metricon’s standard lead time from the time of engagement until completing the end product is relatively long and variable (35-58 weeks) Metricon is not an architectural design company, rather, they market themselves as builders and developers

Metricon offers a traditional & familiar approach to home building

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Henley

Weaknesses

Founded 1989 400+ Staff 20% Market Share

Henley housing models are standardised and do not offer customers much flexibility in terms of customisation or bespoke solutions

Henley offers both ready built homes and housing and land packages for purchase. They operate in a variety of new suburbs, particularly the outer suburbs of Melbourne.

Strengths Henley is a very established company Henley offers a range of housing & land packages to suit various budgets Henley offers a traditional & familiar approach to home building Henley places emphasis on environmental sustainability in their designs as well as their corporate philanthropic work

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Henley faces difficulties in quality control of their construction as they hire a broad range of building contractors to carry out onsite building Henley is not an architectural design company, rather, they market themselves as builders and developers Henley does not provide customers with a large range of options for land package locations

Archiblox

Weaknesses

Founded 2009 16 Staff 10% Market Share

Archiblox sits at the high end price range for our target clientele

Archiblox offers environmentally sustainable homes that are architecturally designed and prefabricated. These houses are designed and constructed quickly (12-28 weeks) as they are modular and prefabricated.

Archiblox models already have a set layout and selection of materials making bespoke changes more expensive

Strengths Archiblox provides relatively affordable houses for those seeking an environmentally sustainably designed home

Archiblox is still a relatively new product and concept for the house construction market in Australia so many customers are still unsure of its outcome

Archiblox houses are designed and constructed within a short timeframe (12-28 weeks) due to prefabrication and its modular design Archiblox offers an alternative housing product that can be bespoke and personalised Archiblox is an architecturally designed product

FabBox

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Competitor Project Locations

Melbourne CBD

Metricon Developments Henley Developments Archiblox Projects FabBox

Market Competitors / Locations

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Competitor Pricing

+

+

Metricon house & land packages

Henley house only

Henley house & land packages

Archiblox (house model only)

Our proposal (house model only)

$200,000 - $1,080,000*

$187,900 - $399,900

$370,225 - $677,842

$101,205 - $446,600

$200,000 - $450,000

*Metricon “freedom� range (house model only) $137,000+

Market Competitors / Cost

Metricon vs. FabBox Timeframe Metricon

35-58 weeks Completed home 6-8 weeks Preliminary Costing

6-8 weeks Permits & Contract Approvals

6-8 weeks Selections

1-2 weeks Pre Site Prep

16-32 weeks Onsite Construction

Our proposal

20-22 weeks Completed home 4 weeks Concept

6 weeks Permits

5 weeks Factory Prefab

4-6 weeks Onsite Assembly

1 week Finishings

Market Competitors / Timeframe

FabBox

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MARKETING STRATEGY

Design Blogs The Design Files, Real Living Blog, Better Homes & Gardens Blog Cost of Promotion: ?

Percentage of Sales: 15% Advertising FabBox on design blogs will target our technology and design savvy customers. The feature on the blog will increase exposure to the FabBox product and lend credibility to FabBox as a design firm. The feature on such blogs may include banner or sidebar advertisement spaces, or preferably even a writeup on the work of FabBox. A writeup would be more effective as it will show our clients the people and work behind the brand.

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Online Newspapers The Herald Sun Online

Print Newspapers The Herald Sun Print

Cost of Promotion: ?

Percentage of Sales: 15%

Cost of Promotion: ?

Percentage of Sales: 10%

The Herald Sun is a newspaper that is more widely read amongst our target market. As such, advertising in the Herald Sun Online will target our technology savvy customers, particularly those who are on-the-go and reading the news on their phones. The feature on the newspaper will increase exposure to the FabBox product and generate curiosity or interest behind the brand, product and services.

The Herald Sun is a newspaper that is more widely read amongst our target market.

As such, advertising in the Herald Sun is another avenue for branding exposure. Aside from a simple newspaper advertisement, there is the possibility for a writeup about the startup business giving our brand a face and personality for our clients.

Home Living Magazines Real Living, Better Homes & Gardens, Belle, Houses

Facebook FabBox Facebook Page FabBox Facebook Advertisements

Pintrest Pintrest Account Pintrest Buttons on Website

Cost of Promotion: ?

Percentage of Sales: 15%

Cost of Promotion: ?

Percentage of Sales: 20%

Cost of Promotion: Free Percentage of Sales: 10%

Home living magazines will target those in our market who are looking for ideas and inspiration for home design. It will enable us to target designsavvy customers, conveying FabBox as a credible design firm.

Appearance in such magazines will allow for the company to gain exposure in interior design and architecture spheres, and help to target potential clients.

Facebook will offer FabBox the opportunity to directly connect with customers through the Facebook page. This will enable us another platform to engage with past, current or future clients and also allow customers to discuss with each other and provide feedback on services and products.

By using a public Pintrest account, FabBox can showcase both their own work as well as home inspiration ideas for their current and potential clients. Pinning the company’s own images will allow for other Pintrest users to spread the product and service of FabBox while looking for home ideas.

Additionally, for current clients, the Pintrest board will provide ideas found from current design trends to help with the design and customisation of their FabBox home.

FabBox

Apart from the Facebook Page that can be setup, FabBox can also opt to pay for Facebook advertisements that will appear in potential customers’ newsfeeds. As Facebook selects advertisements based on the user’s history, those who see the FabBox advertisement will likely be interested in the product and / or service provided.

The FabBox website can also provide images and process diagrams that can be pinned easily to help with greater brand exposure through social media.

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Instagram Instagram Account Instagram Advertisements

YouTube / Vimeo YouTube Account Vimeo Account

Cost of Promotion: ?

Percentage of Sales: 5%

Cost of Promotion: ?

Percentage of Sales: 10%

By using a public Instagram account, FabBox can showcase aspects of office life, manufacturing, design process, as well as finished FabBoxes in order to engage potential clients.

The use of Instagram adds a personal dimension to the company allowing current and future clients to see snapshots of FabBoxes behind the scenes or under construction.

YouTube or Vimeo can be used to publicise the FabBox design process, FabBox inspirations, FabBox construction process, or even FabBox ‘how-to’ videos for those who may struggle with using the application for tablet or smartphone.

Instagram advertisements can also be purchased and will appear on potential clients’ newsfeeds allowing for another exposure point to the business for clients who are particularly technology-savvy.

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These videos can be embeded into various social media platforms including the FabBox website and the FaceBook page, creating another point of exposure for the Youtube / Vimeo channel.

PRODUCT COST

Product / Service

Description

Cost Price

Selling Price

Module A

Bedroom, Living and Dining room modules excl. furnitures

$ 14, 279.34

$ 20, 000

Module B

Materials required: • Colourbond BGC Square Gutter • Colourbond Rool Top Ridge Capping • BGC Rectangular Downpipe • Bondor Insulated Panel • Polar Eco-View Double Glazed • Plyco American Cherry Crown Cut • Mahjong Outdeco Gardenscreen • Skid-Steel Tubing • Slate Roof Cover • Labour cost

$ 57. 42 $ 28. 80 $ 51. 53 $ 2, 186 $ 1, 098 $ 783. 75 $ 1, 424 $ 47.60 $ 1,125 $ 7, 477.74

Kitchen incl. fixtures

$ 17, 558.33

$ 23, 000

Materials required: • • • • • • • • • • • •

Colourbond BGC Square Gutter Colourbond Rool Top Ridge Capping BGC Rectangular Downpipe Bondor Insulated Panel Polar Eco-View Double Glazed Plyco American Cherry Crown Cut Mahjong Outdeco Gardenscreen Skid-Steel Tubing Slate Roof Cover Chef Upright Cooker Gas 5 Star Chef Range Hood Kitchen Cabinets + Polyurethane Gloss White • Labour cost FabBox

$ 57.42 $ 28.80 $ 51.53 $ 2, 186 $ 1, 098 $ 783.75 $ 1, 424 $ 47.60 $ 1,125 $ 688 $ 139.99 $ 2, 451 $ 7, 477.74 28

Product / Service

Description

Cost Price

Selling Price

Module C

Bathroom & Laundry incl. fixtures

$ 21, 305.81

$ 28, 000

Materials required: • Colourbond BGC Square Gutter • Colourbond Rool Top Ridge Capping • BGC Rectangular Downpipe • Bondor Insulated Panel • Polar Eco-View Double Glazed • Marble Mosaic Tiles Tundra Grey Honed • Mahjong Outdeco Gardenscreen • Skid-Steel Tubing • Slate Roof Cover • Ht-003 Squafull Ceramic Back to Wall Faced Toilet Soft Close Seat • Frameless 10mm Safety Glass Shower Screen • SALZBURG 100-180cm Drop-in Cast iron bathtub • Bathroom Vanity Unit, High Gloss Finish, Ceramic Basin • Exhaust Fan White w/ Window Kit & Back-Draft Shutter • Labour cost

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$ 57. 42 $ 28. 80 $ 51. 53 $ 2, 186 $ 1, 098 $ 1, 500 $ 1, 424 $ 47.60 $ 1,125 $ 519.98 $ 254.95 $ 443.64 $ 279.95 $ 67 $ 7, 477.74

Product / Service

Description

Cost Price

Selling Price

Module A

A box module acting as transitional circulation space between rooms

$ 1, 710.40

$ 2, 300

Materials required: • Colourbond BGC Square Gutter • Bondor Insulated Panel • Plyco American Cherry Crown Cut • Mahjong Outdeco Gardenscreen • Skid-Steel Tubing • Slate Roof Cover • Labour cost FabBox App

FabBox

A platform used to communicate between clients and FabBox co. A platform for design of client’s modular house

$ 19.14 $ 437.20 $ 104.50 $ 178 $ 15.70 $ 125 $ 830.86 FREE for trial version, $2.99 for full version

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COST OF ONE UNIT

SCENARIO 1 Standard 2 Bedroom House Modules Required: • • • •

Module A x 4 Units Module B x 1 Unit Module C x 2 Units Module D x 10 Units

COST PRICE Cost to Build $ 137, 082.71

+

Onsite Cost $ 68, 541.40

=

Total Cost $ 205, 624.11

SELLING PRICE Selling Price $ 182, 000

+

Onsite Cost $ 91, 000

=

Total Cost $ 273, 000

PROFIT Selling Price $ 273, 000

-

Cost Price $ 205, 624.11

=

Total Profit $ 67, 375.89

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SCENARIO 2 Standard 4 Bedroom House Modules Required: • • • •

Module A x 8 Units Module B x 1 Unit Module C x 3 Units Module D x 20 Units

COST PRICE Cost to Build $ 220, 942.95

+

Onsite Cost $ 110, 471.48

=

Total Cost $ 331, 414.43

SELLING PRICE Selling Price $ 313, 000

+

Onsite Cost $ 156, 500

=

Total Cost $ 496, 500

PROFIT Selling Price $ 496, 500

-

Cost Price $ 331, 414.43

=

Total Profit $ 138, 085.57

FabBox

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33

PROFIT PROJECTION

$120,000 July 2016

June 2017

10 units

We project a $120,000 profit for the first year from July 2016 to June 2017. In order to achieve that targeted profit projection, FabBox will need to produce at least 10 units in that year.

Accumulated Profit

120k 100k 80k 60k 40k 20k 0

July

Aug

Sept

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

June

Months

-20k -40k

In the year 2016, we estimate a slow growth in profit due to the new start up of the company.

Our greater profit would begin from November as a few projects have reached completion.

Febuary and March we anticipate to be difficult months as the year has just begun and the amount of public holidays will affect the business. By the end of June, we project to reach our targeted profit of $120,000.

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$1.5M Year 1

$3M Year 5

110 units

230 units

Year 10

From the first year profit projection, we estimate to make a profit of $1.5M in 5 years and then reaching to a full capacity after 10 year with a net profit of $3M.

Accumulated Profit

3.0M

2.1M/2022

2.5M 2.0M

0.7M/2018

1.5M 1.0M 0.5M 0 -0.5M

Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

Year 7

Year 8

Year 9

Year 10

-1M

We projected our profit to steadily grow with a small drop due to investment in research and development as well as production capacity in year 4. We would be able to boost production onwards to year 7 where we will start to expand our market area. By the tenth year, we projected to reach our $3 million profit.

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Years

GROWTH PROJECTION

250

230

House Sold

200

160

150

140

Year 6

Year 7

110

100 50

130

200

80 10

20

Year 1

Year 2

40 Year 3

Year 4

Year 5

Year 8

Year 9

Year 10

Sales Projections

Year 1 will be a challenging year because of the existing competition and public awareness of Fabbox. Following the next two years, we estimated a steady growth as people would start familiarize with the Fabbox Application proccess but we investing in our production line.

Year 4, we estimated with the famiarity of the process and solid production line we can boost the sales up to year 7. After the expansion of the company and a full production capacity, we extimated to produce up to 230 units by year 10.

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$50

140units 2022

Millions

$40 $30

40units 2018

$20 $10

Year 1

Year 2

Year 3

Year 4

Year 5

Year 6

Year 7

Year 8

Year 9

Year 10

Sales Revenue Projections

Sales revenue is based on the number of homes sold and the selling price of those homes.

Using the sales projections above and an estimated price of $273,000 for a standard 2 bedroom home, the following graph of revenue projections is created. Modular builders typically receive 20% of the sales price as a down payment, with the balance due before delivery of the home. With our estimated sale price of $273,000, this translates to $54,600 up-front payment for each home, with $218,400 due before delivery.

37

INVENTORY

Inventory Item

Unit Price

Colourbond BGC Square Gutter

$ 19.14 LM

6

$ 114. 84

Colourbond Rool Top Ridge Capping

$ 9.60 LM

6

$ 57.60

BGC Rectangular Downpipe

$ 51.53 mm

2

$ 103.06

Bondor Indulated Panel

$ 218.60 mm

20

$ 4,372

Polar Eco-View Double Glazed

$ 549 mm

4

$ 2,196

Plyco American Cherry Crown Cut

$ 52.25 mm

30

$ 1, 567.50

Mahjong Outdeco Gardenscreen

$ 89 mm

32

$ 2,848

Skid-Steel Tubing

$ 15.70 mm

6

$ 94.20

Slate Roof Cover

$ 125 sqm

18

$ 2,250

Marble Mosaic TIles Tundra Grey Honed

$ 15 sqm

200

$ 3,000

Ht-003 Squafull Ceramic Back to Wall Faced Toilet Soft Close Seat

$ 259.99

2

$ 519.98

Framless 10mm Safety Glass Shower Screen

$ 254.95

2

$ 509.90

SALZBURG 100-180cm Drop-in Cast Iron Bathtub

$ 443.64

2

$ 887.28

Bathroom Vanity Unit, High Gloss Finish, Ceramic Basin

$ 279.95

2

Exhaust Fan White w/ Window Kit & Back-Draft Shutter

$ 67

2

$ 134

Chef Upright Cooker Gas

$ 688

2

$ 1, 356

5 Star Rangehood

$ 139.99

2

$ 279.98

Kitchen Cabinets + Polyurethane Gloss White

$ 2, 451

2

$ 4, 902

FabBox

Quantity in Stock

Total Cost

$ 559.90

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START UP COST

START UP COSTS Registrations Business Name Licences Permits Domain Names Vehicle Registration Membership Fees Accountant Fees Solicitor Fees Rental Lease Cost (Rent advance/deposit) Phone Connection Internet Connection Training

COST ($) 34 200 200 200 896 2, 230 1, 750 19, 760 4, 245 125 125 3, 000

Insurance Vehicle Public Liability Professional Indemnity Product Liability Workers Compensation Printing Stationery & Office Supplies Marketing & Advertising

156 47 677 47 154 2, 230 1, 540 2, 200

Website & Development Research & Development

65, 000

Total Start-Up Cost

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104, 616

EQUIPMENT / CAPITAL COSTS

COST ($)

Plant & Equipment Vehicles Computer Equipment Computer Software Phones Machinery & Tools Security System

20, 000 6, 000 12, 672 320 22, 000 2, 300

Inventory (Start Up) Gutter Ridge Cap Downpipe Insulated Panel Glass Plywood Gardenscreen Tubing Roof Cover Fixtures Tiles

4, 210 3, 202 8, 361 30, 739 15, 686 16, 023 16, 146 3, 349 8, 000 7, 845 3, 500

Office Equipment Furniture Shop Fitout

10,000 1, 850

Total Equipment / Capital Cost

192, 203

Total Direct Project

EXPENSES Direct Project Costs Production Fees

Total Income excl. GST

Opening Bank Balance INCOME Project Income excl. GST

97, 508

23, 947

6, 587 850 540 925 150 3, 320 1, 540 2, 200 0 850 300 6, 685

32, 436 32, 436

41, 125

41, 125

54, 600

54, 600

83, 181

JULY Actual

(4, 721)

207, 821

26, 852

6, 587 1, 780 910 925 150 2, 540 1, 850 3, 200 0 1, 250 975 6, 685

32, 436 32, 436

148, 533

148, 533

203, 100

203, 100

40, 273

AUGUST Actual

3, 454

(32, 098)

235, 498

30, 117

6, 587 1, 430 670 925 210 4, 540 1, 930 3, 500 550 1, 950 1, 140 6, 685

36, 286 36, 286

169, 095

169, 095

203, 400

203, 400

35, 552

SEPTEMBER Actual

26, 323

22, 869

307, 431

33, 470

6, 587 1, 998 870 925 320 6, 540 2, 530 3, 900 330 1, 575 1, 210 6, 685

36, 286 36, 286

237, 675

237, 675

330, 300

330, 300

3, 454

OCTOBER Actual

29, 785

3, 462

250, 443

28, 491

6, 587 2, 030 930 925 320 2, 134 2, 530 1, 700 0 3, 200 1, 450 6, 685

36, 286 36, 286

185, 666

185, 666

253, 905

253, 905

26, 323

NOVEMBER Actual

98, 619

68, 834

406, 123

28, 745

6, 587 1, 590 780 925 240 1, 760 2, 103 3, 210 700 3, 200 965 6, 685

36, 286 36, 286

341, 092

341, 092

474, 975

474, 975

29, 785

DECEMBER Actual

Capital Cost per month : $ 6,685

Initial Capital $ 380, 000 to be paid back over 5 years with an interest rate of 5%

JULY 2016 - DECEMBER 2016

CASH FLOW PROJECTION

Salaries Salaries incl. Super + tax Total Salaries

(42, 908)

35, 552

Actual closing bank balance

Profit / Loss excl GST

Total Expenses excl. GST

Total General Expenses excl GST

General Expenses Rent Electricity, Gas, Water, Cleaning etc Communications - telephone, internet etc Insurance Staff Amenities Computer Expenses General incl stationary etc PR + Marketing Repairs + Maintanence Transportation Printing Capital Cost

40, 273

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FabBox

PROFIT & LOSS SHEET

1ST JULY TO 31ST DECEMBER 2016

TOTAL ($)

INCOME Project Income excl. GST

1, 520, 280 Total Income excl. GST

EXPENSES Direct Project Costs Production Fees

1, 520, 280

1, 123, 186 Total Direct Project

Salaries Salaries incl. Super + Tax

1, 123, 186 210, 016

Total Salaries General Expenses Rent Electricity, Water, Security, Cleaning etc Communications - Telephone, Internet etc Insurance Staff Amenities Computer Expenses / Leases General incl. Stationary etc PR + Marketing Repairs + Maintenence Transportation Printing Capital Cost

39, 522 9, 678 4, 700 5, 550 1, 390 20, 804 12, 483 17, 710 1, 580 12, 025 6, 040 40, 110 Total General Expenses excl. GST TOTAL EXPENSES excl. GST NET INCOME

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219, 016

171, 592 1, 504, 794 15, 438

RISK MANAGEMENT

Risk

Likelihood

Impact

Strategy

Financial losses for any legal action taken against the business for services or advice we have provided

Unlikely

High

Professional Indemnity Insurance

Personal injury suffered by a client or member of the public

Unlikely

Medium

Public Liability Insurance

Bodily injury or property damage arising from goods supplied by the company

Unlikely

Medium

Product Liability Insurance

Risk of worker getting hurt during manufacturing

Likely

Low

Workers Compensation

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INSURANCE

Professional Indemnity Insurance

Product Liability Insurance

Professional Indemnity Cover • $ 5 million

Public Liability Cover • $ 5 million

Premium • $ 8, 126 per year

Premium • $ 566.61 per year

Excess • $ 500

Excess • $ 500

Estimated annual revenue • $ 1, 520, 000

Public Liability Insurance

Workers Compensation

Public Liability Cover • $ 5 million

Premium • $ 1, 850.01 per year

Premium • $ 566.61 per year Excess • $ 500

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REQUIRED STAFF

Job Title

Quantity

Expected Staff Turnover

Skills Necessary

Date Required

Marketing Manager

1

2 - 3 Years

Tech-savvy, qualifications in marketing and well verse in current social media platforms

July / 2016

In House Builders

4

5 Years

Knowledge and degree in management and construction, minumum 2 years experience

July / 2016

Human Resource

1

10 Years

Good communication skills, minimum 3 years experience

September / 2016

Drafter

1

5 Years

A degree in building design or Architecture (Min TAFE)

January / 2017

Office Manager

1

5 Years

A degree in management, good communication skills, minimum 2 years experience

January / 2017

Secretary

1

3 Years

Presentable, good communication skills

July / 2017

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