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Prepared By Giorgio Enrico Del Celo
Marketing Plan
A MARKETING AND STRATEGIC PLAN PREPARED
WITH THE COMPANY GROWING IN MIND …
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Prepared By Giorgio Enrico Del Celo
Market Outlook
Key Points of the Global Maritime Industry
1. Asia Pacific is expected to be the largest due to China and India growth (*)
2. Navigation services are expected to be in the highest demand among services
3. Container handling should emerge as leading market by value
4. Commodity shipping is decreasing in value due to drops in prices
5. Increased shipping data should help shipping companies
6. Massive global demographic shifts should impact shipping
1. Emerging middle class
2. Technologyincreases – maritime services should embrace new technology to attract young professionals
7. China is projected to be the largest maritime market by 2030
8. China and emerging countries should expect the most growth in shipbuilding and deliveries (*)
9. Oil and natural gas is expected to account for 60% of the global demand for energy in 2030 (**)
1. Big opportunities for companies in the offshore oil and gas and renewable energy industries
10. Offshore oilproductions are expecting to grow -37% by 2018, up from 35% in 2010 driven by contribution from Deepwater (>600 feet)
11. Global Deepwater Capex is forecasting to reach $65 billion by 2016 indicating a CAGR of ~25%
12. Deep water activity is mainly carried out in the “Golden Triangle “(West Africa, US Gulf and Brazil)
(*) Commercial shipping, fleet ownership and shipbuilding
The volume of seaborne trade will double from nine billion tonnes per annum to somewhere between 9 and 24bn tonnes by 2030.
China will play a key role in 2030 as the emerging maritime superpower in shipping. China will see the largest growth in comm ercial
fleet ownership, rivalling Greece and the rest of the European countries combined. China will become the world’s primary maritime
market, leading in seaborne trade, shipbuilding and vertically integrated ownership and ship management. The economic
development of India follows closelybehind China, and it is expected to become a giant driver of global trade in an order of magnitude
similar to China.
The total deliveries of bulk carriers, tankers, LNG carriers and container ships across the world will remain at around 2010 levels.
China and emerging countries will determine the shipbuilding market landscape in 2030. Japan and South Korea, however, will lose
their market share. South Korea’s market share will fall and Japan will play a rapidly declining role in shipbuilding when compared
with the market leaders. The number of deliveries from the emerging countries will increase: Vietnam, Brazil, India, and Philippines
could be the leaders. Brazil and India will see the largest percentage increase, while Vietnam will gain the largest volume.
(**) Offshore Energy
Oil and natural gas is expected to account for 60% of global demand for energy in 2030. Advances in technology, underpinned by innovation,
research and development will be the keys to meeting the growing demand for energy from more diverse sources. The number of offshore
platforms and renewable energy devices required to meet global demand will grow significantly. This indicates growing challenge s and
opportunities to produce offshore oil and gas, and offshore renewable energy. There will be tremendous growth opportunities for participants
in the offshore oil and gas and renewable industries
Key Points of the Nigeria Maritime Industry
1. The maritime industry is a key part of the growth of the economy
2. Nigeria’s oil production is expected to double by 2016 to 4 million barrels a day – 5th largest producer of oil after Russia
3. Dangerous ports and waters cause fear in shipping companies
a. Rise in private security companies
b. Increase in legislation/safety would help bring more trade to Nigeria/Africa
4. Inefficient ports also decrease traffic
a. Bad burocracy
b. Low shipbuilding and repair capabilities – taking advantage of this situation could be very profitable
5. “There are examples of African attempts and investments in developing the maritime sector, such as the Memorandum of Understa nding
signed byNigeria and South Africa accordingto whichDurban-based SouthernAfricanShipyards (SAS)will finance the development ofmodern
shipyards in Nigeria and operate them with Nigerian labour and local content as much as feasible. The agreement also includes the
establishment of maritime engineering technology transfer program from South Africa to Nigeria. Simultaneously the Nigerian G overnment
has revealedplans to revive the Nigerianmaritime sector bybuilding a new shipyard withprivate sector participation (Ventures Africa 2013).
In addition to generatingemployment and economic growth to the country, the project is expectedto provide increasedtraining possibilities
for the cadets of the Maritime Academy of Nigeria (MAN) which already utilizes the country’s great labour pool in educating seafarers and
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Prepared By Giorgio Enrico Del Celo
maritime industry professionals even for foreign vessels. Moreover, developing the maritime sector could provide a catalyst to diversify the
oil-driven economy.
6. Partnerships are a key to the future of the shipping industry growth in Africa
7. China is increasingly interested in and contributing to the maritime sector (for example Lekki Free Zone)
8. Some legislation and organizations are developing better standards within Africa
a. Legislation and laws that restrict international vessels could help local companies expand and increase the economy
9. Nigeria and Belgium may be increasing trade between them
10. Lack of implementation of policies may be the real reason the maritime industry is suffering/not growing as e xpected
11. Nigeria lacks international shipping vessels
a. Foreign vessels carry Nigeria’s oil
12. Coastal areas are not currently able to support traffic
a. Too shallow for large/average ships
b. Too small of ports for traffic
13. Multimodalism and intermodalism should alleviate traffic on ports and help streamline shipping
a. Direct transfers from train/plane/truck to boats and vice versa
b. This will also create other things such as warehouses, freight forwarding, etc
14. Extended port and customs hours should raise activities immensely – 24-hour operation
15. OSV to Rig ratio is expected to fall below 3.9 by 2-15 reflecting a tilt in market balance in favour of Owners
Incremental demandor OSV Activityit willcome from deep water project in Angola, NIGERIA and Ghana by July 201Market
Analysis and Opportunities
Due to the strong market andincrease in global salesIntegratedServices is speciallypositioned to take advantage of an attractive market opportunity.
Some specific opportunities are as follows;
Globally Opportunity
has the opportunityto further developand facilitate the development of the maritime industryin Africa, which has global implications. Opportunities
for include the following;
1. Partnerships directly with Chinese and India companies
2. Research into utilization of container shipping as a primary method of shipping
3. Implementation of big data in order to increase efficiency
4. Continuing to innovate technology and embrace new technologies
5. Increased dealings within the oil and gas and natural energy industries
Nigeria Opportunity
1. Acquisition of Nigerian international shipping vessels – this would take advantage of the crude oil market
2. Increase in security – push for reform, implementation and accountability, partnerships with private entities
3. Solidification of key partnerships – China, South Africa, Belgium
4. Creation of new intermodal shipping innovations – rail to sea to road
5. Acquisition of fleet of trucks for the transportations of containers, OOD cargoes and project cargoes
6. Implementations of use / offering services of bonded warehouse
7. Partnerships with shipping lines as well as other terminals for the implementation of the Bonded Terminal(s)
8. Implement proper penetration into the Oil & Gas Industry / Offshore
9. Freight types are mainly containerised cargoes, general cargoes, roll-on-roll-off cargoes and petroleum products.
10. General cargois mostlyhandledbyTinCan islandport;drycargo, containers byApapa port andliquidcargo byOkrika port in Port Harcourt.
11. Apapa port accounts for 40% of cargo throughout the Nigerian seaports.
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Prepared By Giorgio Enrico Del Celo
Marketing Plan
In mypoint of view, inorder to write a marketingplan, we need first to have clear inmindthe difference betweensales and revenues.
Sales and revenuesare related but different goals, and eachneeds its ownstrategy. Althoughthe tactics for eachmight be different, theyshould
complement each other. Understandinghowsales andrevenue are relatedandhowto balance the needto increase bothhelps marketingefficiently
and optimization ofprofits.
Sales vs.Revenues
The words “sales,” “revenue” and “income” have different meanings, andbecome confusing if usedas synonyms.
 “sales” refers to the number of units of your product you sell
 “revenues” refers to the total amount moneyyour sales generate
 “income” refers to your profit from those sales.
We shouldkeep these inmind when planningsales strategiesto strike the right balance for the business’s needs.
Understand what the Company is selling
It might sound funnyto askwhat a Freight andForwarding Companyis selling but most salespeople andMarketingManagers inF reight & Forwarding
Companies poorlyapproaches clients.
Does a Freight & Forwardingcompanysell "freight?” No.
Does a Freight & Forwardingcompanysell "transportation?” No.
A Freight andForwarder companysells:
 Organization
 Consolidation
 Coordination
Increase the Marketing
A solid wayto increasesales is to boost the market. Quantitydoesn’t necessarilymeanquality, so careful planning, test-marketing and monitoringthe
results maximizessales.
Even if there are fairlycompetent sales personnel, organizationmaybe handicappedinenhancing sales figures. This is because manysalespersonnel
employanoutdatedselling technique. For better market penetrationandto boost companysales teams shouldimplement a new, better selling
technique, suchas what follows;
 Marketplace researchshould be in place to learn which messagesspeakto the company’s target audience. (Targets include shipping companies
like Bourbon Interoil/Edison Cheust/Tankers Owners as well as Oil & Gas companies like Shell/Total/Mobil/CNL and more)
 Investigate the market reputation, financial position, businessvolume, and topandrelevant management for the targetedpotentialnew
customers mastering the 80/20 principle
 Phone calls and/or in-personmeetings withpotentialclients must be prepared ina more scientific and analytical way
 Monitoring andevaluatinganysales calls and/or meetings, andmaintaincomprehensive statistics to learnas much as possible about the target
market
 Run ads and promotions inlimitedlocations and checkthe results before spending the entire budget
 Incorporate processes to monitor marketing communications, such as electronic codes or website traffic statistics.
 Employthe viral marketingattempts to reachcurrent customers andnewcustomers. (Viral marketing is a p romotion that encouragespeopleto
share a message with others, passing it from personto personmuchlike a virus spreads)
 Offer giveaways of companyservices
Review Company Pricing Strategies
If the company’s service is price sensitive, special attentionshouldbe paid to pricing strategies. Find out what the competition is charging andraise or
lower companyprices based oncompanygoals.
Here’s three pricingscenarios:
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Prepared By Giorgio Enrico Del Celo
1. Lowering prices canincrease revenuesto make upfor lower margins.
2. Raisingprices cancreate a higher perceived value inthe minds of consumers andincrease margins.
3. Raisingprices canincrease your revenues without necessitating anincrease in sales.
It is verycrucial, however, to research the credit positionof the customer(s) in order to negotiate the right credit terms as per companyri sk
management policy. Also it is veryimportant to evaluate the servicesrenderedto the particular client. Are we giving them a 4PL service or just a
custom clearing service or a procurement or a delivery of spare?
Expand Company Distribution Channels
Changing and/or implementing where andhow the companysells products can significantlyboost salesandrevenues without requiringanyparticular
changes to the marketingor pricing. After a careful studyof the effects ofusing online selling (one example is FlexPort, an USA-basedcompany), direct
mail, andoutside sales reps (virtual assistant and/or outside partnership, etc) to project howeachmethodcanaffect your sales volumes, profit
margins andtotal profits. Insome cases, newdistribution channels require marketingsupport.
Diversify Offerings
For a mature companyas wellas a growingone, it might be time to addnew servicesto create exponential growth. Determine what products target
customers needthat the companydoes not currentlyoffer andsee if those are appropriate andprofitable services to add. Organizationalprocesses
might need to be refined or overhauled, or it maybe necessaryto combine oldproducts withnew ones.
This might initiallyresult ina decrease insales, but revenuesshouldbe higher if newservices/products cost more per sale.
Develop Relationships
"Everybody in the Company is a Marketing Manager”
Though salesare the responsibilityof the Sales & Marketing department, it is vitalthat everyone withinthe organization make an effort to generate
sales leads throughpersonal acquaintances. The more people that promote the service, the more potential sales andrevenue anorganizationcanget.
Every individual shouldmake at least four sales calls ona dailybasisto generate a minimum of five leads ina weekanda m inimum of25 target
customers in a year.
Above andbeyondvisiting the existing clients ona regular basis, there must be a minimum number of newpotentialclients to be visited.
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Prepared By Giorgio Enrico Del Celo
Strategic Plan
It is important to highlight that the best strategyis one that will set the business apart fromits competitors. While there's no magic formulafor sucha
strategy, there are keyfactors that will helpto determine what the strategyshouldbe. We need to know exactlywho the customers or target prospects
are, where they are located, what they want and need, and why, how, and when they need it.
Strategy will be fully implemented only when we are absolutely sure that our unique selling proposition is right.
Market conditions change at bewilderingspeed, because oftechnology, customers'tastes, fashions, trends, media influences, andsoon. If we want our
business to survive in the 21st century, we cannot standstill. What is unique todaybeingwidespreadtomorrow, andunwanted the dayafter that. The
vital ingredient ina trulydynamic marketing strategyis to strive continuallyto discover new andbetter ways to addvalue for customers, andkeepthe
proposition unique in the chosen market.
Nigeria has a total of elevenports and eight oilterminals organised inthree zones of Western, CentralandEastern. The central zone withits headquarters
in Warri and the Eastern zone with its headquarters in Port Harcourt are predominantly oil terminals, although Warri, Sapele, Koko, Port Harcourt,
Calabar and the Federal ocean terminal are not to be overlooked.
The new ocean port under construction in Lekki Free Zone and expected to be ready by 2019 , is a reality that need to be taken into serious business
consideration.
The importance ofthe seaports is attestedto bythe fact that approximately, 99% byvolume ofNigeria total imports andexports are sea-borne. Nigerian
ports control 60% of imports inWest and Central Africa. The seaports provide anoverwhelming economic advantage over all other modes oftransport
consideringthe huge tonnage ofgoods that can be carriedover longdistances. The ports have contributedto regionaleconomic integrationinthe West
African sub-region and have served as the major determinant of how economic activities are distributed. The maritime industry is a major long term
determinant of national growth.
Plans for marketing penetration:
 Clearing & Forwarding sector
According to Nigeria’s National Bureau of Statistics (NBS), imports from Asia accounted for 44.6 percent of Nigeria’s imports in 2015, while
imports from Europe and the Americas accounted for 33.6 percent and 14.1 percent, respectively.
Basedon revealed figures it is clear that a successful freight companyshouldseeknew clients within the Clearing andForwarding industry, such
as;
o Dangote
o Siemens
o Schneider
o Coscharis Group
o John Holt
Preferences of the above are to work with Freight and Forwarding Companies who can guarantee a full services package like D2D or 4PL services.
Strategy:
 Pursue a partnership with international F&F (*)
 Offer a FULL 4PL service including the procurement, pick pack, tracking, consolidations & de-consolidation, importation(sea andair
(**) and clearance through the Bonded warehouse and/or Terminal (***)
 Creation of an online tracking system
 Offer a Form M processing service
 Guarantee deliveries withina specified time frame – 5 workingdays fromthe arrivalof the container at the port or 3 workingdays
for the goods arriving via air
 Delivery to final destination using own equipment – trucks and/or pick up depending on the cargo size
 Time frame: Minimum of 6/8 months to:
 Set-up and streamline all the possible partnerships
 Set-up the tracking and Form M processing service
(*) The ideal Partnershipshould be the one withWWF&F agents (DHL / Panalpina /DBSchenker/ Khunel&Nagel, etc.) which unfortunatelyalready
have local agents. We therefore needto concentrate on the F&F agents basedinthe countries that are importing into Nigeria, China (with a huge
number of F&F (249) to deal with), USA (where we can use our partner’s help in the search, India, UAE and more.
(***) It is possible to use a third-partybondedwarehouse for now, but clients might be lost andservice low. It is vital to have our own bonded
warehouse, in a secure, safe area close to the port terminals.
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Prepared By Giorgio Enrico Del Celo
 (Bonded) Warehouse
Warehouse are developinginreactionto changes in the supplychain, market conditions andcustomer expectations. Warehouses are a critical
function that is frequentlyoverlooked, yet the benefits fromeffective control andadministration canbe substantial. An efficientlymanaged
warehouse is the core ofa successfullyrun business. Some companies choose to buildandmaintaintheir ownspace while the most popular
optionis for a fullyservicedspace. Benefit are lower capital investment, guaranteedperiod of service andreliability.
For example, a warehouse withspecialized labor force, facilityand standard operating procedure designedto the Clients operationwill ensures
an abundance of resources as the Client doesn’t have to share labors, equipment, dock doors or floor space …
Warehouse management servicescanbe of different nature and withdifferent partners. A Bondedwarehouse, while becoming anNVOCC(Non
Vessel Owners CargoCarrier) agents will definitelybe anasset.
There are manyof them whom are interesting to have agreement witha local freight & Forwarder agents andNVOCCagents. Panda / Team
Globalkaiyuanjust to mentions some ….
Strategy:
I. Rent of warehouse of a minimum2/3000 sq.
II. Organized warehouse with
 NCS permits
 barcode
 WMS (Warehouse Management System)
 Selective pallet / goods racking
 Pallets / Cartons flow system
 MaterialHandlingsystem
 Office(s) for:Customs Officers (BW) /Private Clearing Agents (BW)/ Companypersonnel
 Full CCTV system
III. Register the companyas NVOCC
IV. Seal agreement with abroadconsolidator whoare exportinginto Nigeria
 Exportation
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Prepared By Giorgio Enrico Del Celo
ExportationinNigeriais a serious realityandgrowing. Everybodyis “thinking” that exportation means Oil but that is not completelytrue.
There are so manyother commodities that are regularlyexporter (see charts). Not allthese commoditiesare complete a vessel andexporter
are lookingfor aneconomical wayto export.
The idea is to offer a consolidation service
for exportation.
An accurate marketing investigationcan
easilyreveal that manyexporters will be
pleased to load basedon LCL instead to wait
to have the full cargoto justifythe use ofa
full container.
The major strategyis to associate witha WW
F&F with a major hubpoint where cando the
de-consolidation ofthe cargocoming from
Nigeria anddothe re-consolidation for the
final destination.
Use of warehouse to consolidate cargoes, a
(continue)marketing campaign via media
(sms / web site / email signature / etc)
 Offshore Activity/Brokerage/Vessel Chartering to Oil & Gas Companies
The offshore market is basicallydominatedby3 major clients;
 Total with22%
 ExxonMobil with 19%
 Chevron with14%
 Closelyfollowed byothers such as BP, Eni, Shell, Saipem, Addax and more.
The total fleet is split within 3 major players:
 Tidewater 27%
 Bourbon18%
 Sarko Line 8%
Notwithstanding what looks like a “private niche” that still has room for new fresh members. However, hiring of OSV, PSV and AHTS in this niche
is done mainly via tender for long-term charters.
Strategy:
 RegistrationwithNIPEX – This is anessential taskas the registrationis required bythe oil & gas companies that are placing tenders via
NIPEXMarket
 Participate, preparation, followingof various tenders for vesselrequest
 Direct registration withoil & gas companies
 Partnership withOSV andPSV Owners
 Chartering OSV or PSV andsubchartering to Oil&GasCompanies
 Marketingwithinthe oil& gas , Offshore, Rigs companies,
 Evaluate, based onclient’s requirements, ifit is better to import vesselunder TemporaryImportationor register under Nigerianflag
The thinkingstrategies are connected, linkedandbenefit eachother development!!
The process of doing so canbe modeledina sequence of steps:
 the situationis analyzedto identifyopportunities,
 the strategyis formulated for a value proposition,
 tactical decisions are made,
 the planis implemented and the results are monitored
Page 9 of 12
Prepared By Giorgio Enrico Del Celo
The financial analysis as well as the cashflow analysis, has beenmade taking consideringthe possibilityto hire, andsub-hire, a PSV vessel at a cost of ~
$27.000 / dailyand the use of a Bondedwarehouse
Sale Forecast Revenue is approx.$ 72k/ monthas market average and beingconservative knowingthere is always the abilityto grow andnot
take intoconsiderations what is alreadyonground…
PSV vesselsincome is basedonanaverage of$2k / dayconsideringthe vessel inoperationonanaverage of28 days / month. Direct cost of
the vessel includesFuel, crew, supplies etc.
The Direct cost of sales-allocations for collections and charge back, as withthere is going to be a POS (Point of Sale) cost and the chance that
some accounts go to collections or get chargedbackto business. The average allocation for the industry3% of sales andthis where th e direct
cost figure comes frominthe pro forma….
Sales Forecast
Year 1 Year 2 Year 3
Sales
Revenue $870,000 $935,250 $1,075,538
PSV Vessel $7,728,000 $8,500,800 $9,775,920
Total Sales $8,598,000 $9,436,050 $10,851,458
Direct Cost ofSales Year 1 Year 2 Year 3
Allocationfor Collection/Conversion $257,940 $28,058 $32,266
PSV Vessel Rent $7,056,000 $7,761,600 $8,925,840
Subtotal Direct Cost of Sales $7,313,940 $7,789,658 $8,958,106
Page 10 of 12
Prepared By Giorgio Enrico Del Celo
Pro Forma Profit and Loss
Year 1 Year 2 Year 3
Sales $8,598,000 $9,436,050 $10,851,458
Direct Cost ofSales $7,313,940 $7,789,658 $8,958,106
Total Cost of Sales $7,313,940 $7,789,658 $8,958,106
Gross Margin $1,284,060 $1,646,392 $1,893,351
Gross Margin% 14.93% 17.45% 17.45%
Expenses
Marketing/Promotion $15,000 $15,600 $16,224
Warehouse (Dressing/Bonded) $65,000 $32,500 $35,000
Legal andAccounting $25,000 $26,000 $27,040
Licenses and Permits $15,000 $15,600 $16,224
CBP Reimbursement andFees $12,500 $13,000 $13,520
Equipment and Maintenance $15,000 $15,600 $16,224
UnanticipatedExpenses $10,000 $10,400 $10,816
Insurance/SuretyBonds $25,000 $25,000 $25,000
Total OperatingExpenses $182,500 $153,700 $160,048
Profit Before Interest and Taxes $1,101,560 $1,492,692 $1,733,303
EBITDA $1,101,560 $1,492,692 $1,733,303
Taxes Incurred $330,468 $447,808 $519,991
Net Profit $771,092 $1,044,885 $1,213,312
Net Profit/Sales 8.97% 11.07% 11.18%
Operating Expenses-
Marketing and Promotion-Start conservative with a budget of15Kgrowing 4% annually, 4% growthon most all the operating expenses as that is the
average cost of
living/inflation% to allocate anannual increase onexpenses and wages. Knowing that the PSV will likelybe under contract the majorityof the time it is
in service anda
bonded warehouse is simplyeither close to a port or inanarea where there is a high demand or needfor the service. Therefore, this is not a business
model that requires
a large budget for Marketing andAdvertising.
Warehouse-(Dressing/Bonded)- 65Kyear1, then32500, and35000 in the following years.
Legal and Accounting-These cost will mostlybe allocatedto the warehouse side of revenue. There willbe some legal andaccounting costs, more so
legal at the beginning
stages ofgetting everythinginaccordance withthe rules and regulations put forth bythe CBPandthe accounting will be an ongoing cost for both
sources of revenue in the business.
Licenses and Permits-There will be manylicensesandpermits neededfor not onlythe warehouse but alsothe PSV operations. These will be on
average 10-12K/annually, the proforma reflects a cost of 12,500 withthe standard4% increase being conservative knowingthat at anytime newrules
and or regulations could be passedrequiring excesslicensingor permits that come with a fee
CBP Reimbursement and Fees-these are costs that are associated withstrictlythe warehouse operation. Customs hasmanyfeesthat the warehouse
operator has to pay
to remain incompliance withtheir policies whichis where this figure comes from.
Equipment and Maintenance- Standard withanybusiness, especiallywithoperatinga PSV vessel. The industryaverage on maintenance costs to
operate a vessel were 8-
10K/annuallywith an additionfor anycosts associated withthe warehouse whichis where the 15Kfigure comes from.
Unanticipated Expenses-unknown….but always goodto allocate a percentage ofthe total operating expenses for the unknown. Again, taking a
conservative approach inhopes to out-perform the forecast.
Page 11 of 12
Prepared By Giorgio Enrico Del Celo
Pro Forma Cash Flow
Year 1 Year 2 Year 3
Cash from Operations
Cash Sales $8,598,000 $9,436,050 $10,851,458
Subtotal CashfromOperations $8,598,000 $9,436,050 $10,851,458
Subtotal CashReceived $8,598,000 $9,436,050 $10,851,458
Expenditures Year 1 Year 2 Year 3
Expenditures fromOperations
Bill Payments $7,196,407 $8,331,981 $9,535,654
Subtotal Spent on Operations $7,196,407 $8,331,981 $9,535,654
Additional CashSpent
Subtotal CashSpent $7,196,407 $8,331,981 $9,535,654
Net Cash Flow $1,401,593 $1,104,069 $1,315,804
Cash Balance $1,401,593 $2,505,662 $3,821,465
Pro Forma Balance Sheet
Year 1 Year 2 Year 3
Current Assets
Cash $1,401,593 $2,505,662 $3,821,465
Total Current Assets $1,401,593 $2,505,662 $3,821,465
Total Assets $1,401,593 $2,505,662 $3,821,465
Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $630,501 $689,685 $792,176
Subtotal Current Liabilities $630,501 $689,685 $792,176
Total Liabilities $630,501 $689,685 $792,176
Retained Earnings $0 $771,092 $1,815,977
Earnings $771,092 $1,044,885 $1,213,312
Total Capital $771,092 $1,815,977 $3,029,289
Total Liabilities andCapital $1,401,593 $2,505,662 $3,821,465
Net Worth $771,092 $1,815,977 $3,029,289
Page 12 of 12
Prepared By Giorgio Enrico Del Celo
Thank You
Giorgio EnricoDelCelo

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Market Outlook

  • 1. Page 1 of 12 Prepared By Giorgio Enrico Del Celo Marketing Plan A MARKETING AND STRATEGIC PLAN PREPARED WITH THE COMPANY GROWING IN MIND …
  • 2. Page 2 of 12 Prepared By Giorgio Enrico Del Celo Market Outlook Key Points of the Global Maritime Industry 1. Asia Pacific is expected to be the largest due to China and India growth (*) 2. Navigation services are expected to be in the highest demand among services 3. Container handling should emerge as leading market by value 4. Commodity shipping is decreasing in value due to drops in prices 5. Increased shipping data should help shipping companies 6. Massive global demographic shifts should impact shipping 1. Emerging middle class 2. Technologyincreases – maritime services should embrace new technology to attract young professionals 7. China is projected to be the largest maritime market by 2030 8. China and emerging countries should expect the most growth in shipbuilding and deliveries (*) 9. Oil and natural gas is expected to account for 60% of the global demand for energy in 2030 (**) 1. Big opportunities for companies in the offshore oil and gas and renewable energy industries 10. Offshore oilproductions are expecting to grow -37% by 2018, up from 35% in 2010 driven by contribution from Deepwater (>600 feet) 11. Global Deepwater Capex is forecasting to reach $65 billion by 2016 indicating a CAGR of ~25% 12. Deep water activity is mainly carried out in the “Golden Triangle “(West Africa, US Gulf and Brazil) (*) Commercial shipping, fleet ownership and shipbuilding The volume of seaborne trade will double from nine billion tonnes per annum to somewhere between 9 and 24bn tonnes by 2030. China will play a key role in 2030 as the emerging maritime superpower in shipping. China will see the largest growth in comm ercial fleet ownership, rivalling Greece and the rest of the European countries combined. China will become the world’s primary maritime market, leading in seaborne trade, shipbuilding and vertically integrated ownership and ship management. The economic development of India follows closelybehind China, and it is expected to become a giant driver of global trade in an order of magnitude similar to China. The total deliveries of bulk carriers, tankers, LNG carriers and container ships across the world will remain at around 2010 levels. China and emerging countries will determine the shipbuilding market landscape in 2030. Japan and South Korea, however, will lose their market share. South Korea’s market share will fall and Japan will play a rapidly declining role in shipbuilding when compared with the market leaders. The number of deliveries from the emerging countries will increase: Vietnam, Brazil, India, and Philippines could be the leaders. Brazil and India will see the largest percentage increase, while Vietnam will gain the largest volume. (**) Offshore Energy Oil and natural gas is expected to account for 60% of global demand for energy in 2030. Advances in technology, underpinned by innovation, research and development will be the keys to meeting the growing demand for energy from more diverse sources. The number of offshore platforms and renewable energy devices required to meet global demand will grow significantly. This indicates growing challenge s and opportunities to produce offshore oil and gas, and offshore renewable energy. There will be tremendous growth opportunities for participants in the offshore oil and gas and renewable industries Key Points of the Nigeria Maritime Industry 1. The maritime industry is a key part of the growth of the economy 2. Nigeria’s oil production is expected to double by 2016 to 4 million barrels a day – 5th largest producer of oil after Russia 3. Dangerous ports and waters cause fear in shipping companies a. Rise in private security companies b. Increase in legislation/safety would help bring more trade to Nigeria/Africa 4. Inefficient ports also decrease traffic a. Bad burocracy b. Low shipbuilding and repair capabilities – taking advantage of this situation could be very profitable 5. “There are examples of African attempts and investments in developing the maritime sector, such as the Memorandum of Understa nding signed byNigeria and South Africa accordingto whichDurban-based SouthernAfricanShipyards (SAS)will finance the development ofmodern shipyards in Nigeria and operate them with Nigerian labour and local content as much as feasible. The agreement also includes the establishment of maritime engineering technology transfer program from South Africa to Nigeria. Simultaneously the Nigerian G overnment has revealedplans to revive the Nigerianmaritime sector bybuilding a new shipyard withprivate sector participation (Ventures Africa 2013). In addition to generatingemployment and economic growth to the country, the project is expectedto provide increasedtraining possibilities for the cadets of the Maritime Academy of Nigeria (MAN) which already utilizes the country’s great labour pool in educating seafarers and
  • 3. Page 3 of 12 Prepared By Giorgio Enrico Del Celo maritime industry professionals even for foreign vessels. Moreover, developing the maritime sector could provide a catalyst to diversify the oil-driven economy. 6. Partnerships are a key to the future of the shipping industry growth in Africa 7. China is increasingly interested in and contributing to the maritime sector (for example Lekki Free Zone) 8. Some legislation and organizations are developing better standards within Africa a. Legislation and laws that restrict international vessels could help local companies expand and increase the economy 9. Nigeria and Belgium may be increasing trade between them 10. Lack of implementation of policies may be the real reason the maritime industry is suffering/not growing as e xpected 11. Nigeria lacks international shipping vessels a. Foreign vessels carry Nigeria’s oil 12. Coastal areas are not currently able to support traffic a. Too shallow for large/average ships b. Too small of ports for traffic 13. Multimodalism and intermodalism should alleviate traffic on ports and help streamline shipping a. Direct transfers from train/plane/truck to boats and vice versa b. This will also create other things such as warehouses, freight forwarding, etc 14. Extended port and customs hours should raise activities immensely – 24-hour operation 15. OSV to Rig ratio is expected to fall below 3.9 by 2-15 reflecting a tilt in market balance in favour of Owners Incremental demandor OSV Activityit willcome from deep water project in Angola, NIGERIA and Ghana by July 201Market Analysis and Opportunities Due to the strong market andincrease in global salesIntegratedServices is speciallypositioned to take advantage of an attractive market opportunity. Some specific opportunities are as follows; Globally Opportunity has the opportunityto further developand facilitate the development of the maritime industryin Africa, which has global implications. Opportunities for include the following; 1. Partnerships directly with Chinese and India companies 2. Research into utilization of container shipping as a primary method of shipping 3. Implementation of big data in order to increase efficiency 4. Continuing to innovate technology and embrace new technologies 5. Increased dealings within the oil and gas and natural energy industries Nigeria Opportunity 1. Acquisition of Nigerian international shipping vessels – this would take advantage of the crude oil market 2. Increase in security – push for reform, implementation and accountability, partnerships with private entities 3. Solidification of key partnerships – China, South Africa, Belgium 4. Creation of new intermodal shipping innovations – rail to sea to road 5. Acquisition of fleet of trucks for the transportations of containers, OOD cargoes and project cargoes 6. Implementations of use / offering services of bonded warehouse 7. Partnerships with shipping lines as well as other terminals for the implementation of the Bonded Terminal(s) 8. Implement proper penetration into the Oil & Gas Industry / Offshore 9. Freight types are mainly containerised cargoes, general cargoes, roll-on-roll-off cargoes and petroleum products. 10. General cargois mostlyhandledbyTinCan islandport;drycargo, containers byApapa port andliquidcargo byOkrika port in Port Harcourt. 11. Apapa port accounts for 40% of cargo throughout the Nigerian seaports.
  • 4. Page 4 of 12 Prepared By Giorgio Enrico Del Celo Marketing Plan In mypoint of view, inorder to write a marketingplan, we need first to have clear inmindthe difference betweensales and revenues. Sales and revenuesare related but different goals, and eachneeds its ownstrategy. Althoughthe tactics for eachmight be different, theyshould complement each other. Understandinghowsales andrevenue are relatedandhowto balance the needto increase bothhelps marketingefficiently and optimization ofprofits. Sales vs.Revenues The words “sales,” “revenue” and “income” have different meanings, andbecome confusing if usedas synonyms.  “sales” refers to the number of units of your product you sell  “revenues” refers to the total amount moneyyour sales generate  “income” refers to your profit from those sales. We shouldkeep these inmind when planningsales strategiesto strike the right balance for the business’s needs. Understand what the Company is selling It might sound funnyto askwhat a Freight andForwarding Companyis selling but most salespeople andMarketingManagers inF reight & Forwarding Companies poorlyapproaches clients. Does a Freight & Forwardingcompanysell "freight?” No. Does a Freight & Forwardingcompanysell "transportation?” No. A Freight andForwarder companysells:  Organization  Consolidation  Coordination Increase the Marketing A solid wayto increasesales is to boost the market. Quantitydoesn’t necessarilymeanquality, so careful planning, test-marketing and monitoringthe results maximizessales. Even if there are fairlycompetent sales personnel, organizationmaybe handicappedinenhancing sales figures. This is because manysalespersonnel employanoutdatedselling technique. For better market penetrationandto boost companysales teams shouldimplement a new, better selling technique, suchas what follows;  Marketplace researchshould be in place to learn which messagesspeakto the company’s target audience. (Targets include shipping companies like Bourbon Interoil/Edison Cheust/Tankers Owners as well as Oil & Gas companies like Shell/Total/Mobil/CNL and more)  Investigate the market reputation, financial position, businessvolume, and topandrelevant management for the targetedpotentialnew customers mastering the 80/20 principle  Phone calls and/or in-personmeetings withpotentialclients must be prepared ina more scientific and analytical way  Monitoring andevaluatinganysales calls and/or meetings, andmaintaincomprehensive statistics to learnas much as possible about the target market  Run ads and promotions inlimitedlocations and checkthe results before spending the entire budget  Incorporate processes to monitor marketing communications, such as electronic codes or website traffic statistics.  Employthe viral marketingattempts to reachcurrent customers andnewcustomers. (Viral marketing is a p romotion that encouragespeopleto share a message with others, passing it from personto personmuchlike a virus spreads)  Offer giveaways of companyservices Review Company Pricing Strategies If the company’s service is price sensitive, special attentionshouldbe paid to pricing strategies. Find out what the competition is charging andraise or lower companyprices based oncompanygoals. Here’s three pricingscenarios:
  • 5. Page 5 of 12 Prepared By Giorgio Enrico Del Celo 1. Lowering prices canincrease revenuesto make upfor lower margins. 2. Raisingprices cancreate a higher perceived value inthe minds of consumers andincrease margins. 3. Raisingprices canincrease your revenues without necessitating anincrease in sales. It is verycrucial, however, to research the credit positionof the customer(s) in order to negotiate the right credit terms as per companyri sk management policy. Also it is veryimportant to evaluate the servicesrenderedto the particular client. Are we giving them a 4PL service or just a custom clearing service or a procurement or a delivery of spare? Expand Company Distribution Channels Changing and/or implementing where andhow the companysells products can significantlyboost salesandrevenues without requiringanyparticular changes to the marketingor pricing. After a careful studyof the effects ofusing online selling (one example is FlexPort, an USA-basedcompany), direct mail, andoutside sales reps (virtual assistant and/or outside partnership, etc) to project howeachmethodcanaffect your sales volumes, profit margins andtotal profits. Insome cases, newdistribution channels require marketingsupport. Diversify Offerings For a mature companyas wellas a growingone, it might be time to addnew servicesto create exponential growth. Determine what products target customers needthat the companydoes not currentlyoffer andsee if those are appropriate andprofitable services to add. Organizationalprocesses might need to be refined or overhauled, or it maybe necessaryto combine oldproducts withnew ones. This might initiallyresult ina decrease insales, but revenuesshouldbe higher if newservices/products cost more per sale. Develop Relationships "Everybody in the Company is a Marketing Manager” Though salesare the responsibilityof the Sales & Marketing department, it is vitalthat everyone withinthe organization make an effort to generate sales leads throughpersonal acquaintances. The more people that promote the service, the more potential sales andrevenue anorganizationcanget. Every individual shouldmake at least four sales calls ona dailybasisto generate a minimum of five leads ina weekanda m inimum of25 target customers in a year. Above andbeyondvisiting the existing clients ona regular basis, there must be a minimum number of newpotentialclients to be visited.
  • 6. Page 6 of 12 Prepared By Giorgio Enrico Del Celo Strategic Plan It is important to highlight that the best strategyis one that will set the business apart fromits competitors. While there's no magic formulafor sucha strategy, there are keyfactors that will helpto determine what the strategyshouldbe. We need to know exactlywho the customers or target prospects are, where they are located, what they want and need, and why, how, and when they need it. Strategy will be fully implemented only when we are absolutely sure that our unique selling proposition is right. Market conditions change at bewilderingspeed, because oftechnology, customers'tastes, fashions, trends, media influences, andsoon. If we want our business to survive in the 21st century, we cannot standstill. What is unique todaybeingwidespreadtomorrow, andunwanted the dayafter that. The vital ingredient ina trulydynamic marketing strategyis to strive continuallyto discover new andbetter ways to addvalue for customers, andkeepthe proposition unique in the chosen market. Nigeria has a total of elevenports and eight oilterminals organised inthree zones of Western, CentralandEastern. The central zone withits headquarters in Warri and the Eastern zone with its headquarters in Port Harcourt are predominantly oil terminals, although Warri, Sapele, Koko, Port Harcourt, Calabar and the Federal ocean terminal are not to be overlooked. The new ocean port under construction in Lekki Free Zone and expected to be ready by 2019 , is a reality that need to be taken into serious business consideration. The importance ofthe seaports is attestedto bythe fact that approximately, 99% byvolume ofNigeria total imports andexports are sea-borne. Nigerian ports control 60% of imports inWest and Central Africa. The seaports provide anoverwhelming economic advantage over all other modes oftransport consideringthe huge tonnage ofgoods that can be carriedover longdistances. The ports have contributedto regionaleconomic integrationinthe West African sub-region and have served as the major determinant of how economic activities are distributed. The maritime industry is a major long term determinant of national growth. Plans for marketing penetration:  Clearing & Forwarding sector According to Nigeria’s National Bureau of Statistics (NBS), imports from Asia accounted for 44.6 percent of Nigeria’s imports in 2015, while imports from Europe and the Americas accounted for 33.6 percent and 14.1 percent, respectively. Basedon revealed figures it is clear that a successful freight companyshouldseeknew clients within the Clearing andForwarding industry, such as; o Dangote o Siemens o Schneider o Coscharis Group o John Holt Preferences of the above are to work with Freight and Forwarding Companies who can guarantee a full services package like D2D or 4PL services. Strategy:  Pursue a partnership with international F&F (*)  Offer a FULL 4PL service including the procurement, pick pack, tracking, consolidations & de-consolidation, importation(sea andair (**) and clearance through the Bonded warehouse and/or Terminal (***)  Creation of an online tracking system  Offer a Form M processing service  Guarantee deliveries withina specified time frame – 5 workingdays fromthe arrivalof the container at the port or 3 workingdays for the goods arriving via air  Delivery to final destination using own equipment – trucks and/or pick up depending on the cargo size  Time frame: Minimum of 6/8 months to:  Set-up and streamline all the possible partnerships  Set-up the tracking and Form M processing service (*) The ideal Partnershipshould be the one withWWF&F agents (DHL / Panalpina /DBSchenker/ Khunel&Nagel, etc.) which unfortunatelyalready have local agents. We therefore needto concentrate on the F&F agents basedinthe countries that are importing into Nigeria, China (with a huge number of F&F (249) to deal with), USA (where we can use our partner’s help in the search, India, UAE and more. (***) It is possible to use a third-partybondedwarehouse for now, but clients might be lost andservice low. It is vital to have our own bonded warehouse, in a secure, safe area close to the port terminals.
  • 7. Page 7 of 12 Prepared By Giorgio Enrico Del Celo  (Bonded) Warehouse Warehouse are developinginreactionto changes in the supplychain, market conditions andcustomer expectations. Warehouses are a critical function that is frequentlyoverlooked, yet the benefits fromeffective control andadministration canbe substantial. An efficientlymanaged warehouse is the core ofa successfullyrun business. Some companies choose to buildandmaintaintheir ownspace while the most popular optionis for a fullyservicedspace. Benefit are lower capital investment, guaranteedperiod of service andreliability. For example, a warehouse withspecialized labor force, facilityand standard operating procedure designedto the Clients operationwill ensures an abundance of resources as the Client doesn’t have to share labors, equipment, dock doors or floor space … Warehouse management servicescanbe of different nature and withdifferent partners. A Bondedwarehouse, while becoming anNVOCC(Non Vessel Owners CargoCarrier) agents will definitelybe anasset. There are manyof them whom are interesting to have agreement witha local freight & Forwarder agents andNVOCCagents. Panda / Team Globalkaiyuanjust to mentions some …. Strategy: I. Rent of warehouse of a minimum2/3000 sq. II. Organized warehouse with  NCS permits  barcode  WMS (Warehouse Management System)  Selective pallet / goods racking  Pallets / Cartons flow system  MaterialHandlingsystem  Office(s) for:Customs Officers (BW) /Private Clearing Agents (BW)/ Companypersonnel  Full CCTV system III. Register the companyas NVOCC IV. Seal agreement with abroadconsolidator whoare exportinginto Nigeria  Exportation
  • 8. Page 8 of 12 Prepared By Giorgio Enrico Del Celo ExportationinNigeriais a serious realityandgrowing. Everybodyis “thinking” that exportation means Oil but that is not completelytrue. There are so manyother commodities that are regularlyexporter (see charts). Not allthese commoditiesare complete a vessel andexporter are lookingfor aneconomical wayto export. The idea is to offer a consolidation service for exportation. An accurate marketing investigationcan easilyreveal that manyexporters will be pleased to load basedon LCL instead to wait to have the full cargoto justifythe use ofa full container. The major strategyis to associate witha WW F&F with a major hubpoint where cando the de-consolidation ofthe cargocoming from Nigeria anddothe re-consolidation for the final destination. Use of warehouse to consolidate cargoes, a (continue)marketing campaign via media (sms / web site / email signature / etc)  Offshore Activity/Brokerage/Vessel Chartering to Oil & Gas Companies The offshore market is basicallydominatedby3 major clients;  Total with22%  ExxonMobil with 19%  Chevron with14%  Closelyfollowed byothers such as BP, Eni, Shell, Saipem, Addax and more. The total fleet is split within 3 major players:  Tidewater 27%  Bourbon18%  Sarko Line 8% Notwithstanding what looks like a “private niche” that still has room for new fresh members. However, hiring of OSV, PSV and AHTS in this niche is done mainly via tender for long-term charters. Strategy:  RegistrationwithNIPEX – This is anessential taskas the registrationis required bythe oil & gas companies that are placing tenders via NIPEXMarket  Participate, preparation, followingof various tenders for vesselrequest  Direct registration withoil & gas companies  Partnership withOSV andPSV Owners  Chartering OSV or PSV andsubchartering to Oil&GasCompanies  Marketingwithinthe oil& gas , Offshore, Rigs companies,  Evaluate, based onclient’s requirements, ifit is better to import vesselunder TemporaryImportationor register under Nigerianflag The thinkingstrategies are connected, linkedandbenefit eachother development!! The process of doing so canbe modeledina sequence of steps:  the situationis analyzedto identifyopportunities,  the strategyis formulated for a value proposition,  tactical decisions are made,  the planis implemented and the results are monitored
  • 9. Page 9 of 12 Prepared By Giorgio Enrico Del Celo The financial analysis as well as the cashflow analysis, has beenmade taking consideringthe possibilityto hire, andsub-hire, a PSV vessel at a cost of ~ $27.000 / dailyand the use of a Bondedwarehouse Sale Forecast Revenue is approx.$ 72k/ monthas market average and beingconservative knowingthere is always the abilityto grow andnot take intoconsiderations what is alreadyonground… PSV vesselsincome is basedonanaverage of$2k / dayconsideringthe vessel inoperationonanaverage of28 days / month. Direct cost of the vessel includesFuel, crew, supplies etc. The Direct cost of sales-allocations for collections and charge back, as withthere is going to be a POS (Point of Sale) cost and the chance that some accounts go to collections or get chargedbackto business. The average allocation for the industry3% of sales andthis where th e direct cost figure comes frominthe pro forma…. Sales Forecast Year 1 Year 2 Year 3 Sales Revenue $870,000 $935,250 $1,075,538 PSV Vessel $7,728,000 $8,500,800 $9,775,920 Total Sales $8,598,000 $9,436,050 $10,851,458 Direct Cost ofSales Year 1 Year 2 Year 3 Allocationfor Collection/Conversion $257,940 $28,058 $32,266 PSV Vessel Rent $7,056,000 $7,761,600 $8,925,840 Subtotal Direct Cost of Sales $7,313,940 $7,789,658 $8,958,106
  • 10. Page 10 of 12 Prepared By Giorgio Enrico Del Celo Pro Forma Profit and Loss Year 1 Year 2 Year 3 Sales $8,598,000 $9,436,050 $10,851,458 Direct Cost ofSales $7,313,940 $7,789,658 $8,958,106 Total Cost of Sales $7,313,940 $7,789,658 $8,958,106 Gross Margin $1,284,060 $1,646,392 $1,893,351 Gross Margin% 14.93% 17.45% 17.45% Expenses Marketing/Promotion $15,000 $15,600 $16,224 Warehouse (Dressing/Bonded) $65,000 $32,500 $35,000 Legal andAccounting $25,000 $26,000 $27,040 Licenses and Permits $15,000 $15,600 $16,224 CBP Reimbursement andFees $12,500 $13,000 $13,520 Equipment and Maintenance $15,000 $15,600 $16,224 UnanticipatedExpenses $10,000 $10,400 $10,816 Insurance/SuretyBonds $25,000 $25,000 $25,000 Total OperatingExpenses $182,500 $153,700 $160,048 Profit Before Interest and Taxes $1,101,560 $1,492,692 $1,733,303 EBITDA $1,101,560 $1,492,692 $1,733,303 Taxes Incurred $330,468 $447,808 $519,991 Net Profit $771,092 $1,044,885 $1,213,312 Net Profit/Sales 8.97% 11.07% 11.18% Operating Expenses- Marketing and Promotion-Start conservative with a budget of15Kgrowing 4% annually, 4% growthon most all the operating expenses as that is the average cost of living/inflation% to allocate anannual increase onexpenses and wages. Knowing that the PSV will likelybe under contract the majorityof the time it is in service anda bonded warehouse is simplyeither close to a port or inanarea where there is a high demand or needfor the service. Therefore, this is not a business model that requires a large budget for Marketing andAdvertising. Warehouse-(Dressing/Bonded)- 65Kyear1, then32500, and35000 in the following years. Legal and Accounting-These cost will mostlybe allocatedto the warehouse side of revenue. There willbe some legal andaccounting costs, more so legal at the beginning stages ofgetting everythinginaccordance withthe rules and regulations put forth bythe CBPandthe accounting will be an ongoing cost for both sources of revenue in the business. Licenses and Permits-There will be manylicensesandpermits neededfor not onlythe warehouse but alsothe PSV operations. These will be on average 10-12K/annually, the proforma reflects a cost of 12,500 withthe standard4% increase being conservative knowingthat at anytime newrules and or regulations could be passedrequiring excesslicensingor permits that come with a fee CBP Reimbursement and Fees-these are costs that are associated withstrictlythe warehouse operation. Customs hasmanyfeesthat the warehouse operator has to pay to remain incompliance withtheir policies whichis where this figure comes from. Equipment and Maintenance- Standard withanybusiness, especiallywithoperatinga PSV vessel. The industryaverage on maintenance costs to operate a vessel were 8- 10K/annuallywith an additionfor anycosts associated withthe warehouse whichis where the 15Kfigure comes from. Unanticipated Expenses-unknown….but always goodto allocate a percentage ofthe total operating expenses for the unknown. Again, taking a conservative approach inhopes to out-perform the forecast.
  • 11. Page 11 of 12 Prepared By Giorgio Enrico Del Celo Pro Forma Cash Flow Year 1 Year 2 Year 3 Cash from Operations Cash Sales $8,598,000 $9,436,050 $10,851,458 Subtotal CashfromOperations $8,598,000 $9,436,050 $10,851,458 Subtotal CashReceived $8,598,000 $9,436,050 $10,851,458 Expenditures Year 1 Year 2 Year 3 Expenditures fromOperations Bill Payments $7,196,407 $8,331,981 $9,535,654 Subtotal Spent on Operations $7,196,407 $8,331,981 $9,535,654 Additional CashSpent Subtotal CashSpent $7,196,407 $8,331,981 $9,535,654 Net Cash Flow $1,401,593 $1,104,069 $1,315,804 Cash Balance $1,401,593 $2,505,662 $3,821,465 Pro Forma Balance Sheet Year 1 Year 2 Year 3 Current Assets Cash $1,401,593 $2,505,662 $3,821,465 Total Current Assets $1,401,593 $2,505,662 $3,821,465 Total Assets $1,401,593 $2,505,662 $3,821,465 Liabilities and Capital Year 1 Year 2 Year 3 Current Liabilities Accounts Payable $630,501 $689,685 $792,176 Subtotal Current Liabilities $630,501 $689,685 $792,176 Total Liabilities $630,501 $689,685 $792,176 Retained Earnings $0 $771,092 $1,815,977 Earnings $771,092 $1,044,885 $1,213,312 Total Capital $771,092 $1,815,977 $3,029,289 Total Liabilities andCapital $1,401,593 $2,505,662 $3,821,465 Net Worth $771,092 $1,815,977 $3,029,289
  • 12. Page 12 of 12 Prepared By Giorgio Enrico Del Celo Thank You Giorgio EnricoDelCelo