5-YEAR FINANCIAL PLAN

PAYTEL

FORECASTED REVENUE
Units sold
annually

Average
price per unit

Annual revenue
per product

Bulk sms

18250000

30.00

547,500,000.00

Bill payments

3650000

200.00

730,000,000.00

shortcode

1825000

100.00

182,500,000.00

Ussd gateway

365000

200.00

73,000,000.00

Airtime purchases

3650000

1,000.00

3,650,000,000.00

TOTAL OF FORECASTED REVENUE

5,183,000,000.00

COST OF GOODS SOLD

Expected
gross margin

Annual cost of
goods sold

Bulk sms

15%

82,125,000.00

Bill payments

100%

730,000,000.00

Ussd gateway

100%

73,000,000.00

shortcode

30%

1,095,000,000.00

Airtime purchases

5%

182,500,000.00

TOATL COST OF GOODS SOLD

2,162,625,000.00

ANNUAL MAINTENANCE, REPAIR AND OVERHAUL

Factor (%) on capital equipment

15%

ASSET DEPRECIATION
Number of Years

TAX
Annual Tax Rate

18%

INFLATION
Annual Inflation Rate

7%

PRODUCT PRICE INCREASE

Annual Price Increase

0%

FUNDING
Loan Amount
Annual interest rate
Term of loan (months)

100,000,000.00
0.00%
60

Monthly rate
Payment
Total Amount Payable

0.00%
1,666,666.67
100,000,000.00

PROFIT AND LOSS PROJECTION

PAYTEL

PROFIT AND LOSS ASSUMPTION

Year 1

Year 2

Year 3

Annual cumulative price (revenue) increase

0.00%

0.10%

0.20%

Annual cumulative inflation (expense) increa

0.00%

6.60%

13.20%

Year 1

Year 2

Year 3

INCOME
Revenue
Bulk sms

547,500,000.00

548,047,500.00

549,143,595.00

Bill payments

730,000,000.00

730,730,000.00

732,191,460.00

Ussd gateway

73,000,000.00

73,073,000.00

73,219,146.00

3,650,000,000.00

3,653,650,000.00

3,660,957,300.00

5,000,500,000.00

5,005,500,500.00

5,015,511,501.00

82,125,000.00

87,545,250.00

99,101,223.00

Bill payments

730,000,000.00

778,180,000.00

880,899,760.00

Ussd gateway

73,000,000.00

77,818,000.00

88,089,976.00

182,500,000.00

194,545,000.00

220,224,940.00

2,162,625,000.00

2,305,358,250.00

2,609,665,539.00

2,837,875,000.00

2,700,142,250.00

2,405,845,962.00

Airtime purchases
Total revenue
Cost of Sales
Bulk sms

Airtime purchases
Cost of goods sold

Gross Profit
Non-Operation Income
Rental

###

Interest income

###

Loss (gain) on sale of assets

1,000.00

Other income (specify)

Toatal Non-Operation Income

TOTAL INCOME

20,000,000.00

30,000,000.00

40,000,000.00

20,000,000.00

30,000,000.00

40,001,000.00

2,857,875,000.00

2,730,142,250.00

2,445,846,962.00

36,000,000.00

38,376,000.00

43,441,632.00

EXPENSES
Operating expenses
Sales and marketing

Depreciation
Insurance
Payroll and Payroll Tax
Property taxes

6,000.00

6,396.00

6,792.00

1,000,000.00

1,066,000.00

1,206,712.00

36,000,000.00

38,376,000.00

43,441,632.00

Maintenance, repair, and overhaul

6,000,000.00

1,599.00

1,698.00

Utilities

7,300,000.00

7,781,800.00

8,808,997.60

Administrative fees

Interest expense on long-term debt

Other

5,000,000.00

5,330,000.00

6,033,560.00

91,306,000.00

90,937,795.00

102,941,023.60

Unexpected Expenses

5,000,000.00

5,000,000.00

###

Other expenses

1,000,000.00

1,000,000.00

5,000,000.00

6,000,000.00

6,000,000.00

10,000,000.00

97,306,000.00

96,937,795.00

112,941,023.60

496,902,420.00

473,976,801.90

419,923,068.91

Total operating expenses

Non-Recurring Expenses

Total Non-Recurring Expenses

TOTAL EXPENSES
TAXES
Income Tax
Other Tax (specify)

TOTAL TAXES
NET PROFIT

###

496,902,420.00

473,976,801.90

419,923,068.91

2,263,666,580.00

2,159,227,653.10

1,912,982,869.49

Year 4

Year 5

0.30%

0.40%

19.80%

26.40%

Year 4

Year 5

550,791,025.79

552,994,189.89

734,388,034.38

737,325,586.52

73,438,803.44

73,732,558.65

3,671,940,171.90

3,686,627,932.59

5,030,558,035.50

5,050,680,267.65

118,723,265.15

150,066,207.15

1,055,317,912.48

1,333,921,841.37

105,531,791.25

133,392,184.14

263,829,478.12

333,480,460.34

3,126,379,315.72

3,951,743,455.07

1,904,178,719.78

1,098,936,812.57

50,000,000.00

60,000,000.00

50,000,000.00

60,000,000.00

1,954,178,719.78

1,158,936,812.57

52,043,075.14

65,782,446.97

7,188.00

7,584.00

1,445,640.98

1,827,290.19

52,043,075.14

65,782,446.97

1,797.00

1,896.00

10,553,179.12

13,339,218.41

7,228,204.88

9,136,450.97

123,322,160.25

155,877,333.52

5,000,000.00

5,000,000.00

5,000,000.00

5,000,000.00

10,000,000.00

10,000,000.00

133,322,160.25

165,877,333.52

327,754,180.72

178,750,706.23

327,754,180.72

178,750,706.23

1,493,102,378.81

814,308,772.82

BALANCE SHEET PROJECTION

paytel

ASSETS
Current Assets
Cash and short-term investments

Initial balance
50,000,000.00

Year 1

Year 2

2,293,772,580.00

4,432,956,629.10

Accounts receivable

Total inventory

Prepaid expenses

Deferred income tax

Other current assets

Total current assets

Property and Equipment

5,000.00

5,000.00

5,000.00

50,005,000.00

2,293,777,580.00

4,432,961,629.10

Year 1

Year 2

Initial balance

Buildings

20,000.00

20,000.00

20,000.00

Land

10,000.00

10,000.00

10,000.00

Capital improvements
Machinery and equipment

10,000.00

Less Accumulated depreciation expense

Total Property and Equipment

Other Assets

40,000.00

Initial balance

10,000.00

10,000.00

6,000.00

12,396.00

34,000.00

27,604.00

Year 1

Year 2

Goodwill

Deferred income tax

Long-term investments

Deposits

Other long-term assets

Total Other Assets

TOTAL ASSETS

50,045,000.00

2,293,811,580.00

4,432,989,233.10

LIABILITIES
Current Liabilities

Initial balance

Year 1

Year 2

Accounts payable

Accrued expenses

Notes payable/short-term debt

Capital leases

Other current liabilities

Total Current Liabilities

Debt

Initial balance

Year 1

Year 2

Long-term debt/loan

100,000,000.00

80,000,000.00

60,000,000.00

Other long-term debt

100,000.00

200,000.00

150,000.00

100,100,000.00

80,200,000.00

60,150,000.00

Total Debt
Other Liabilities
Other liabilities (vps servers)
Other liabilities (specify)
Total Other Liabilities

TOTAL LIABILITIES

Initial balance

Year 1

Year 2

4,800,000.00

4,800,000.00

4,800,000.00

4,800,000.00

4,800,000.00

4,800,000.00

104,800,000.00

84,800,000.00

64,800,000.00

EQUITY
Initial balance

Year 1

Year 2

Owner's equity (common)

100,000,000.00

100,000,000.00

100,000,000.00

Paid-in capital

100,000,000.00

100,000,000.00

100,000,000.00

Preferred equity

Retained earnings

2,263,666,580.00

4,422,894,233.10

TOTAL EQUITY

200,000,000.00

2,463,666,580.00

4,622,894,233.10

TOTAL LIABILITIES AND EQUITY

304,800,000.00

2,548,466,580.00

4,687,694,233.10

Year 3

Year 4

6,325,970,290.59

Year 5

7,799,129,857.40

8,593,371,214.22

5,000.00

5,000.00

5,000.00

6,325,975,290.59

7,799,134,857.40

8,593,376,214.22

Year 3

Year 4

Year 5

20,000.00

20,000.00

20,000.00

10,000.00

10,000.00

10,000.00

10,000.00

10,000.00

10,000.00

19,188.00

26,376.00

33,960.00

20,812.00

13,624.00

6,040.00

Year 3

Year 4

Year 5

6,325,996,102.59

Year 3

7,799,148,481.40

Year 4

8,593,382,254.22

Year 5

Year 3

Year 4

Year 5

40,000,000.00

20,000,000.00

175,000.00

225,000.00

150,000.00

40,175,000.00

20,225,000.00

150,000.00

Year 3

Year 4

Year 5

4,800,000.00

4,800,000.00

4,800,000.00

4,800,000.00

4,800,000.00

4,800,000.00

44,800,000.00

24,800,000.00

4,800,000.00

Year 3

Year 4

Year 5

100,000,000.00

100,000,000.00

100,000,000.00

100,000,000.00

100,000,000.00

100,000,000.00

6,335,877,102.59

7,828,979,481.40

8,643,288,254.22

6,535,877,102.59

8,028,979,481.40

8,843,288,254.22

6,580,677,102.59

8,053,779,481.40

8,848,088,254.22

CASH FLOW PROJECTION

Company Name
Operating activities

Year 1

Net income
Depreciation

Year 2

Year 3

2,263,666,580.00

2,159,227,653.10

1,912,982,869.49

6,000.00

6,396.00

6,792.00

Accounts receivable

Inventories

Accounts payable

Amortization

Other liabilities

Other operating cash flow items

Total operating activities

2,263,672,580.00

Investing activities

Year 1

2,159,234,049.10
Year 2

Year 3

Capital expenditures

Acquisition of business

Sale of fixed assets

Other investing cash flow items

Total investing activities

Financing activities
Long-term debt/financing

Year 1
-

1,912,989,661.49

###
-

Year 2

19,900,000.00 -

1,000.00

1,000.00
Year 3

20,050,000.00 -

19,975,000.00

Preferred stock

Total cash dividends paid

Common stock

Other financing cash flow items

Total financing activities

Cumulative cash flow
Beginning cash balance
Ending cash balance

19,900,000.00 -

20,050,000.00 -

19,975,000.00

2,243,772,580.00

2,139,184,049.10

1,893,013,661.49

50,000,000.00

2,293,772,580.00

4,432,956,629.10

2,293,772,580.00

4,432,956,629.10

6,325,970,290.59

Year 4

Year 5

1,493,102,378.81

814,308,772.82

8,643,288,254.22

7,188.00

7,584.00

33,960.00

1,493,109,566.81
Year 4

814,316,356.82

8,643,322,214.22

Year 5

Total

Year 4
-

Total

Year 5

19,950,000.00 -

1,000.00

1,000.00
Total

20,075,000.00 -

99,950,000.00

19,950,000.00 -

20,075,000.00 -

1,473,159,566.81

794,241,356.82

6,325,970,290.59

7,799,129,857.40

7,799,129,857.40

8,593,371,214.22

99,950,000.00
8,543,371,214.22

LOAN AMORTIZATION SCHEDULE

Company Name
NOTE: Loan Amortization calculations are limited for up to 30 years (360 months).

MONTH
1

BALANCE
SCHEDULED PAYMENT
100,000,000.00
100,000,000.00
1,666,666.67

PRINCIPAL

INTEREST

1,666,666.67

98,333,333.33

1,666,666.67

1,666,666.67

96,666,666.67

1,666,666.67

1,666,666.67

95,000,000.00

1,666,666.67

1,666,666.67

93,333,333.33

1,666,666.67

1,666,666.67

91,666,666.67

1,666,666.67

1,666,666.67

90,000,000.00

1,666,666.67

1,666,666.67

88,333,333.33

1,666,666.67

1,666,666.67

86,666,666.67

1,666,666.67

1,666,666.67

10

85,000,000.00

1,666,666.67

1,666,666.67

11

83,333,333.33

1,666,666.67

1,666,666.67

12

81,666,666.67

1,666,666.67

1,666,666.67

13

80,000,000.00

1,666,666.67

1,666,666.67

14

78,333,333.33

1,666,666.67

1,666,666.67

15

76,666,666.67

1,666,666.67

1,666,666.67

16

75,000,000.00

1,666,666.67

1,666,666.67

17

73,333,333.33

1,666,666.67

1,666,666.67

18

71,666,666.67

1,666,666.67

1,666,666.67

19

70,000,000.00

1,666,666.67

1,666,666.67

20

68,333,333.33

1,666,666.67

1,666,666.67

21

66,666,666.67

1,666,666.67

1,666,666.67

22

65,000,000.00

1,666,666.67

1,666,666.67

23

63,333,333.33

1,666,666.67

1,666,666.67

24

61,666,666.67

1,666,666.67

1,666,666.67

25

60,000,000.00

1,666,666.67

1,666,666.67

26

58,333,333.33

1,666,666.67

1,666,666.67

27

56,666,666.67

1,666,666.67

1,666,666.67

28

55,000,000.00

1,666,666.67

1,666,666.67

29

53,333,333.33

1,666,666.67

1,666,666.67

30

51,666,666.67

1,666,666.67

1,666,666.67

31

50,000,000.00

1,666,666.67

1,666,666.67

32

48,333,333.33

1,666,666.67

1,666,666.67

33

46,666,666.67

1,666,666.67

1,666,666.67

34

45,000,000.00

1,666,666.67

1,666,666.67

35

43,333,333.33

1,666,666.67

1,666,666.67

36

41,666,666.67

1,666,666.67

1,666,666.67

37

40,000,000.00

1,666,666.67

1,666,666.67

38

38,333,333.33

1,666,666.67

1,666,666.67

39

36,666,666.67

1,666,666.67

1,666,666.67

40

35,000,000.00

1,666,666.67

1,666,666.67

41

33,333,333.33

1,666,666.67

1,666,666.67

42

31,666,666.67

1,666,666.67

1,666,666.67

43

30,000,000.00

1,666,666.67

1,666,666.67

44

28,333,333.33

1,666,666.67

1,666,666.67

45

26,666,666.67

1,666,666.67

1,666,666.67

46

25,000,000.00

1,666,666.67

1,666,666.67

47

23,333,333.33

1,666,666.67

1,666,666.67

48

21,666,666.67

1,666,666.67

1,666,666.67

49

20,000,000.00

1,666,666.67

1,666,666.67

50

18,333,333.33

1,666,666.67

1,666,666.67

51

16,666,666.67

1,666,666.67

1,666,666.67

52

15,000,000.00

1,666,666.67

1,666,666.67

53

13,333,333.33

1,666,666.67

1,666,666.67

54

11,666,666.67

1,666,666.67

1,666,666.67

55

10,000,000.00

1,666,666.67

1,666,666.67

56

8,333,333.33

1,666,666.67

1,666,666.67

57

6,666,666.67

1,666,666.67

1,666,666.67

58

5,000,000.00

1,666,666.67

1,666,666.67

59

3,333,333.33

1,666,666.67

1,666,666.67

60

1,666,666.67

1,666,666.67

1,666,666.67

NOTES AND ASSUMPTIONS

paytel
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