Get more investment project on the Merar site (http://www.merar.com) We aim to provide the market with quality products that will save the consumer time and money. With the drive to Go Green and save energy, these products will help the consumer achieve their goals.

1. Prepared for www.merar.com
HARVER BUSINESS PLAN

2. Business Plan

3. Executive Summary
• Seawave aims to provide the market with quality products
that will save the consumer time and money.
• The products in our portfolio are new generation innovative
and use the latest technology to provide electricity saving,
time saving and ultimately a water saving.
• With the drive to Go Green and save energy, these products
will help the consumer achieve their goals.
• Seawave is a company that is consistently looking for new
products that will further the wishes and requirements of our
consumers in South Africa to save energy and water.

4. The Team
• This business is a family run sole proprietorship.
• The focus is on the sourcing quality products that help to
save energy and money for the consumer.
• Lesley – Comes from a PA back round and also has run family
businesses including Petrol stations and Distribution
companies.
• Gary – Is in the Aviation engineering field and has also been
involved in family businesses in the Fuel retail and consumer
products distribution.

5. Opportunities
• There is a potential market of 200 000 units per annum.
• Realistically a market share of 25% could be attainable.
• The largest task will be changing the mind set of the
consumer.
• There will be a need to educate the consumer on why these
products save time, energy and water.
• This will be done through advertising and demonstrations

6. Business Concept
• Our products use magnetic induction to heat the water.
• With the water heaters this is achieved by magnetic induction
resistance that heats whole storage tank. This results in the
water being heated quicker than a conventional heater.
• With the Induction cookers, the concept is the same but the
magnetic resistance is used to heat the pot and then the
product in the pot. This again results in the product in the pot
heating (cooking)a lot quicker.
• Both of these products will save time and ultimately money

7. Competition
• The competition comes in various forms.
• 1) The traditional water heater companies.
• 2) Solar heating companies.
• 3) Heat pump technology companies.
• 4) Instant water heating companies.
• Solar and Heat pumps are very costly and are not ideal to all areas of SA.
• Instant water heaters are suited to single use and therefore a unit for each
hot water tap outlet is needed.
• Our product is competitively priced to the traditional water heater and so
is a product that the consumer can see immediate results in savings.

8. Comparisons
Avg. yearly
Type Cost Rebate usage at % Saving Cost Cost
Rand R0.65 1 year 5 years
Electric water
heater R5 000 R2 340* R7 340 R14 700
Solar water
heater R12 000 R4500 R650* 67 R8 150 R10 750
Heat pump R9 000 R936 60 R9 936 R13 680
Induction
water heater R5 000 TBA R1 638 30 R6 638 R13 190
* Info from Eskom web site Note: All costs are average and not official

9. Marketing
• Marketing will be based on securing agents for the different
areas in SA and countries in Africa.
• These agents will then be assisted in advertising in the print
media, on the internet, through displays on shows and at
shopping centres and mail shots.
• We will apply to be included on Master Builders Association
data base.

10. Goals and Objectives
Below is a five year goal for market share
Market share
100%
Sales/annum
80%
60%
40% Total sales
20% Seawave sales
0%
2012 2013 2014 2015 2016
6% 15% 20% 25% 25%

11. FINANCIAL PLAN
• The financial plan in the next slide is based on the market share graph
above.
• The yearly costs include an inflation rate of 10%
• The ideal capital requirement is USD300 000.00
• The minimum capital requirement is USD200 000.00
• This minimum capital will pay for removal of existing stock from bond
store, and much needed advertising campaign to grow sales.
• The loan is based on a 30 month repayment term with an interest rate
of 10%.

12. Five Year Financial Plan
SEAWAVE DISTRIBUTORS
5 Year Operating Budget Monthly Monthly
2012/13 2013/14 2014/15 2015/16 2016/17 Totals 2012 2013
Average price of units sold R 1,660 R 1,743 R 1,830 R 1,922 R 2,018 R 1,660 R 1,743
Total units sold 12,000 30,000 40,000 50,000 50,000
R 182,000.00 1,000 2,500
R
INCOME R 19,920,000 R 52,290,000 R 73,206,000 R 96,082,875 R 100,887,019 342,385,894 R 1,660,000 R 4,357,500
R
EXPENDITURE R 18,825,000 R 47,883,000 R 66,704,550 R 87,291,311 R 91,722,760 312,426,621 R 1,568,750 R 3,990,250
Operating Profit R 1,095,000 R 4,407,000 R 6,501,450 R 8,791,564 R 9,164,259 R 29,959,273 R 91,250 R 367,250
Profit Incentive Fee @ 3% R 32,850 R 132,210 R 195,044 R 263,747 R 274,928 R 898,778 R 2,738 R 11,018
Replacement Reserve @ 2% R 21,900 R 88,140 R 130,029 R 175,831 R 183,285 R 599,185 R 1,825 R 7,345
Net Trading Profit before
Interest R 1,040,250 R 4,186,650 R 6,176,378 R 8,351,986 R 8,706,046 R 28,461,309 R 86,688 R 348,888
Capatil Outstanding R 1,500,000 R 939,500 R 322,950 R0 R0
Interest at 10% R 150,000 R 93,950 R 32,295 R0 R0
Total R 1,650,000 R 1,033,450 R 355,245 R0 R0
Repayment Value R 710,500 R 710,500 R 355,245 R0 R0 R 1,776,245 R 59,208 R 59,208
Oustanding Capatil carried
forward R 939,500 R 322,950 R0 R0 R0
Profit before Taxation R 329,750 R 3,476,150 R 5,821,133 R 8,351,986 R 8,706,046 R 27,479 R 289,679

13. 2012 2013 2014 2015 2016 Totals
EXPENDITURE R 18,825,000 R 47,883,000 R 66,704,550 R 87,291,311 R 91,722,760 R 312,426,621 R 1,568,750 R 3,990,250
Cost of units ea. R 1,485 R 1,559 R 1,637 R 1,719 R 1,805 R 8,206 R 1,485 R 1,634
Cost of units R 17,820,000 R 46,777,500 R 65,488,500 R 85,953,656 R 90,251,339 R 306,290,995 R 1,485,000 R 3,898,125
Rent R 12,000 R 13,200 R 14,520 R 15,972 R 17,569 R 73,261 R 1,000 R 1,100
Telephone Cost of Sales R 12,000 R 13,200 R 14,520 R 15,972 R 17,569 R 73,261 R 1,000 R 1,100
Insurance R 12,000 R 13,200 R 14,520 R 15,972 R 17,569 R 73,261 R 1,000 R 1,100
Sundry Cost of Sales R 6,000 R 6,600 R 7,260 R 7,986 R 8,785 R 36,631 R 500 R 550
Administration & General R 12,000 R 13,200 R 14,520 R 15,972 R 17,569 R 73,261 R 1,000 R 1,100
Staff Payroll Costs R 687,000 R 755,700 R 831,270 R 914,397 R 1,005,837 R 4,194,204 R 57,250 R 62,975
Unit Marketing Costs R 60,000 R 66,000 R 72,600 R 79,860 R 87,846 R 366,306 R 5,000 R 5,500
Vechile costs R 180,000 R 198,000 R 217,800 R 239,580 R 263,538 R 1,098,918 R 15,000 R 16,500
Utilities R 24,000 R 26,400 R 29,040 R 31,944 R 35,138 R 146,522 R 2,000 R 2,200

14. COMPLIANCE
• NRCS certified (supplied)
• SANS compliant (Test Africa report supplied)
• ESKOM tested

15. Resource Requirements
• Requirements for the following resources:
– Personnel - Seawave is a family run business.
– Technology - There will be a need to travel to the factory in China at
least once a year to gain new development knowledge.
– Finances - As mentioned in the Finance plan, a capital investment of
USD300 000.00 would be needed to secure the business.
– Distribution – Seawave is in the process of signing agents in the
various provinces in South Africa and we are actively looking for
agents in the SADC region.
– Promotion – This will be done through the print media and at various
home expo and improvement shows within Southern Africa.

16. Risks and Rewards
• The only risk for this business will be the unlikely prospect of
sales not reaching the full potential. All feedback has been
very positive and we believe these products will sell
successfully.
• The possibility of these product exceeding expectations is high
and the resultant rewards will be very good.
• All funding for the start up operations will be paid back well
within the allotted time frame of 30 months.

17. Key Issues
• Near term
– The most important decision on the success of this business is the
funding to allow for continuity of stock holding and marketing.
– If this is not made available then there is a very likely chance that the
opportunity will be made available to someone else..
• Long term
– The long term issues will be for funding availability to expand the
products in our range .
– If this is not available then the business will stagnate and not grow
with new products coming out on the market.