Coffe Luwak Business Plan

Okyna Rempah Bali Agro
Br. Kayuambua, Bangli, Bali - Indonesia

Phone: +62 878 6204 4578
E-Mail: wayan@baliokinastone.com Web: www.kopiluwakbaliagro.com
Executive Summary
Okyna Rempah Bali Agro prepares Luwak coffee beans grown in Kayuambua
Bangli for exportation and also sells to domestic market. We will expand
production capacity from 139,000/60kg bags per year to 120-160,000/60kg
per year. Our coffee stands out from that of the competition. We prepare the
top five percent, in terms of quality standards, of all Luwak coffee beans on
the market. Our customers seek this product as it provides them with a point
of differentiation to specialty roasters. In the past six years, demand for our
coffee has exceeded the amount we are able to supply and we have been
forced to refuse requests for larger shipments.
We predict growth of thirty percent in the first year with sales exceeding (US
$) expectations. In year three the plant will run at maximum capacity and
based on the current price of coffee we expect excellent profits (US $). We
have positive indicators from current importers that the additional amount of
beans will be sold.
Our keys to success are:
1. Establishing and maintaining working relationships and contractual
agreements with all importers and Indonesian coffee brokers and wholesalers.
2. Bringing the facility to maximum production within three years of operation.
3. Increasing our profit margin with the use of improved technology in the
current facility.
4. Effectively communicating to current and potential customers, through
targeted efforts, our position as a differentiated provider of the highest
quality Luwak coffee in the world.
1.1 Objectives
The objectives of Okyna Rempah Bali Agro:
Increase production and sale from 78,000/60kg bags per year to

approximately 100,000/60kg bags per year in the first year of operation at
the proposed facility and reach maximum capacity of 120,000/60kg bags per
year by year three.
Increase sales substantially in the first full year of operation.
Increase gross margins in the next three years.
1.2 Mission
Okyna Rempah Bali Agro seeks to serve coffee importers and enthusiasts by
exceeding minimum acceptable quality standards and by providing the
highest quality product at the lowest possible price. We value our
relationships with current and future customers and hope to communicate our
appreciation to them through our outstanding, guaranteed product quality,
personal service, and efficient delivery. Our commitment to our customers
and the country of Indonesia will be reflected through honest and responsible
business.
1.3 Keys to Success

The keys to success for Okyna Rempah Bali Agro are:
Establishing and maintaining working relationships and contractual

agreements with importers and Indonesian coffee brokers and wholesalers.
Bringing the new facility to maximum production within three years of
operation.
Increasing our profit margin with the use of improved technology in the new
facility.
Effectively communicating, to current and potential customers, our position as
a differentiated provider of the highest quality Luwak coffee in the world.
Company Summary
Okyna Rempah Bali Agro prepares raw coffee in parchment (pergamino), or
coffee since planting stage. The finished product, Luwak coffee beans are
packaged in 60kg sacks and sold on international and Indonesian market. Our
customers are importers and Indonesian wholesalers who provide high-quality
beans to the specialty roasting market.
2.1 Company Ownership

Okyna Rempah Bali Agro is a private, family owned preparer and exporter of
Bali-grown, Luwak coffee beans. It is owned and operated by Wayan Widana.
2.2 Company History

Okyna Rempah Bali Agro is in its seventh year of operation. The plant has
been arranged and maintained for maximum production and sales. It is
currently operating at maximum capacity.
Past Performance
$20,000,000
$18,000,000
$16,000,000
$14,000,000
$12,000,000
Sales
$10,000,000
Gross
Net
$8,000,000
$6,000,000
$4,000,000
$2,000,000
$2011
2012
2013
2011
2012
2013
$16,262,532
$17,304,066
$18,345,600
$2,439,380
$2,630,218
$2,814,215
15.00%
15.20%
15.34%
Operating Expenses
$12,196,899
$12,631,968
$13,346,424
Inventory Turnover
12.00
12.00
12.00
2011
2012
2013
Cash
$0
$0
$994,260
Inventory
$0
$0
$355,200
Other Current Assets
$0
$0
$243,936
Total Current Assets
$0
$0
$1,593,396
Past Performance
Sales
Gross Margin
Gross Margin %
Balance Sheet
Current Assets
Long-term Assets
Long-term Assets
$0
$0
$521,650
Accumulated Depreciation
$0
$0
$100,000
Total Long-term Assets
$0
$0
$421,650
Total Assets
$0
$0
$2,015,046
Accounts Payable
$0
$0
$8,435
Current Borrowing
$0
$0
$58,000
Other Current Liabilities (interest free)
$0
$0
$0
Total Current Liabilities
$0
$0
$66,435
Long-term Liabilities
$0
$0
$402,000
Total Liabilities
$0
$0
$468,435
Paid-in Capital
$0
$0
$525,000
Retained Earnings
$0
$0
$85,985
Earnings
$0
$0
$935,626
Total Capital
$0
$0
$1,546,611
Total Capital and Liabilities
$0
$0
$2,015,046
60
Current Liabilities
Other Inputs
Payment Days
2.3 Company Locations and Facilities

Okyna Rempah Bali Agros plant and office is located in Kayuambua - Bangli.
The warehouse has the capacity to prepare approximately 6,000 60kg bags of
exportable coffee beans. The facility is 1.000m2 and will have 30 selecting
machines with capacity to prepare 40,000 bags for exportation and 80,000
bags for storage. The proposed facility also handle shipping.
Products
Luwak coffee comes from Bali island - Indonesia, an area well known for its
excellent coffee. Also native to the area is a small civilize animal called a
Paroxurus. The locals call them luwaks. These little mammals live in trees and
one of their favorite foods is the red, ripe coffee cherry. They eat the cherries,
bean and all. While the bean is in the little guys stomach, it undergoes
chemical treatment and fermentation. The bean finishes it journey through
the digestive system, and exits.
The still intact beans are collected from the forest floor, and are cleaned, then
roasted and ground just like other coffee. The resulting coffee is said to be
like no other. It has a rich, heavy flavor with hint of caramel or chocolate.
Other terms used to describe it are earthly, musty and exotic. The body is
almost syrupy and its very smooth.
3.1 Competitive Comparison

In order to differentiate our product, coffee, which is a commodity, from the
product offering of competitors, all beans are guaranteed fresh and are
shipped within seven days of preparation. The beans shipped by Okyna
Rempah Bali Agro are therefore better than most and are guaranteed fresh.
In addition, all of the farms of Okyna Rempah Bali Agro adhere to
environmentally sound farming practices and avoid the use of pesticides and
chemicals in crop production.
There are approximately ten competitors who offer a product similar to ours.
Our research indicates that with our special treatment for the coffee, we
would become one of the top four, in terms of quality, providers. We also
have the advantage of established distribution channels and reputation. In
addition, improvements to our marketing efforts will further separate us from
the larger market and from our close competitors.
3.2 Sales Literature

Okyna Rempah Bali Agro currently works with importers who handle all of our
shipments. Likewise, we have dealt with the same Indonesian wholesalers, for
internal sales, each year. Sales to this point have been handled through
personal selling. Additional sales literature will include a website, and direct
mail to specialty roasters and importers.
3.3 Sourcing
The facility is ideally located in Kayuambua, Kintamani - Bangli. The beans
produced in the region are of the highest quality. With additional financing,
we want to make more volume the product.
Market Analysis Summary

Coffee is the second largest commodity market next to oil, and Luwak coffee
comes from Bali Island - Indonesia well known for its excellent coffee.
Imports of coffee in the United States have increased ninety-four percent in
the past five years and consumption of coffee within Indonesia has seen
similar increases. In addition, demand for Luwak coffee is above the market
clearing level, and market price and crop yield estimates are at an all time
high.
The increase in the number of independent specialty roasters in the United
States, Australia and others has contributed to and is an indicator of the
increased demand for coffee. Within the larger coffee market is our target
market is the specialty roaster. These discerning customers want the highest
quality coffee beans. They serve the growing "gourmet" coffee market and
are represented by thousands of specialty roasters. The Luwak coffee bean is
considered to be the best in the world and as such, the demand for Luwak
coffee is high on the specialty roaster market. Specialty roasters are willing to
pay more for Luwak coffee and attempt to distinguish themselves via the
characteristics of the bean they use i.e. the location in which it was grown,
farming methods, bean size, etc. The final consumer is relatively price
insensitive if the coffee is good, has won awards, or is compatible with a
popular trend. We estimate that specialty roasting in the U.S. alone is a
($USD) one-billion market.
4.1 Market Segmentation

The potential customer groups for Okyna Rempah Bali Agro are:
Market research suggests that there are approximately 100 importers of

Luwak coffee that would be able to handle the quantities of our shipments
and are in our target market .
Market serves as a safety valve for our export business. By maintaining
relationships with wholesalers we have an alternative market with established
distribution channels.
As we move towards maximum capacity we will plan to more aggressively
target this audience. We hope to eventually reduce transactions with
wholesalers and capture their value-added costs as profit. We anticipate that
this effort will begin approximately four years into operation of the facility.
Market Analysis
2009
Potential
Customers
2010
2011
2012
2013
Growth
CAGR
U.S. Importers
(60kg bags)
26%
70,140
88,376
111,354
140,306
176,786
26.00%
Australian
Importers (60kg
bags)
26%
30,060
37,876
47,724
60,132
75,766
26.00%
26.00%
100,200
126,252
159,078
200,438
252,552
26.00%
Total
4.2 Strategy and Implementation Summary

Okyna Rempah Bali Agro strategy is to expand production capabilities in order
to fulfill the requests of importers with whom we currently deal for larger
orders which we are unable to currently fulfill. We intend to first maximize
quantity of coffee sold within existing channels and second, establish
additional accounts through targeted marketing efforts.
Marketing Strategy
Okyna Rempah Bali Agro marketing strategy will include the use of targeted
print media advertising and direct selling to importers who provide Luwak
coffee to specialty roasters. We will capitalize on existing relationships with
importers who have stated their willingness to contact affiliates and
recommend Okyna Rempah Bali Agro coffee. We have positioned ourselves as
a differentiated provider of the highest quality Luwak coffee. The primary goal
of all marketing efforts will be to communicate this to existing and potential
customers.
5.1 Distribution Strategy

Distribution is one of the greatest challenges faced by Okyna Rempah Bali
Agro. The distribution system of Indonesia is largely outdated and inefficient.
Moreover, taxes, specifically excise taxes are high. Distribution costs for
internal sales are absorbed by the customer but distribution costs for exports
are absorbed by us. Increasing the volume of our exports makes us eligible to
receive reduced fees and helps ensure that trucks and rail cars are running at
maximum capacity.
5.2 Marketing Programs

Our most important marketing program is an increase in personal selling
combined with targeted direct mail and print advertising. The program is
intended to establish contractual agreements with 10 additional importers,
increase brand awareness of our product, and communicate our position as a
provider of the highest quality Luwak coffee on the market.
Another key marketing program is the development of a sophisticated
Website. The goal of this program is to increase our presence on the world
wide web and provide additional means of communication and customer data
collection.
5.3 Pricing Strategy

Because Okyna Rempah Bali Agro adheres to higher quality standards, the
price of our coffee is slightly higher (four to nine percent) than the market
average. Beans that do not meet Okyna Rempah Bali Agro quality standards
are resold on the Indonesian market at the current market price. Luwak
coffee, on the import market, now sells for US$ 213.56/60kg bag. According
to Okyna Rempah Bali Agro pricing strategy, Okyna Rempah Bali Agro coffee
would sell for approximately US$ 224/60kg bag. Importers have to this point
been willing to pay the additional cost.
5.4 Sales Strategy

Okyna Rempah Bali Agro strategy focuses first on meeting the increased
demand from importers with whom we have established relationships for
larger orders. These importers are critical to our ability to acquire additional
accounts without having to spend a great deal on sales efforts. Secondly we
will focus on increasing the volume, while maintaining the percentage of
sales, of beans sold to the internal Indonesian market. When we have
reached maximum sales to existing channels we can then shift the majority of
our focus to securing additional import accounts.
5.4.1 Sales Forecast

The following chart and table show our present sales forecast. We project
healthy growth in sales in 2011, a slightly smaller increase again in 2012, and
reach maximum for production capacity in 2013 representing a large growth

over the previous year.
Sales by year
$50,000,000
$45,000,000
$40,000,000
$35,000,000
$30,000,000
Other
$25,000,000
Export
$20,000,000
$15,000,000
$10,000,000
$5,000,000
$2011
2012
2013
Sales Forecast
2011
2012
2013
100,200
120,000
160,000
100,200
120,000
160,000
2011
2012
2013
$262.08
$275.18
$288.29
$0.00
$0.00
$0.00
$26,260,416
$33,021,600
$46,126,400
$0
$0
$0
$26,260,416
$33,021,600
$46,126,400
Direct Unit Costs
2011
2012
2013
Import and Export
$212.00
$222.60
$233.20
$0.00
$0.00
$0.00
$21,242,400
$26,712,000
$37,312,000
$0
$0
$0
$21,242,400
$26,712,000
$37,312,000
Unit Sales
Import and Export
Other
Total Unit Sales
Unit Prices
Import and Export
Other
Sales
Import and Export
Other
Total Sales
Other
Direct Cost of Sales
Import and Export
Other
Subtotal Direct Cost of Sales
Management Summary
Okyna Rempah Bali Agro management consists of four full-time employees.
Additional assistance is acquired on a part-time basis and/or through the use of
consultants, specifically in legal matters. Detailed descriptions are found in the
following section.
6.1 Management Team

Okyna Rempah Bali Agro is organized into three functional areas: product
sourcing, sales, and marketing; production and shipping; and finance and
administration.
I Wayan Widana S.Sos., President in charge of finance and administration, 41,
has worked in the coffee export business for 10 years. Before starting Okyna
Rempah Bali Agro he is also President of Bali Okina carving stone in Bali Island
Indonesia. He began Bali Okina Carving Stone 15 years .
Thea Kustiati in charge of product sourcing, sales, and marketing. Completed her
MBA at Calstate University of Northridge and owned Company for 15 years on
Aviation Industry and commodities market as a broker. Her later took a position
as an International Sales and Marketing Representative for a major agricultural
brokerage and supply firm .
I Putu Resika in charge of production and shipping. Worked as a for the
Indonesian government . He is responsible for the supervision of all plant
employees.
Additional Management:
Pandu Prasnaditya as a Quality Control and IT Manager
Ni Ketut Darmayanti as a Financial Manager
Financial Plan
We want to finance growth through a combination of long-term debt and cash
flow. Purchase of the larger facility and equipment will require approximately
eighty percent debt financing. Additional technology will be primarily financed
with cash-flow. Inventory turnover must remain at or above four or we run the
risk of backing up orders and jeopardizing our freshness guarantees. We have
had no problems with accounts receivable and we expect to maintain our
collection days at 30 with thirty percent of sales on credit.
In addition, we must achieve gross margins of thirty-five percent and hold
operating costs no more than sixty-five percent of sales.
7.1 Break-even Analysis
The break-even analysis shows that Okyna Rempah Bali Agro has sufficient sales
strength to remain viable. Our per month break-even point projections are
detailed in the following table and chart.
Break-even Analysis
Monthly Units Break-even
Monthly Revenue Break-even
2,049
$537,078
Assumptions:
Average Per-Unit Revenue
$262.08
Average Per-Unit Variable Cost
$212.00
Estimated Monthly Fixed Cost
7.2 Important Assumptions
$102,629
Important assumptions for this plan are found in the following table. These
assumptions largely determine the financial plan and require that we secure
additional financing.
General Assumptions
2011
2012
2013
14.00%
14.00%
14.00%
9.00%
9.00%
9.00%
47.00%
47.00%
47.00%
Plan Month
Current Interest Rate
Long-term Interest Rate
Tax Rate
Other
7.3 Key Financial Indicators

The most important factor to Okyna Rempah Bali Agro anticipated growth is the
procurement of necessary financing. The size of the orders currently requested by
importers are larger than what can be produced given our present plant capacity.
The following chart shows changes in key financial indicators: sales, gross
margin, operating expenses, collection days, and inventory turnover. The growth
in sales goes above thirty percent in the first year, twenty percent in second, and
back to thirty percent in year three after which it will settle. We expect to
increase gross margin but our projections show a decline in the first two years
following the purchase of the new facility. This is due to the facilities not being
run at maximum capacity. The projections for collection days and inventory
turnover show that we expect a decline in these indicators.
Benchmark
3
2.5
2
2011
1.5
2012
2013
1
0.5
0
Sales
Gross Margin %
Operating
Expenses
Inventory
Turnover
7.4 Projected Profit and Loss

We expect to close the first year of production in the new facility with quite
exempary ($USD) sales and to increase our sales in the second and third years.
Net earnings will be above industry average ($USD).
Gross Margin Yearly

$9,000,000.00
$8,000,000.00
$7,000,000.00
$6,000,000.00
$5,000,000.00
$4,000,000.00
$3,000,000.00
$2,000,000.00
$1,000,000.00
$2011
2012
2013
Profit Yearly
$4,000,000
$3,500,000
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
$2011
2012
2013
Pro Forma Profit and Loss
Sales
2011
2012
2013
$26,260,416
$33,021,600
$46,126,400
$21,242,400
$26,712,000
$37,312,000
Production Payroll
$300,396
$316,884
$331,912
Other Costs of Sales
$300,000
$345,000
$410,000
Total Cost of Sales
$21,842,796
$27,373,884
$38,053,912
$4,417,620
$5,647,716
$8,072,488
16.82%
17.10%
17.50%
Sales and Marketing Payroll
$225,492
$128,150
$136,521
Advertising/Promotion
$144,000
$165,000
$165,000
Travel
$21,000
$22,500
$24,000
Other Sales and Marketing Expenses
$24,000
$26,500
$28,500
$414,492
$342,150
$354,021
1.58%
1.04%
0.77%
$119,400
$130,228
$173,377
$0
$0
$0
$216,000
$216,000
$216,000
Leased Equipment
$50,400
$50,400
$50,400
Utilities
$36,000
$36,000
$36,000
Insurance
$72,000
$75,000
$78,000
$305,250
$300,000
$300,000
Payroll Taxes
$0
$0
$0
Other General and Administrative

Expenses
$0
$0
$0
$799,050
$807,628
$853,777
3.04%
2.45%
1.85%
$0
$0
$0
Gross Margin
Gross Margin %
Operating Expenses
Sales and Marketing Expenses
Total Sales and Marketing Expenses

Sales and Marketing %
General and Administrative Expenses
General and Administrative Payroll
Marketing/Promotion
Depreciation
Rent
Total General and Administrative

Expenses
General and Administrative %
Other Expenses:
Other Payroll
Consultants
$18,000
$24,000
$30,000
$0
$0
$0
$18,000
$24,000
$30,000
0.07%
0.07%
0.07%
$1,231,542
$1,173,778
$1,237,798
Profit Before Interest and Taxes
$3,186,078
$4,473,938
$6,834,690
EBITDA
$3,402,078
$4,689,938
$7,050,690
$269,166
$238,449
$225,191
$1,370,949
$1,990,680
$3,106,465
$1,545,964
$2,244,809
$3,503,035
5.89%
6.80%
7.59%
Other Expenses
Total Other Expenses
Other %
Total Operating Expenses
Interest Expense
Taxes Incurred
Net Profit
Net Profit/Sales
7.5 Projected Cash Flow

Okyna Rempah Bali Agro expects to manage cash flow over the next three years
with the assistance of a loan supported by Private Loan Investor This financing
assistance is required to provide the working capital to meet the current needs
for the construction of the new production facility and additional personnel,
distribution costs, and other related expenses.
Pro Forma Cash Flow

2011
2012
2013
$26,260,416
$33,021,600
$46,126,400
$26,260,416
$33,021,600
$46,126,400
Sales Tax, VAT, HST/GST Received
$0
$0
$0
New Current Borrowing
$0
$0
$0
New Other Liabilities (interest-free)
$0
$0
$0
$2,700,000
$0
$0
Sales of Other Current Assets
$0
$0
$0
Sales of Long-term Assets
$0
$0
$0
New Investment Received
$0
$650,000
$650,000
Cash Received
Cash from Operations
Cash Sales
Subtotal Cash from Operations
Additional Cash Received
New Long-term Liabilities
Subtotal Cash Received
$28,960,416
$33,671,600
$46,776,400
2011
2012
2013
$645,288
$575,262
$641,810
$23,678,478
$29,770,693
$41,735,934
$24,323,766
$30,345,955
$42,377,744
$0
$0
$0
$57,996
$0
$0
$0
$0
$0
$305,250
$294,636
$0
$60,000
$75,000
$85,000
$2,700,000
$0
$0
$0
$0
$0
$27,447,012
$30,715,591
$42,462,744
Net Cash Flow
$1,513,404
$2,956,009
$4,313,656
Cash Balance
$2,507,664
$5,463,673
$9,777,329
Expenditures
Expenditures from Operations
Cash Spending
Bill Payments
Subtotal Spent on Operations
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out
Principal Repayment of Current Borrowing
Other Liabilities Principal Repayment
Long-term Liabilities Principal Repayment
Purchase Other Current Assets
Purchase Long-term Assets
Dividends
Subtotal Cash Spent
7.6 Projected Balance Sheet

As shown in the balance sheet in the following table, our net will grow quickly by
the end of 2013 and to continue steadily through the end of the plan period. The
monthly projections are in the appendix.
Pro Forma Balance Sheet

2011
2012
2013
Cash
$2,507,664
$5,463,673
$9,777,329
Inventory
$1,958,880
$2,463,262
$3,440,747
Assets
Current Assets
$303,936
$378,936
$463,936
$4,770,480
$8,305,872
$13,682,013
$3,221,650
$3,221,650
$3,221,650
$316,000
$532,000
$748,000
$2,905,650
$2,689,650
$2,473,650
Total Assets
$7,676,130
$10,995,522
$16,155,663
2011
2012
2013
$1,786,801
$2,506,020
$3,513,127
Current Borrowing
$4
$4
$4
Other Current Liabilities
$0
$0
$0
$1,786,805
$2,506,024
$3,513,131
$2,796,750
$2,502,114
$2,502,114
$4,583,555
$5,008,138
$6,015,245
$525,000
$1,175,000
$1,825,000
Retained Earnings
$1,021,611
$2,567,575
$4,812,383
Earnings
$1,545,964
$2,244,809
$3,503,035
Total Capital
$3,092,575
$5,987,383
$10,140,418
Total Liabilities and Capital
$7,676,130
$10,995,522
$16,155,663
Net Worth
$3,092,575
$5,987,383
$10,140,418

Long-term Assets
Long-term Assets
Liabilities and Capital

Current Liabilities
Accounts Payable
Subtotal Current Liabilities

Total Liabilities
Paid-in Capital
7.7 Business Ratios

Standard business ratios are included in the following table. The ratios show an
aggressive plan for growth in order to reach maximum production within three
years. Return on investment increases each year as we bring the new facility to
maximum capacity and production. Return on sales and assets remain strong and
cost of goods decreases based upon efficiency projections.
Ratio Analysis
2011
2012
2013
Industry
Profile
43.14%
25.75%
39.69%
5.50%
25.52%
22.40%
21.30%
12.43%
3.96%
3.45%
2.87%
27.50%
62.15%
75.54%
84.69%
60.13%
Long-term Assets
37.85%
24.46%
15.31%
39.87%
100.00%
100.00%
100.00%
100.00%
Current Liabilities
23.28%
22.79%
21.75%
8.46%
36.43%
22.76%
15.49%
16.54%
Total Liabilities
59.71%
45.55%
37.23%
25.00%
Net Worth
40.29%
54.45%
62.77%
75.00%
100.00%
100.00%
100.00%
100.00%
Gross Margin
16.82%
17.10%
17.50%
23.32%
Selling, General & Administrative

Expenses
10.94%
10.31%
9.91%
9.39%
0.55%
0.50%
0.36%
2.06%
12.13%
13.55%
14.82%
4.36%
Current
2.67
3.31
3.89
5.32
Quick
1.57
2.33
2.92
3.45
Total Debt to Total Assets
59.71%
45.55%
37.23%
27.13%
Pre-tax Return on Net Worth
94.32%
70.74%
65.18%
12.79%
Pre-tax Return on Assets
38.00%
38.52%
40.91%
17.55%
Additional Ratios
2011
2012
2013
Net Profit Margin
5.89%
6.80%
7.59%
n.a
Return on Equity
49.99%
37.49%
34.55%
n.a
Sales Growth
Percent of Total Assets
Inventory
Total Assets
Percent of Sales
Sales
Advertising Expenses
Main Ratios
Activity Ratios
Inventory Turnover
10.91
12.08
12.64
n.a
Accounts Payable Turnover
14.25
12.17
12.17
n.a
27
26
26
n.a
3.42
3.00
2.86
n.a
Debt to Net Worth
1.48
0.84
0.59
n.a
Current Liab. to Liab.
0.39
0.50
0.58
n.a
$2,983,675
$5,799,847
$10,168,882
n.a
11.84
18.76
30.35
n.a
Assets to Sales
0.29
0.33
0.35
n.a
Current Debt/Total Assets
23%
23%
22%
n.a
Acid Test
1.57
2.33
2.92
n.a
Sales/Net Worth
8.49
5.52
4.55
n.a
Dividend Payout
0.00
0.00
0.00
n.a
Payment Days
Total Asset Turnover
Debt Ratios
Liquidity Ratios
Net Working Capital
Interest Coverage
Additional Ratios
Appendix
Sales Forecast
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Unit Sales
Import and Export
0%
8,700
8,200
8,800
8,300
8,450
8,050
8,000
8,200
8,050
8,000
9,050
8,400
Other
0%
8,700
8,200
8,800
8,300
8,450
8,050
8,000
8,200
8,050
8,000
9,050
8,400
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
$262.08
$262.08
$262.08
$262.08
$262.08
$262.08
$262.08
$262.08
$262.08
$262.08
$262.08
$262.08
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$2,280,096
$2,149,056
$2,306,304
$2,175,264
$2,214,576
$2,109,744
$2,096,640
$2,149,056
$2,109,744
$2,096,640
$2,371,824
$2,201,472
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Total Unit Sales
Unit Prices
Import and Export
Other
Sales
Import and Export
Other
Total Sales
$2,280,096
$2,149,056
$2,306,304
$2,175,264
$2,214,576
$2,109,744
$2,096,640
$2,149,056
$2,109,744
$2,096,640
$2,371,824
$2,201,472
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Direct Unit Costs
Import and Export
0.00%
$212.00
$212.00
$212.00
$212.00
$212.00
$212.00
$212.00
$212.00
$212.00
$212.00
$212.00
$212.00
Other
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
$1,844,400
$1,738,400
$1,865,600
$1,759,600
$1,791,400
$1,706,600
$1,696,000
$1,738,400
$1,706,600
$1,696,000
$1,918,600
$1,780,800
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$1,844,400
$1,738,400
$1,865,600
$1,759,600
$1,791,400
$1,706,600
$1,696,000
$1,738,400
$1,706,600
$1,696,000
$1,918,600
$1,780,800
Import and Export
Other
Subtotal Direct Cost of Sales
Personnel Plan
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
$3,200
$3,200
$3,200
$3,200
$3,200
$3,200
$3,200
$3,200
$3,200
$3,200
$3,200
$3,200
$18,333
$18,333
$18,333
$18,333
$18,333
$18,333
$18,333
$18,333
$18,333
$18,333
$18,333
$18,333
$3,500
$3,500
$3,500
$3,500
$3,500
$3,500
$3,500
$3,500
$3,500
$3,500
$3,500
$3,500
$25,033
$25,033
$25,033
$25,033
$25,033
$25,033
$25,033
$25,033
$25,033
$25,033
$25,033
$25,033
$3,750
$3,750
$3,750
$3,750
$3,750
$3,750
$3,750
$3,750
$3,750
$3,750
$3,750
$3,750
Other
$15,041
$15,041
$15,041
$15,041
$15,041
$15,041
$15,041
$15,041
$15,041
$15,041
$15,041
$15,041
Subtotal
$18,791
$18,791
$18,791
$18,791
$18,791
$18,791
$18,791
$18,791
$18,791
$18,791
$18,791
$18,791
Marco Slivera Sr, CEO
$4,200
$4,200
$4,200
$4,200
$4,200
$4,200
$4,200
$4,200
$4,200
$4,200
$4,200
$4,200
Ralph Henzo, CFO
$3,500
$3,500
$3,500
$3,500
$3,500
$3,500
$3,500
$3,500
$3,500
$3,500
$3,500
$3,500
$750
$750
$750
$750
$750
$750
$750
$750
$750
$750
$750
$750
Other
$1,500
$1,500
$1,500
$1,500
$1,500
$1,500
$1,500
$1,500
$1,500
$1,500
$1,500
$1,500
Subtotal
$9,950
$9,950
$9,950
$9,950
$9,950
$9,950
$9,950
$9,950
$9,950
$9,950
$9,950
$9,950
Name or Title or Group
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Subtotal
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Total People
15
15
15
15
15
15
15
15
15
15
15
15
Total Payroll
$53,774
$53,774
$53,774
$53,774
$53,774
$53,774
$53,774
$53,774
$53,774
$53,774
$53,774
$53,774
Production Personnel
Antonio Silvera, VP Production
Plant Employees
Other
Subtotal
Sales and Marketing Personnel
Marco Silvera Jr, VP Sales/Mktg.
General and Administrative Personnel
Admin/Acctg. Staff
Other Personnel
Pro Forma Profit and Loss
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
$2,280,096
$2,149,056
$2,306,304
$2,175,264
$2,214,576
$2,109,744
$2,096,640
$2,149,056
$2,109,744
$2,096,640
$2,371,824
$2,201,472
$1,844,400
$1,738,400
$1,865,600
$1,759,600
$1,791,400
$1,706,600
$1,696,000
$1,738,400
$1,706,600
$1,696,000
$1,918,600
$1,780,800
Production Payroll
$25,033
$25,033
$25,033
$25,033
$25,033
$25,033
$25,033
$25,033
$25,033
$25,033
$25,033
$25,033
Other Costs of Sales
$25,000
$25,000
$25,000
$25,000
$25,000
$25,000
$25,000
$25,000
$25,000
$25,000
$25,000
$25,000
Sales
Total Cost of Sales
$1,894,433
$1,788,433
$1,915,633
$1,809,633
$1,841,433
$1,756,633
$1,746,033
$1,788,433
$1,756,633
$1,746,033
$1,968,633
$1,830,833
$385,663
$360,623
$390,671
$365,631
$373,143
$353,111
$350,607
$360,623
$353,111
$350,607
$403,191
$370,639
16.91%
16.78%
16.94%
16.81%
16.85%
16.74%
16.72%
16.78%
16.74%
16.72%
17.00%
16.84%
Sales and Marketing Payroll
$18,791
$18,791
$18,791
$18,791
$18,791
$18,791
$18,791
$18,791
$18,791
$18,791
$18,791
$18,791
Advertising/Promotion
$12,000
$12,000
$12,000
$12,000
$12,000
$12,000
$12,000
$12,000
$12,000
$12,000
$12,000
$12,000
Travel
$1,750
$1,750
$1,750
$1,750
$1,750
$1,750
$1,750
$1,750
$1,750
$1,750
$1,750
$1,750
Other Sales and Marketing

Expenses
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$2,000
$34,541
$34,541
$34,541
$34,541
$34,541
$34,541
$34,541
$34,541
$34,541
$34,541
$34,541
$34,541
1.51%
1.61%
1.50%
1.59%
1.56%
1.64%
1.65%
1.61%
1.64%
1.65%
1.46%
1.57%
$9,950
$9,950
$9,950
$9,950
$9,950
$9,950
$9,950
$9,950
$9,950
$9,950
$9,950
$9,950
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$18,000
$18,000
$18,000
$18,000
$18,000
$18,000
$18,000
$18,000
$18,000
$18,000
$18,000
$18,000
Leased Equipment
$4,200
$4,200
$4,200
$4,200
$4,200
$4,200
$4,200
$4,200
$4,200
$4,200
$4,200
$4,200
Utilities
$3,000
$3,000
$3,000
$3,000
$3,000
$3,000
$3,000
$3,000
$3,000
$3,000
$3,000
$3,000
Insurance
$6,000
$6,000
$6,000
$6,000
$6,000
$6,000
$6,000
$6,000
$6,000
$6,000
$6,000
$6,000
$0
$27,750
$27,750
$27,750
$27,750
$27,750
$27,750
$27,750
$27,750
$27,750
$27,750
$27,750
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$41,150
$68,900
$68,900
$68,900
$68,900
$68,900
$68,900
$68,900
$68,900
$68,900
$68,900
$68,900
1.80%
3.21%
2.99%
3.17%
3.11%
3.27%
3.29%
3.21%
3.27%
3.29%
2.90%
3.13%
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$1,500
$1,500
$1,500
$1,500
$1,500
$1,500
$1,500
$1,500
$1,500
$1,500
$1,500
$1,500
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$1,500
$1,500
$1,500
$1,500
$1,500
$1,500
$1,500
$1,500
$1,500
$1,500
$1,500
$1,500
0.07%
0.07%
0.07%
0.07%
0.07%
0.07%
0.07%
0.07%
0.07%
0.07%
0.06%
0.07%
Total Operating Expenses
$77,191
$104,941
$104,941
$104,941
$104,941
$104,941
$104,941
$104,941
$104,941
$104,941
$104,941
$104,941
$308,472
$255,682
$285,730
$260,690
$268,202
$248,170
$245,666
$255,682
$248,170
$245,666
$298,250
$265,698
EBITDA
$326,472
$273,682
$303,730
$278,690
$286,202
$266,170
$263,666
$273,682
$266,170
$263,666
$316,250
$283,698
$23,885
$23,621
$23,356
$23,092
$22,827
$22,563
$22,298
$22,034
$21,769
$21,505
$21,240
$20,976
Taxes Incurred
$133,756
$109,069
$123,316
$111,671
$115,326
$106,035
$104,983
$109,815
$106,408
$105,356
$130,195
$115,019
Net Profit
$150,831
$122,992
$139,058
$125,927
$130,049
$119,572
$118,385
$123,834
$119,992
$118,805
$146,815
$129,703
6.62%
5.72%
6.03%
5.79%
5.87%
5.67%
5.65%
5.76%
5.69%
5.67%
6.19%
5.89%
Nov
Dec
Gross Margin
Gross Margin %
Operating Expenses
Sales and Marketing Expenses
Total Sales and Marketing

Expenses
Sales and Marketing %
General and Administrative

Expenses
General and Administrative

Payroll
Marketing/Promotion
Depreciation
Rent
Payroll Taxes
Other General and

Administrative Expenses
Total General and

Administrative Expenses
General and Administrative %
9%
Other Expenses:
Other Payroll
Consultants
Other Expenses
Total Other Expenses
Other %
Interest Expense
Net Profit/Sales
Pro Forma Cash Flow
Jan
Cash Received
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Cash from Operations
Cash Sales
$2,280,096
$2,149,056
$2,306,304
$2,175,264
$2,214,576
$2,109,744
$2,096,640
$2,149,056
$2,109,744
$2,096,640
$2,371,824
$2,201,472
$2,280,096
$2,149,056
$2,306,304
$2,175,264
$2,214,576
$2,109,744
$2,096,640
$2,149,056
$2,109,744
$2,096,640
$2,371,824
$2,201,472
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
New Current Borrowing
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
New Other Liabilities (interest-free)
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$2,700,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Sales of Other Current Assets
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Sales of Long-term Assets
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
New Investment Received
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$4,980,096
$2,149,056
$2,306,304
$2,175,264
$2,214,576
$2,109,744
$2,096,640
$2,149,056
$2,109,744
$2,096,640
$2,371,824
$2,201,472
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Cash Spending
$53,774
$53,774
$53,774
$53,774
$53,774
$53,774
$53,774
$53,774
$53,774
$53,774
$53,774
$53,774
Bill Payments
$132,806
$3,668,016
$1,850,946
$2,222,911
$1,867,189
$2,040,313
$1,827,442
$1,898,330
$1,996,185
$1,883,378
$1,911,190
$2,379,772
Subtotal Spent on Operations
$186,580
$3,721,790
$1,904,720
$2,276,685
$1,920,963
$2,094,087
$1,881,216
$1,952,104
$2,049,959
$1,937,152
$1,964,964
$2,433,546
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$4,833
$4,833
$4,833
$4,833
$4,833
$4,833
$4,833
$4,833
$4,833
$4,833
$4,833
$4,833
Other Liabilities Principal Repayment
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Long-term Liabilities Principal

Repayment
$0
$27,750
$27,750
$27,750
$27,750
$27,750
$27,750
$27,750
$27,750
$27,750
$27,750
$27,750
Purchase Other Current Assets
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
$225,000
$225,000
$225,000
$225,000
$225,000
$225,000
$225,000
$225,000
$225,000
$225,000
$225,000
$225,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$421,413
$3,984,373
$2,167,303
$2,539,268
$2,183,546
$2,356,670
$2,143,799
$2,214,687
$2,312,542
$2,199,735
$2,227,547
$2,696,129
Net Cash Flow
$4,558,683
($1,835,317)
$139,001
($364,004)
$31,030
($246,926)
($47,159)
($65,631)
($202,798)
($103,095)
$144,277
($494,657)
Cash Balance
$5,552,943
$3,717,626
$3,856,626
$3,492,622
$3,523,653
$3,276,727
$3,229,568
$3,163,937
$2,961,139
$2,858,044
$3,002,321
$2,507,664
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Subtotal Cash from Operations
Additional Cash Received
Sales Tax, VAT, HST/GST Received
0.00%
New Long-term Liabilities
Subtotal Cash Received
Expenditures
Expenditures from Operations
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out
Principal Repayment of Current

Borrowing
Purchase Long-term Assets
Dividends
Subtotal Cash Spent
Pro Forma Balance Sheet
Assets
Starting
Balances
Current Assets
Cash
$994,260
$5,552,943
$3,717,626
$3,856,626
$3,492,622
$3,523,653
$3,276,727
$3,229,568
$3,163,937
$2,961,139
$2,858,044
$3,002,321
$2,507,664
Inventory
$355,200
$2,028,840
$1,912,240
$2,052,160
$1,935,560
$1,970,540
$1,877,260
$1,865,600
$1,912,240
$1,877,260
$1,865,600
$2,110,460
$1,958,880
$243,936
$248,936
$253,936
$258,936
$263,936
$268,936
$273,936
$278,936
$283,936
$288,936
$293,936
$298,936
$303,936
$1,593,396
$7,830,719
$5,883,802
$6,167,722
$5,692,118
$5,763,129
$5,427,923
$5,374,104
$5,360,113
$5,127,335
$5,017,580
$5,411,717
$4,770,480
Long-term Assets
$521,650
$746,650
$971,650
$1,196,650
$1,421,650
$1,646,650
$1,871,650
$2,096,650
$2,321,650
$2,546,650
$2,771,650
$2,996,650
$3,221,650
$100,000
$118,000
$136,000
$154,000
$172,000
$190,000
$208,000
$226,000
$244,000
$262,000
$280,000
$298,000
$316,000
$421,650
$628,650
$835,650
$1,042,650
$1,249,650
$1,456,650
$1,663,650
$1,870,650
$2,077,650
$2,284,650
$2,491,650
$2,698,650
$2,905,650
Long-term Assets
Total Assets
$2,015,046
$8,459,369
$6,719,452
$7,210,372
$6,941,768
$7,219,779
$7,091,573
$7,244,754
$7,437,763
$7,411,985
$7,509,230
$8,110,367
$7,676,130
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
$8,435
$3,606,760
$1,776,433
$2,160,879
$1,798,931
$1,979,476
$1,764,281
$1,831,660
$1,933,419
$1,820,231
$1,831,254
$2,318,158
$1,786,801
$58,000
$53,167
$48,334
$43,501
$38,668
$33,835
$29,002
$24,169
$19,336
$14,503
$9,670
$4,837
$4
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Subtotal Current Liabilities
$66,435
$3,659,927
$1,824,767
$2,204,380
$1,837,599
$2,013,311
$1,793,283
$1,855,829
$1,952,755
$1,834,734
$1,840,924
$2,322,995
$1,786,805
$402,000
$3,102,000
$3,074,250
$3,046,500
$3,018,750
$2,991,000
$2,963,250
$2,935,500
$2,907,750
$2,880,000
$2,852,250
$2,824,500
$2,796,750
Total Liabilities
$468,435
$6,761,927
$4,899,017
$5,250,880
$4,856,349
$5,004,311
$4,756,533
$4,791,329
$4,860,505
$4,714,734
$4,693,174
$5,147,495
$4,583,555
Paid-in Capital
$525,000
$525,000
$525,000
$525,000
$525,000
$525,000
$525,000
$525,000
$525,000
$525,000
$525,000
$525,000
$525,000
$85,985
$1,021,611
$1,021,611
$1,021,611
$1,021,611
$1,021,611
$1,021,611
$1,021,611
$1,021,611
$1,021,611
$1,021,611
$1,021,611
$1,021,611
$935,626
$150,831
$273,823
$412,881
$538,809
$668,857
$788,429
$906,814
$1,030,648
$1,150,640
$1,269,445
$1,416,261
$1,545,964
Total Capital
$1,546,611
$1,697,442
$1,820,434
$1,959,492
$2,085,420
$2,215,468
$2,335,040
$2,453,425
$2,577,259
$2,697,251
$2,816,056
$2,962,872
$3,092,575
Total Liabilities and Capital
$2,015,046
$8,459,369
$6,719,452
$7,210,372
$6,941,768
$7,219,779
$7,091,573
$7,244,754
$7,437,763
$7,411,985
$7,509,230
$8,110,367
$7,676,130
Net Worth
$1,546,611
$1,697,442
$1,820,434
$1,959,492
$2,085,420
$2,215,468
$2,335,040
$2,453,425
$2,577,259
$2,697,251
$2,816,056
$2,962,872
$3,092,575
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
10
11
12
14.00%
14.00%
14.00%
14.00%
14.00%
14.00%
14.00%
14.00%
14.00%
14.00%
14.00%
14.00%
9.00%
9.00%
9.00%
9.00%
9.00%
9.00%
9.00%
9.00%
9.00%
9.00%
9.00%
9.00%
47.00%
47.00%
47.00%
47.00%
47.00%
47.00%
47.00%
47.00%
47.00%
47.00%
47.00%
47.00%
Liabilities and Capital
Current Liabilities
Accounts Payable
Current Borrowing
Other Current Liabilities
Retained Earnings
Earnings
General Assumptions
Plan Month
Current Interest
Rate
Long-term Interest
Rate
Tax Rate
Other

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Okyna Rempah Bali Agro

Br. Kayuambua, Bangli, Bali - Indonesia

Increase production and sale from 78,000/60kg bags per year to

1.3 Keys to Success

Establishing and maintaining working relationships and contractual

2.1 Company Ownership

2.2 Company History

Other Current Assets

Total Current Assets

Total Long-term Assets

Other Current Liabilities (interest free)

Total Current Liabilities

Total Capital and Liabilities

2.3 Company Locations and Facilities

3.1 Competitive Comparison

3.2 Sales Literature

Market Analysis Summary

4.1 Market Segmentation

Market research suggests that there are approximately 100 importers of

4.2 Strategy and Implementation Summary

5.1 Distribution Strategy

5.2 Marketing Programs

5.3 Pricing Strategy

5.4 Sales Strategy

5.4.1 Sales Forecast

reach maximum for production capacity in 2013 representing a large growth

Direct Unit Costs

Import and Export

6.1 Management Team

7.1 Break-even Analysis

Average Per-Unit Variable Cost

Estimated Monthly Fixed Cost

7.2 Important Assumptions

7.3 Key Financial Indicators

7.4 Projected Profit and Loss

Gross Margin Yearly

Pro Forma Profit and Loss

Direct Cost of Sales

Other Costs of Sales

Total Cost of Sales

Sales and Marketing Payroll

Other Sales and Marketing Expenses

Other General and Administrative

Total Sales and Marketing Expenses

Total General and Administrative

Profit Before Interest and Taxes

7.5 Projected Cash Flow

Pro Forma Cash Flow

Sales Tax, VAT, HST/GST Received

New Current Borrowing

New Other Liabilities (interest-free)

Sales of Other Current Assets

Sales of Long-term Assets

New Investment Received

New Long-term Liabilities

Subtotal Cash Received

Net Cash Flow

7.6 Projected Balance Sheet

Pro Forma Balance Sheet

Other Current Assets

Total Long-term Assets

Other Current Liabilities

Total Liabilities and Capital