kaslong retirement community project

INTERNATIONAL RETIREMENT COMMUNITY &

HEALTH CARE PROJECT

BUSINESS PLAN

Chiangrai Wellness Co., Ltd. 279/89 Mu 3, Tambol Robvieng, Amphur Muang,

Chiangrai Province 57000 – Thailand

INTERNATIONAL RETIREMENT COMMUNITY & HEALTH CARE PROJECT BUSINESS PLAN

2

DISCLAIMER

Chiangrai Wellness Co., Ltd , has prepared this business plan (BP). The information contained herein is confidential and proprietary and by accepting a copy of this confidential proprietary BP, the recipient agrees not to copy, reproduce, distribute or permit disclosure to others of this BP, in whole or in part, without the prior written consent of KASALONG HOME and that it will keep confidential all information contained herein not be issued to public and will use this BP solely for the purpose of evaluating a possible investment to KASALONG HOME or raising funds to KASALONG HOME and for no other purpose whatsoever. The projections and pro forma results contained in the BP represent the best estimates of management by KASALONG HOME made based on information presently available. They are subject to judgments, assumptions, and contingencies, many of which are beyond KASALONG HOME ability to control and actual results may vary significantly from projections. None of the information, data, forecasts, projections, or descriptions contained herein is warranted. Representations and warranties will make only in a definitive investment agreement to be negotiated and executed between KASALONG HOME and an investor or lender. Accordingly, KASALONG HOME shall not be liable for any misstatement contained herein and for the omission of any information, which may be material. This BP shall remain the property of KASALONG HOME and shall be returned upon the request of KASALONG HOME.


3

CONTENT

Executive Summary................................................................................................................ 5 Introduction ........................................................................................................................... 10 Goal & Objective ................................................................................................................... 11

Objective ..................................................................................................................................... 11 Mission ........................................................................................................................................ 11 Key to Success ........................................................................................................................... 12

Company Summary .............................................................................................................. 12 Company Ownership .................................................................................................................. 12 Start-up Summary....................................................................................................................... 13

Investment Plan .................................................................................................................... 14 Capital Utilization ........................................................................................................................ 15 Loan Liquidation Plan ................................................................................................................. 18

Project Description................................................................................................................ 19 Location....................................................................................................................................... 19 Zone ............................................................................................................................................ 21 Feature........................................................................................................................................ 26 Construction Plan........................................................................................................................ 31 Technology.................................................................................................................................. 32 Future Products and Services .................................................................................................... 32

Marketing Strategy................................................................................................................ 34 Market Needs.............................................................................................................................. 34 Market Trends............................................................................................................................. 34 Market Growths........................................................................................................................... 35 Segment Strategy ....................................................................................................................... 35 Market Segmentation.................................................................................................................. 35 Main Competitors........................................................................................................................ 37

Strategy and Implementation Summary............................................................................... 37 Strategic Advantage ................................................................................................................... 38 Marketing Strategy...................................................................................................................... 39 Sales Strategy............................................................................................................................. 41 Sales Forecast ............................................................................................................................ 42 Milestones ................................................................................................................................... 44

Management Summary ........................................................................................................ 45 Organizational Structure ............................................................................................................. 45 Management Team..................................................................................................................... 47 Management Team Gaps........................................................................................................... 48

Financial Analysis ................................................................................................................. 49 General Assumptions ................................................................................................................. 49 Break-Even Analysis................................................................................................................... 50 Salary & Wage Rate ................................................................................................................... 52 Sales Cost & Operating Expenses ............................................................................................. 56 Rent & Service Charge Rate ...................................................................................................... 60 Pro-forma Cash Flow.................................................................................................................. 62


4

Pro-forma Profits & Losses......................................................................................................... 64 Pro-forma Balance Sheet ........................................................................................................... 66 Ratios Analysis ........................................................................................................................... 68 Financial Benchmark .................................................................................................................. 70


5

Executive Summary Project Name International Retirement & Health Care Project (Kasalong Home) Project Owner Chiangrai Wellness Co., Ltd. (CWC) Project Location 198 Mu 15, Tambol Pa Or Donchai , Muang District, Chiangrai – Thailand. Project Area 250 rais. (100 acres) Total Investment Sum $ 32,404,203

Funding Required $31,863,662 Project Description KASALONG HOME is currently in the first stages of purchasing the land near the city of Chiangrai, to construct KASALONG HOME , an International Retirement Community & Health Care Project to facilitate an international long staying ,rehabilitating and health servicing to senior, retired persons and general tourists. The implementation and construction of the project building & providing the other facilities, KASALONG HOME estimated the cost of the project approximately $32,404,203 and will complete the project construction within 14 months upon the funds are available. KASALONG HOME will consist of Health Resort Hotel (for guest - 150 Units), Senior House & Condo (200 Units) and Senior Nursing Home (100 units). All units are fully furnished with furniture, and modern household appliances such as microwave oven and refrigerator, and bathroom with toiletries, full range of linens and towels. For personal entertainment, a stereo with CD player and color television with cable satellite are provided in each room. KASALONG HOME will also furnish all room with Hi-Speed Internet to let the occupants to access internet any time they want. For safety and peace of mind, KASALONG HOME building has heat & smoke detectors, a sprinkler system are equipped in every room and area , CCTV 24-hour security guards & reception services.


6

KASALONG HOME will also provide facilities to customers are as follows:

• SPA & Sauna and Beauty Salon Shop • Jacuzzi • Thai & Chinese Traditional Massage • Thai & Chinese Alternative Medicine Doctor • Physical Clinic • International Dental Clinic • Mind Control Center • Naturopathy • Ayurvedic Doctor • Holistic Health • SPA Therapy • Exercise & Fitness Center • Nutritious Food Shop & Restaurant • Natural Food Center • Club House & Swimming Pool • Seminar Courses relating to Healthy & Alternative Medicine Doctor Courses. • International Conference Hall • Rehabilitation Center for Foreign Elder Person • Senior House for Retirement Person • Guest Hotel • Mini Theater • Church and Mosque

Investment Plan KASALONG HOME had already invested the amount of $594,595 as a registered capital investment, which having been paid amount of $54,054 for the cost of the surveying of the project feasibility study, legal costs, stationery and expenses associated with opening our head office in Chiangrai province. KASALONG HOME is seeking finance from any lender or JV partner the amount of $31,863,662. With this amount, KASALONG HOME can start at once to purchase the land and begin the project construction, which it will be completed within 14 months. Loan Utilization KASALONG HOME will utilize the loan in the project are as follows: 1. Cash Flow $ 3,918,919 2. Construction & Infrastructure $ 16,256,757


7

3. Long Term Assets $ 5,810,757 4. Equipment, Furniture and Vehicle $ 5,877,230 Total $ 31,863,662

KASALONG HOME will pay the interest at 5% maximum per annum. KASALONG HOME will pledge the project itself as assets against the loan amount. The loan principal shall be liquidated annually and will be discharged within 15 years.

Why is “KASALONG HOME”?

Due to the rapid increasing number of senior persons from over the world which consist of retired persons, senior persons from various countries in the world e.g. Japan, Korea, Taiwan, USA, Canada and Europe, caused their governments of those countries having their policies to support these people with plan and budget to spend their life comfortably at the end of their life by touring or living in foreign countries with inexpensive cost, like Thailand since the cost of living is cheaper than those host countries. Furthermore, Thailand is a beautiful and scenic country. The people are charming, the food is extraordinary and the life style and the good transportation links in this strategically well-located country to do business, touring or living in the region have attracted many expatriates and retirees. Thailand for its part welcomes foreigners both as tourists and on a more long-term basis. Additionally, Thailand is now promoting the country as a retirement location and has instituted long-term visa provisions for retirees in order to encourage foreigners to retire in the country. As of all above factors, inspired KASALONG HOME to engage into a business of International Retirement and Health Services as well as to provide with the First Class Health Resort Hotel, Senior House and Senior Nursing Home to accommodating and facilitating the senior retired persons, and other tourists as aforesaid above, hence became the name of “KASALONG HOME”. Market Segmentation Kasalong Home’s main consumer base will be primarily foreigner senior & retirees from Scandinavia, Western Europe, North America and Japan. These segment customers are usually looking for higher end health living facilities that foster a safe, enjoyable, and convenient environment. They are technology savvy and have a desire to have access to the health amenities that we provide. The largest segments that Kasalong Home expects are senior tourists from Scandinavia, Western Europe, and North America. We expect to get 60% segment for this group. The second market segment is the disable & sick persons from Japan and other countries which we expect 30% for this segment.. The last segment is general tourist worldwide including Thai people. We expect to get 10% for this segment.


8

Marketing Strategy Kasalong Home emphasizes on 7 Ps marketing strategy, which they are:

1. Products: Must Be Essence and Excellence. 2. Price: Must Be Fairly & Competitive 3. Place: Must Be Convincingly & Apparently 4. Promotion: Must Be Perpetually & Progressively 5. People: Must Be Courtesy & Hospitality 6. Process: Must Be Accurately & Validity 7. Package: Must Be Interesting & Stimulating

Current Prospective Client: We are under negotiating with Korea consulting company name below to provide CWC a one year contract( with extendable every one year) to accommodate and facilitate their 200 senior Korean citizen. They are ready to sign contract wit CWC and will reside the community at once upon the completion of our project construction. Consulting Company: K.T.C.C. Co., Ltd President : Mr.Lee, You-Hyeon Managing Director : Miss Hong Ji-Hee Office Address : 95/4 Mu 8 Baan Klang Krung Office Park Ladphrao 71, Naknivas Rd, Ladphrao, Bangkok 10230 Mobile : +666 3969 443/ 666 106 1417 Email : [email protected] Financial Forecast Below is shown the Financial Forecast of the project for 15 years financial plan ( in US$). Sales Value : 477,138,384 Sales Cost & Expenses : 173,109,044 Operating Profits : 304,029,340 Operating Profit Margin : 58.64% Internal Rate of Return (IRR) : 20.98% Net Present Value (NVP) : 73,658,902 (15 Yrs -5% Discount) Pay Back Period : Within 5 years Management Team Chairman: Dr.Witoon Nirooktisan (Physician) Managing Director: Mr.Cheeravit Pongsatayachon


9

(Health Administrator) General Manager: Mr.Ekawat Pookum (Hotel Administrator) Alternative Medical Doctor: Dr.Siritorn Cholitakul (Physician) Thai Medical Doctor: Miss Mukda Chantaneeya (Physician) Chinese Medical Doctor: Qiu Y Qiang (Physician) Senior Health Care Manager: Mrs. Alongkorn Chaengcharoen (Nurse) Physical & Recreation Manager: Miss.Kanokporn Homnan (Physicalist) Nutrition Manager: Mrs.Rewadee Rouyam (Nutritionist) SPA & Beauty Manager: Mrs.Pasinee Sathirat (SPA Specialist) Room Manager: Mr.Peerasak Bancheun (Hotel Administrator) Marketing Manager: Miss Porttip Nantachai (Marketing) Accounts & Finance Manager: Mrs.Patcharee Bussabok (Accountant) Food & Beverage Manager: Mr.Tanasilp Kongtiang (F & B) Advisor Team Alternative Medicine Doctor: Dr.Petchara Lorvithaya Health Promotion Clinic – McCormick Hospital Chinese Medical Doctor: Mr.Suthisak Pavorathisan Chinese Medical University of Chen Du Senior Nutrition: Mr.Vatcharapol Thamkoon Food Scientist , U.K Health & Beauty: Dr.Vithan Thanavuth Chulalongkorn University Overseas Market Mr.Kevin Lee Mental Health: Mr.Visit Wungvinyu Senior Nursery Care: Mrs.Ounchai Songkroh Health Educator 9 Contacted Person: Mr.Thanaphol Sangseelueb Project Consultant Tel:/Fax: +662 938 1522 Mobile: +6686 883 4024 Email:[email protected]


10

Introduction

Linked to the health-and-holiday concept is the promotion of long-stay visitors, with is mainly targeted at getting retirees from countries that have harsh winters and a higher cost of living to stay for extended periods in Thailand, where it is both warmer and less expensive.

Thailand owes much of its international popularity to the remarkable variety of its natural attractions. On offer is a tremendous choice of settings – blissful beaches and islands, rugged hills and jungles, teaming rivers and waterfalls.

Now a related product of this diverse environment, the country's rich natural healing heritage has started to attract a new generation of discerning tourists. With the increasing international popularity of health centered holidays, Thailand is pushing to the fore its world-renowned traditional massage, herbal steam baths, healing arts, meditation, aromatherapy, yoga, acupuncture, cookery and beauty treatments, as will as an ever-expanding selection of world-class spas.

Longer stays are the order of the day as visitors seek not just to experience these healthy ways fleetingly but to absorb maximum benefits over an extended period, while at the same time experiencing the country's history and culture at a deeper level. Once the process of rejuvenation and enlightenment starts to bear fruit, the logic of making this choice becomes beautifully apparent and quite irresistible.


11

Goal & Objective

-20,000,000

0

20,000,000

40,000,000

60,000,000

80,000,000

100,000,000

120,000,000

140,000,000

160,000,000

US$

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15Year

Financial Plan

CapitalSales ValueNet IncomesOutstanding LoanCash BalanceEquity

Financial Plan (15 Years)

Objective Our main objective at preliminary stage is as follows:

1. To provide housing community that is affordable for seniors. 2. To create a living environment that encourages healthy aging, independence and self

determination 3. To foster a sense of community within our housing project. 4. To be the premier provider of Communities of Care and Wellness for seniors.

Mission

1. To provide the best possible quality of life for each individual who chooses to make Age Care Communities of Care and Wellness their Home.

2. To provide high-quality, comfortable rental Long Stay and Nursing Home units offer state-of-the-art living conditions reflective of the rapid advancements in technology and a growing need for quality housing. KASALONG HOME is dedicated to a hassle


12

free-living environment in which our tenants can enjoy all of the benefits of safe, attractive, and inviting units. Unlike many other realty companies that are solely concerned with turning profits, our primary objective at KASALONG HOME is to maintain the highest level of customer satisfaction that is achievable. Tenant safety, happiness, and comfort are our main goals. KASALONG HOME maintains competitive market prices, while working toward expanding the number of units rent, and increasing total earning.

3. Within the company we will strive to work as a cohesive, harmonious unit focused on exemplifying our mission. Just as customer satisfaction is an intricate part of KASALONG HOME success, so is employee satisfaction. That is why the founders of KASALONG HOME believe that employee satisfaction will make the company a success and will be the key to their longevity.

4. Initial focus will be to develop a buildings complex to meet Long Stay Accommodation Standards and increase long-term assets and income. Housing units will predominantly be located in the community neighborhood targeting both foreigners and local customers. KASALONG HOME fosters the ideals of the importance of tenant needs along with healthy and understanding relationships and a professional commitment to satisfaction.

Key to Success

1. We endeavor to provide our residents with the most caring, home-like environment possible while maintaining respect and dignity, and while promoting independence through personal choice

2. We are committed to the provision of high quality care for our residents and ongoing support for family and loved ones.

3. We encourage community involvement in our activities and we reach out to welcome others to participate in our community.

4. We strive to create a supportive community atmosphere and retirement lifestyle with regular recreation and special events to enhance our residents' enjoyment of life and companionship

Company Summary Chiangrai Wellness Co., Ltd.(CWC), created as a Company Limited based in Chiangrai Province, Thailand. It will be owned by its principal investor, Mr.Cheeravit Pongsatayachon, is acting the Managing Director and holds a 50% stake in the company, Dr.Witoon Nirooktisan is acting the President and holds a 20% , Mrs.Alongkorn Chaengchareon is acting the Finance Director and holds a 20% share of the company. The other 10% is held by silent investors. Company Ownership Chiangrai Wellness Co., Ltd., is registered as a Law Juristic Entity under the Civil & Commercial Law. by its Founder and the Managing Director, Mr.Cheeravit Pongsatayachon, the experienced businessman and health tour provider.


13

Start-up Summary

Start-Up Financing

฿0

฿10,000,000

฿20,000,000

฿30,000,000

฿40,000,000

Expenses Assets Investment Loans

Start-Up Financing Plan

The total start-up expenses (including legal, stationery, brochures, consultants, expensed equipment, and other) come to 54,054 . Start-up assets required $28,242,041 in long-term assets to purchase a land, land improvement cost, construction, purchase tools, equipments, furniture, and vehicles. We also need cash $300,000 for inventory items and $3,862,162 for cash flow to handle the architect, legal fees and administration & marketing prior to opening and reserve for operating cost during the construction period and the operating cost for the first year of project operation. Long-term assets of $28,242,041 and long-term liabilities of $31,863,662 are anticipated. The details are described as shown below. Start-Up Financing Plan

Legal $13,514 Stationery etc. $1,351 Brochures $0 Consultants $1,351 Insurance $0 Rent $0 Research and development $16,216 Expensed equipment $10,811 Other $10,811 ---------------------- Total Start-up Expense $54,054


14

Start-up Assets Needed Cash requirements $3,862,162 Start-up inventory $300,000 Other Short-term Assets Total Short-term Assets $4,162,162 Long-term Assets $28,242,041 ---------------------- Total Assets $32,404,203 Total Start-up Requirements: $32,458,257 Left to finance: $ Start-up Funding Plan Investment Owner $54,054 Invested Capital $540,540 Other $0 Total investment $594,594 Short-term borrowing Unpaid expenses $0 Short-term loans Interest-free short-term loans $0 Subtotal Short-term Borrowing $0 Long-term Borrowing $31,863,662 Total Borrowing $31,863,662 Loss at start-up ($54,053) Total Equity $540,541 Total Debt and Equity $32,404,203

Investment Plan

KASALONG HOME had already invested the amount of 594,595 as a registered capital investment, which having been paid amount of 54,054 for the cost of the surveying of the project feasibility study, legal costs, stationery and expenses associated with opening our head office in Chiangrai province. KASALONG HOME is seeking finance from any lender or JV partner the amount of $31,863,662. With this amount, KASALONG HOME can start at once to purchase the land and begin the project construction, which it will be completed within 14 months. KASALONG HOME will pledge the project itself as assets against the loan amount.


15

Capital Utilization

Capital Utilization

Vehicles2%

Infrastructure5%

Tools & Equipments and Furniture

16%

Implementating Expenses

7%Cash Flow for

Operation6%

Construction45%

Land Purchase & Development

19%

Capital Utilization

The capital amount of $32,404,203 shall be utilized in the project for the following:

Description Owner Loan TotalLand Purchase & Development 270,270 5,810,757 6,081,027Construction 14,635,135 14,635,135Infrastructure 1,621,622 1,621,622Tools & Equipments and Furniture 5,278,378 5,278,378Vehicles 27,027 598,851 625,878Implementating Expenses 143,243 2,178,379 2,321,622Cash Flow for Operation 100,000 1,740,541 1,840,541 Total 540,540 31,863,662 32,404,203

Capital Utilization


16

The project owner will invest 540,541 from his part and needs more $31,863,662 from Lender or JV Partner.

Use of Capital Funds Item Description Unit Amount Total

1 Land Purchase & Development 1.1 Land 250 rais @ $ 16,216 250 4,054,000

1.2 Street inside the project (Km) 20

Kms. 945,946 1.3 Land Hill Development 4 Hills 540,541 1.4 Gardening & Landscaping 540,541 6,081,027 2 Construction 2.2 Senior House 150 2,702,703 2.3 Senior Condominium 50 810,811 2.4 Nursing Home 100 1,891,892 2.5 Guest Hotel 150 3,243,243 2.6 Restaurants 3 405,405 2.7 Leader Apartment 30 81,081 2.8 VIP House 3 40,541 2.9 International Dental Clinic 1 540,541 2.10 Ayurvedic Clinic 1 216,216 2.11 Chinese Medical Clinic 1 216,216 2.12 Physical Clinic 1 216,216 2.13 SPA & Beauty Salon 1 675,676 2.14 Club House 1 675,676 2.15 Health Shop 1 135,135 2.17 Coffee Corner 4 54,054 2.18 International Conference Hall 1 810,811 2.19 Mini Theater 1 270,270 2.20 Staff Apartment 200 540,541 2.21 Office Building, Reception Hall 3 270,270 2.22 Swimming Pool 3 162,162 2.23 Senior In-door Sport Building 1 540,541 2.24 Store 1 40,541 2.25 Laundry 1 40,541 2.26 Internet Service Center 1 54,054 14,635,135 3 Infrastructure 3.1 Electric System & Solar Cell 270,270 3.2 Water Supply System 270,270 3.3 Drainage & Waste Water Treatment 540,541 3.4 Waste & Garbage System 135,135 3.5 Security System 162,162 3.6 Communication, Satellite, 162,162 TV, Telephone 3.7 Computer Software 81,081 1,621,622


17

4 Tools & Equipment and Furniture 4.1 Hotel, Condo, Senior House, 350 540,541 Nursery Home, Office etc. 4.2 Health Care Services 1,351,351 4.3 SPA 270,270 4.4 Kitchen 4 75,676 4.5 Dental Clinic 1 1,351,351 4.6 Thai, Chinese, Physical Doctor Clinic 3 135,135 4.7 Clubhouse 1 405,405 4.8 Health Shop 1 27,027 4.9 Coffer Corner 4 27,027 4.10 Conference Room 1 270,270 4.11 Mini Theater 1 54,054 4.12 Church, Mosque 2 13,514 4.13 Spot 1 135,135 4.14 Library 1 54,054 4.15 Laundry 1 135,135 4.16 Staff Quarter 1 27,027 4.17 Director Office 270,270 4.18 Office 135,135 5,278,378

5 Vehicles 625,878 5.1 11 Passengers Van 6 210,811 5.2 Ambulance Car 2 189,189 5.3 Sedan Car 5 67,568 5.4 Pick-up Truck 4 75,676 5.5 Sedan Car (Guest) 3 27,027 5.6 Multi Purposes Car 2 44,595 5.7 Motorcycle 7 5,405 5.8 Bicycle 35 2,365 5.9 Electric Bicycle 8 3,243 5.10 Golf Car 2 10,811 625,878

6 Implementation Expenses 6.1 Funding Consultant Fee 1,700,000 6.2 Temporary Office 270,270 6.3 Architecheral Design 270,270 6.4 PR, Advertising & Marketing 81,081 2,321,622

7 Cash Flow for Project Operation 7.1 Salary & Wage for 2 years 540,541 7.2 Inventory 300,000 7.3 Others 1,000,000 1,840,541 Total 32,404,203

Breakdown of Capital Utilization


18

Loan Liquidation Plan The loan terms shall be 15 years and will be liquidated within 14 years with 1 year grace period during the construction of the project. The interest rate will be 5% per annum and shall be payable in arrears annually. The loan principal shall be payable annually until the loan completely liquidated. For venture capital, KASALONG HOME is ready to negotiate with JV partner for their terms and conditions as well as the equity proportion holding in the project. The Loan repayment shall schedule as follows:

Loan Amount: 31,863,662Interest Rate: 5%Loan Term: 15 years

Year Interest Principal Balance1 Grace Grace 31,863,6622 1,593,183 1,000,000 30,863,6623 1,543,183 1,000,000 29,863,6624 1,493,183 1,000,000 28,863,6625 1,443,183 2,000,000 26,863,6626 1,343,183 2,000,000 24,863,6627 1,243,183 2,000,000 22,863,6628 1,143,183 3,000,000 19,863,6629 993,183 3,000,000 16,863,66210 843,183 3,000,000 13,863,66211 693,183 3,000,000 10,863,66212 543,183 3,000,000 7,863,66213 393,183 3,000,000 4,863,66214 243,183 3,000,000 1,863,66215 93,183 1,863,662 0

13,604,564 31,863,662

Loan Repayment Schedule

Loan Repayment Schedule


19

Project Description KASALONG HOME is a project that provides an “International Long Stay Villa for Health Promotion and Recreation” for foreign customers who are seeking the living comfortable location with fully health facilities which focusing to the senior and retired person worldwide who willing to reside their end of life in Thailand.

KASALONG HOME is located in Chiangrai Province; the northernmost province of Thailand is about 842 kilometers north of Bangkok. Situated on the Kok River basin, Chiangrai covers an area of approximately 11,678 square meters with an average elevation of 580 meters above sea level. The province, which is located within the renowned Golden Triangle area where Myanmar, Laos and Thailand converge, is also known as the gateway to Myanmar, Laos and Southern China Historically, Chiangrai, was founded in 1262 by King Meng Rai, was the first capital of the Lanna Thai Kingdom (Kingdom of a million rice fields), which was later conquered by Burma. It was not until 1786 that Chiangrai

became a Thai territory and was proclaimed a province during the reign of King Rama VI in 1910.

Today, Chiangrai is a traveler’s paradise endowed with abundant natural tourist attractions and antiquities; the province itself is evidence of past civilization. Attractions range from magnificent mountain scenery, ruins of ancient settlements, historic sites, Buddhist shrines and ethnic villages as the province is also home to several hill tribes who maintain fascinating lifestyles. For those interested in the natural side of Chiangrai, jungle trekking is recommended along various trails.

Location

Airport

ProjectSite

Golden Triangle

Mae Sai

Wad Rong Khun

Site Map


20

The project is located on the beautiful landscape area of 250rais (100 acres) at Tambol , Muang District, Chiangrai Province, 22 km. from Chiangrai International Airport and 8 km. from Chiangrai city. The project location is surrounded with a beautiful mountain landscape and lake which is suitable to develop it as a “ Retirement Community” to accommodate and facilitate both short stay and long stay customers with fully facilities of health services and recreation amenities.


21

Zone

Project Zone


22

The project is provided into 4 zones to facilitate the customers as follows: 1. Health Zone Consists of SPA Therapy, Beauty Salon, Naturopathy Clinic, Thai & Chinese Traditional Medicine Doctor, Alternative Medicine Doctor, Ayurvedic Doctor, International Dental Clinic, Holistic Health Clinic, Thai & Chinese Massage, Qi-Gong Therapy, Swimming Pool, Sauna, Club House, Natural Foods Center, Health Products Shop, Fitness Center, Nutritious Foods Shop & Restaurant etc.

SPA & Health Zone Perspective


23

2. Hotel Zone This zone provides a 4 stories deluxe hotel - 150 rooms, 2-3 bedrooms, to facilitate both general short stay and long stay customers. The charge rate about 160-210 /person/day.

Hotel Perspective


24

3. Senior Residence Zone: This zone will consist of 150 houses & condominium 50 units, 100-150 m2 . The rental rate of house between $1,486-3,243 per month and condominium rental rate is $1,486 per month.

Condo

Condo & Senior House Perspective


25

4. Nursing Home Zone: This zone consists of 2 stories building - 100 units nursing home for older person and disable person both Thai citizen and foreigner. The rental rate is $1,757 per month.

Senior Nursing Home Perspective


26

Feature


27

Perspective View of Project

KASALONG HOME offers the spacious comfort of a private residence with the security and services of a hotel. With a vast variety of room types from Studio, to Family Suite, there is always the right one to suit client’s preference. All rooms have private balconies and are equipped with standard hotel's facilities including air-conditioners, bath rooms with separated bath tubs and shower rooms with hot and cold water, TV with 40 international cable programs, mini bars with fridges, IDD telephones and in-room electronic safes. All units have well appointed kitchen and dining corners. The kitchens include large fridges, hot plates, hoods, sinks, microwave ovens and a full selection of chinaware, cutlery, glassware, pots and pans. KASALONG HOME also has comprehensive amenities are as follows:

• SPA & Sauna • Jacuzzi • Thai & Chinese Traditional Massage • Thai & Chinese Alternative Medicine Doctor • Physical Clinic • Dental Clinic


28

• Mind Control Center • Naturopathy • Ayurvedic Doctor Clinic • Holistic Health • SPA Therapy • Exercise & Fitness Center • Nutritious Food Shop & Restaurant • Natural Food Center • Club House & Swimming Pool • Seminar Courses relating to Healthy & Alternative Medicine Doctor Courses. • International Conference Hall • Rehabilitation Center for Foreign Elder Person • Mind Control Room • Car Park Lot.

Services Offered :

• All meals • Laundry • Housekeeping • Maintenance • Communal lounges • Communal dining rooms • Activities and outings • Church services • Hairdressing services • Financial service • Day Care • Mini Theater • Indoor Spot

Health Care Services:

• Registered Nurses, Care Aides - 24 hours • Dietician • Minister • Physiotherapist • Pharmacist • Medical Physician • Dentist


29

• Podiatrist • Recreational Therapist

Services Schedule :

• 24 hour staffing (care staff on site at all times). Staff can respond to any emergency

situations that may arise, day or night. • Three meals per day (served in our dining room) • Weekly housekeeping (including bed change, suite cleaning, removal of garbage • Weekly laundry service (personal as well as flat linens) • Activity and recreation programs • Assistance with bathing, medications, dressing, monitoring (all as required) • Transportation (our own bus) for shopping, outings

Activity Program: KASALONG HOME provides customers with the following activity programs:

1. Physical & Recreation: Health Massage, SPA, Sauna (Infrared), Acupuncture

Treatment, Hydro Therapy, Qi-Gong Therapy, Herbal Therapy, Aerobic Dance, Thai Classical Dance, North-Eastern Classical Dance etc.

2. Mind Control: Meditation, Memory Reconciliation, Music for Health, Singing, Games etc.

3. Educational Courses : Health, Diabetes, Bone & Joint, Feet Treatment, Nutrition, Cooking for Health etc.

4. Special Courses: Weight Control, Loss Weight, Rehabilitation, Beauty Course, Administrative Course, First Born Nursery Course etc.

5. Special Tour: Golden Triangle, Doi Mae Sa Long , Doi Tung Palace, Phu Chee Fah, Myanmar Border (Ta Khee Lek)


30


31

Activities Program Construction Plan

KASALONG HOME will implement the project construction at once upon receiving the funds from lender or JV partner. The construction will be completed within 14 months. The construction works plan will be as scheduled in the Construction Plan below.

Item Description Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec1 Surveying, Designing, Engineering System2 Contractor Contract3 Land Developing, Layout4 Foundation & Piling5 1st Floor6 2nd Floor7 3rd Floor8 Roof Structure & Roofing9 Laying & Plastering, Door & Window10 Ceiling11 Sanitary & Electricity System12 Floor & Wall13 Painting14 Interior Decorating & Furniture15 Gardening & Road16 Clearing and completing

Construction PlanMonth

Construction Plan


32

Technology KASALONG HOME will have the most up-to-date technology provided both to the customers and to the subcontractors and other clients.

1. Ethernet ports and/or modem jacks will be installed in each unit developed by KASALONG HOME. 2. Access to a 24-hour copy/fax center located on the premises. 3. Each unit will contain an emergency panic alert that will automatically go through to the manager and the local police department.

Future Products and Services In the future, KASALONG HOME will look to give each department within the company the opportunity to become a more independent entity. This will make expansion efforts more efficient, and will provide specialists in their departments the chance to become more focused in their field. We are in the process of conducting surveys in order to determine the best possible markets for hospital to facilitate the occupants and the people in the KASALONG HOME community. Market Analysis Summary Below charts shown the number of old ages population of the world and the foreign retirees touring into the Kingdom of Thailand.

Increasing Number of Old Age Population 1970-2150.

Source: UN Population Division Department of Economic and Social Affairs


33

Number of Old Age Population of Various Countries 1997.

Country Population Old Age

Population Old Age %

USA 267,955,000 55,913,000 20.9 Japan 125,717,000 35,221,000 28.0 Germany 84,068,000 23,846,000 28.4 U.K. 58,610,000 14,971,000 25.5 France 58,470,000 14,678,000 25.1 Italy 57,534,000 16,559,000 28.8 Spain 39,244,000 10,257,000 26.1 Netherlands 15,653,000 3,603,000 23.0

Source: US Bureau of the Census, International Data Bas Number of Senior Citizen & Senior Retirement Touring to Thailand1996-2000

Senior CitizenCome to Thailand between 1996-2000

1996 1,126,800 Person1997 1,115,661 Person1998 1,170,832 Person1999 1,347,157 Person2000 1,422,496 Person

Senior Retirement

1996 135,856 Person1997 124,255 Person1998 156,546 Person1999 174,865 Person2000 167,424 Person

Come to Thailand between 1996-2000

Source: TAT


34

Marketing Strategy Market Needs KASALONG HOME has surveyed the market needs of this section, have found that the utmost needs came from:

1. Retirees from various countries with particular emphasis on the Japanese & Korea market; the European market such as British, German, Dutch, and Scandinavian; the overseas Chinese market and those from the rest of the world.

2. Snowbirds, those who will come from cold countries during their winter season , like Korea and Sweden. These people have already come to Thailand to enjoy seaside activities, rural/mountain hill-tribe life and to enjoy exciting and adventurous experiences for two to three weeks. Some are using Thailand as a hub to travel to nearby countries such as Myanmar, Laos and Cambodia (Indochina).

3. Students and trainees from overseas are in this group. Thailand has some economic advantages that many international schools choose to operate their affiliations or branches to teach foreign students in various subjects. Students may not be big spenders but their presence would generate other income for the country.

4. The fourth group is for those who attend sports training camps. Many sports training associations have come to Thailand and brought along their coaches and athletes to conduct their programs at different sites around the country.

Those are the main market segmentation of our products and services. Market Trends In accordance with a government policy to promote the tourism industry as a means to direct foreign currency into the country and consequently to improve the economic status, the Tourism Authority of Thailand (TAT) has created several programs and activities to promote Thailand as a major travel destination and to expand the current markets to cover the niche segment. Due to these ongoing promotions by TAT, the numbers of tourists coming into Thailand have increased every year. However, when taking into consideration the average length of stay in Thailand for the past five years, there has been a decrease of approximately 1.43% per year. Therefore, TAT has realized that it should expand its markets to include those tourists who spend a long period of time in the country. These kinds of tourists will consequently spend more money during their stay in Thailand. Not only for directing more income into the country, the promotion to this market will also strengthen the country's economic status as well as expand the production and service sectors relating to this industry. Therefore, TAT has promoted and developed Long Stay Tourism in Thailand by proposing the issues facilitating the arrival procedures for aged tourists (55 years and above) to the Cabinet. On 7 and 14 July, 1998, the Cabinet approved the proposal in principle and approved its details to be in practice on 8 September, 1998.


35

Later, on 26 June, 2001, the Cabinet approved the proposal by the Minister to the Prime Minister's Office (Mr.Somsak Thepsutin) to promote Long Stay Tourism and to set up a National Committee to support this program. The Minister to the Prime Minister's Office will be the Chairman of the Committee while other government authorities will support the program On 25 December, 2001, the Cabinet approved the establishment of the Thai Long Stay Management Corporation Limited. to promote the program through the Supply Chain Management System. The corporation will be situated at the TAT office at Ratchadamnoen Nok Avenue, Bangkok. Market Growths The market for high quality, reasonably priced rental units has been growing at a rate of 6.7% since 2000. Long Stay area's rental rates have remained even, averaging 2,030 or 16.22 per square meter, during the fourth quarter of 2004. The Chiangrai properties market is experiencing rapid employment growth that is fueling demand for accommodation, but not many new units are emerging. Not only is KASALONG HOME pioneering this particular niche of affordable quality living and amenities, but also it is capitalizing on the strength of the current economic growth in Chiangrai. Segment Strategy We believe that our unparalleled level of quality and technological amenities put KASALONG HOME into a niche of its own. This will be the focal point of all our marketing and advertising efforts. These segments are also easily reached through local newspapers and publications, as well frequent open house displays. It is essential for KASALONG HOME patrons to understand that their needs are our priority. Market Segmentation

ภายในประเทศ ตางประเทศนักบริหาร-นักธรุกิจ

ผูสูงอายุ

สตรีทีรั่กความงาม

ขาราชการชั้นผูใหญ

ผูที่มปีญหาสขุภาพ

นักบริหาร-นักธุรกิจ

ผูสงูอายุมูลนิธ-ิสมาคมสุขภาพ

สหภาพแรงงาน

นักทองเที่ยว

TargetTargetEast

Japan

Taiwan

Korea

Malaysia

Singapore

West

United

EnglandGermany

France

Italy


36

Market Segment By Group

Disable & Sick Person

Group30%

Senior Group60%

Educational Group

5%

Training Group

5%

Market Segment By Countries

Scandinavia, Western

Europe, North

America60%

Japan & Other

Countries30%

Thai10%

Market Segmentation KASALONG HOME will target four distinct customer segments by groups and countries are as follows:

By Group

1. Senior Group:

- Elder Persons & Retirees from various countries with particular emphasis on the Japanese & Korea market; the European market such as British, German,

Dutch, and Scandinavian; the overseas Chinese market and those from the rest of the world. This group will spend their “End-Of-Life” for Touring and Rehabilitating. Most of these people will stay longer time or for whole life in the country where less expensive. - We target 60% segment from this group.

2. Disable Group:

- Disable or sick person who has no relative to take care and wish to come for curing and treatment.

- We target 30% segment from this group.

3. Educational Group:

- Students and trainees from local people and overseas who want to attend the educational courses or special health courses. This group may not be big spenders but their presence would generate other income for the country



37

4. Training Group:

- The fourth group is for those who attend sports training camps. Many sports training associations have come to Thailand and brought along their coaches and athletes to conduct their programs at different sites around the country.


By Country

- The largest segment is Scandinavia, Western Europe, and North America. We expect potential customers from this segment 60%. - The second segment is Japan, Korea and other countries. We expect

potential customers from this segment 30%

- The last segment is Thai. We target 10% for this segment.

Market Segment Analysis

Potential Customers Target

Retired & Elder Person 60% Disable & Sick Person 30% Snowbirds 10% Potential Countries Scandinavia, Western Europe And North America 60%

Japan, Korea & Other Countries 30% Thai 10% Total 100%

Main Competitors Due to there are a few enterprises who do the Long Stay business in Thailand where are in Bangkok, Phatumthani, Karnchanaburi, Rayong and Chiangmai, so there are a few competitors and those ones not our direct competitor. Strategy and Implementation Summary KASALONG HOME emphasizes on 7 Ps marketing strategy, which they are:

1. Products: Must Be Essence and Excellence.


38

2. Price: Must Be Fair & Competitive 3. Place: Must Be Convincingly & Apparently 4. Promotion: Must Be Perpetually & Progressively 5. People: Must Be Courtesy & Hospitality 6. Process: Must Be Accurately & Validity 7. Package: Must Be Interesting & Stimulating

Strategic Advantage

Location

• Thailand is in the hub of international air travel. • Climatically, there is plenty of sunshine and in different parts of the country, the

climate conditions can be chosen all year round. Natural Beauty

• There are traditional ways of life in rural areas, mountains, beaches and world-renowned tourist attractions in the North and South. Thailand is also surrounded by interesting countries such as those in Indochina.

Cultural Heritage

• Thailand is a mixed culture with a multi-racial community who has been living in harmony over the past centuries without any major conflict. Many historical sites have been declared World Heritage by UNESCO.

Safety

• Thailand is a democratic country governed by Rule of Law. People live under the constitution which protects individual rights as in any civic society.

Cost of Living

• Despite the survey conducted by some travel magazines, Thailand is still one of the best choices for tourists in terms of the cost of living. We estimate that 1,486 a month for luxurious condo is a sum that visitors can enjoy life quite well in Chiengrai. In the provinces, the cost would be relatively less except in Chiang Mai, Pattaya and Phuket.

• Long Stay visitors are not short-term tourists. They do not go to five-star hotel for accommodation, or meals. They would rather try to live like the local people if we can show them how.


39

Quality of Living

• Thailand has been an open society since the Sukhothai era. Foreigners and Thais enjoy freedom of speech and freedom of thought. When tourists come here, there would be many choices for them to choose and see in every day life.

• Thailand is now a modern society with plenty of entertainment facilities, public utilities and other facilities of an international standard. These can make tourists feel at home provided that we add conveniences for them such as foreign language signboards in public places. A proposal concerning the improvement of the hot-line service to tourists and on the state-of-the-art technological interactive website is in the process under the new scheme.

People and Services Available

• Tourism development has been promoted by the government for four decades. The tourism industry has provided jobs and other opportunities to many other related industries. It becomes a major income contributor supported by millions of service personnel.

• Thailand has a capacity both in hardware and software to accommodate the increasing number of short-term and long-term tourists. Long Stay tourism is a new opportunity opening up for many categories of industry.

Marketing Strategy Marketing in a highly competitive long stay housing industry depends on the recognition of excellence, as well as a point of difference to display our units in an individualized light. KASALONG HOME will build a reputation upon these components.

We will develop and provide a living environment of unmatched proportion. It starts with the commitment to customer satisfaction and fulfilling their demands. Our commitment to quality and comfort includes safety and 24-hour customer service. The aspect of our living developments that differentiate KASALONG HOME from all other companies is our focus on maintaining the most advanced technological innovations on the market for our tenants. Positioning Strategy For people who desire high-quality living with all the technological amenities available, only KASALONG HOME real estate developer will be able to fulfill their needs and desires at an affordable price. Unlike most other resort and long stay management companies, KASALONG HOME is committed to guaranteeing customers full satisfaction, with 24-hour on-staff service, live answering service, and a website that handles all complaints instantly.


40

Pricing Strategy KASALONG HOME's pricing will be at the top of what the market will bear. We are competing with large firms who have similar complexes. Our prices will be competitive with these larger firms while maintaining the high level of quality and expert management. For example, a Condo unit price is based on average unit value of $1,486 , hotel rate at 162 /day/person. KASALONG HOME, however, must try to follow market pricing trends in order to maintain a competitive advantage. Promotion Strategy The most successful promotion will come in the form of word of mouth. Since we will have own real estate, we will be highly visible to the public. Since our complexes will be in the upper echelon of quality and livability, word will spread through the community about our unique appeal. Along with word of mouth, our most consistent form of promotion will come from ads in local publications, specifically, Bangkok Post, The Nations and The Thai Post, as well as smaller magazines and circulations. We will promote our project via exhibition hall and trade fair periodically. We will also be personally promoting our product within the community and by our own attractive website. We will have brochures available at all offices. These will give the customer a general outline of our units and will explain the benefits of our units. We will also have a monthly newsletter that we will send out to our clients. This newsletter will inform the clients as to the growth and outreach of KASALONG HOME. It will also contain some human-interest stories about our facilities of health cares and amenities. Furthermore, we also focus do the marketing direct to the target customers in the segmented countries in associated with the association related to the old age person, senior person and retired person. Here below are the names list of Associations and Consulting Company whom we are dealing with relating to our marketing plan.

United State of America - America Association Of Naturopathic Physicians - America Holistic Medicine Association - Homeopathic Educational Service - Maharishi Ayurvead Health Center For Stress Management - National Commission On The Certification Of Acupuncture United Kingdom - Institute Of Complementary Medicine - British Complementary Medicine Association


41

- Council For Complementary and Alternative Medicine - Center For Complementary Health Studies - British Acupuncture Council - Holistic Medicine - Homeopathy - Naturopathic Medicine - Acumedic Center (For Chinese and Other Medicine) - Ainswonths Homeopathy Pharmacy Korea - K.T.C.C. Co., Ltd

Distribution Strategy We will focus on providing high-quality living in convenient locations with a wide customer base. It is also important that we remain at the upper echelon in the quality range when compared to competitors. We can only do this by organizing and implementing a sound plan that will assume responsibility for the functionality and appearance of KASALONG HOME properties. We will have an updated Web site for anyone interested in our products and facilities. We will promote direct to the overseas customer, we will work-out with our sales agents and the retired association in Japan, Hong Kong, USA, Scandinavia, U.K. and China to promote our products and services. Marketing Program Our most important marketing program is customer word of mouth. The only way to truly know the quality of our units is through experience; hence we must maintain the highest level of customer satisfaction. Rewards will be given to clients or customers that refer new clientele to the company. We confidently believe that the high level of quality that KASALONG HOME will provide can attract a strong demand for our units. Sales Strategy Sales Goal

• To have occupancy rate at 40% of the total rental unit for the first year of project

operation (2nd year). • To reach occupancy rate at 55%, 70% and 85% at 3rd, 4th, 5th and 6th year

respectively. • To maintain the occupancy rate of 90% every year from 7th year. • To sell Time Sharing Member 1,000 subscribers per year for 2nd, 3rd, 8th , 9th ,14th

and 15th year.


42

Sales Forecast Our sales policy concentrates into 2 categories which they are:

a) Servicing & Products

The total rental unit of KASALONG HOME is 450 units which will be utilized as follows: :

1. 5% - Keep as Non-Performance Unit (NPU- unavailable to sell or giving service in any circumstance e.g. repairing or being occupied incidentally).

2. 30% - reserved for time sharing member’s utilization. 3. 65% - available for sales to general customers.

We expects rate of 75% occupancy for our rental units (hotel, condo, senior house and senior nursing home) which to begin at 40% at the 2nd year and will be 55%,70%,85% for the 3rd,4th, 5th,6th, and 90% from 7th year.

b) Time Sharing Membership We expect to get a “Time Sharing Membership” of 1,000 subscribers each year for 2nd

and 3rd year and another 2,000 in year 8th-9th,14th and 15th year. Each subscriber will pay member fee $10,000 one time charge and they have privilege to spend their vacation time with free of charge of rental and an additional provided facility for 15 days per year for the entire member contract of 5 years.

Below are the chart shows the sales target and incomes of the project for 15 years operation. KASALONG HOME will have sales value of 20,500,868 at second year and reach the value of 56,709,976 at the 15th year. Which shall breakdown per each category are as follows:

Year 1 2 3 4 5100% Construction 40% 55% 70% 85%

Hotel 10,188,486 4,075,395 5,883,851 7,862,964 10,025,280 Senior House 3,299,189 1,319,676 1,905,282 2,546,149 3,246,340 Nursing Home 2,108,108 843,243 1,217,432 1,626,932 2,074,339 Health Care 2,918,919 1,167,568 1,685,676 2,252,676 2,872,161 SPA 731,286 292,515 422,318 564,370 719,572 Restaurant 1,332,973 533,189 769,792 1,028,722 1,311,620 Member Fee 10,800,000 10,800,000 10,800,000 Other Facilities 3,163,784 1,265,514 1,827,085 2,441,650 3,113,104 Misc 509,424 203,770 294,193 393,148 501,264

35,052,170 20,500,868 24,805,628 18,716,612 23,863,681


43

Sales Value per Category

6 7 8 9 1085% 90% 90% 90% 90%

Hotel 10,526,544 11,703,040 12,288,192 12,902,601 13,547,731 Senior House 3,408,657 3,789,625 3,979,106 4,178,061 4,386,965 Nursing Home 2,178,056 2,421,486 2,542,560 2,669,688 2,803,172 Health Care 3,015,770 3,352,826 3,520,467 3,696,491 3,881,315 SPA 755,551 839,995 881,994 926,094 972,399 Restaurant 1,377,201 1,531,124 1,607,680 1,688,064 1,772,467 Member Fee 12,960,000 12,960,000 Other Facilities 3,268,759 3,634,091 3,815,796 4,006,585 4,206,915 Misc 526,327 585,152 614,410 645,130 677,387

25,056,865 27,857,338 42,210,205 43,672,715 32,248,351

11 12 13 14 15 Total90% 90% 90% 90% 90%

Hotel 14,225,118 14,936,374 15,683,192 16,467,352 17,290,720 167,418,353 Senior House 4,606,313 4,836,628 5,078,460 5,332,383 5,599,002 54,212,647 Nursing Home 2,943,331 3,090,497 3,245,022 3,407,273 3,577,637 34,640,669 Health Care 4,075,381 4,279,150 4,493,108 4,717,763 4,953,651 47,964,003 SPA 1,021,019 1,072,070 1,125,673 1,181,957 1,241,055 12,016,582 Restaurant 1,861,091 1,954,145 2,051,853 2,154,445 2,262,167 21,903,561 Member Fee 15,552,000 15,552,000 78,624,000 Other Facilities 4,417,260 4,638,123 4,870,030 5,113,531 5,369,208 51,987,650 Misc 711,256 746,819 784,160 823,368 864,536 8,370,918

33,860,768 35,553,807 37,331,497 54,750,072 56,709,976 477,138,384


44

The pro-forma operating incomes of the project for the period of 15 years as shown in the chart hereunder.

-10,000,000

0

10,000,000

20,000,000

30,000,000

40,000,000

50,000,000

60,000,000

US$

Year

Pro-forma Revenue

Sales Value 0 20,500 24,805 18,716 23,863 25,056 27,857 42,210 43,672 32,248 33,860 35,553 37,331 54,750 56,709

Cost of Sales & Expenses 600,32 6,378, 7,953, 8,198, 9,818, 10,293 12,538 13,278 12,556 12,963 13,595 14,258 16,510 17,475 16,688

Operating Profits -600,3 14,121 16,852 10,518 14,044 14,763 15,318 28,931 31,116 19,284 20,265 21,294 20,820 37,274 40,021

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Pro-forma Operating Incomes.

Milestones The accompanying table lists our company's milestones, including dates, management responsibility. This table indicates our expectations from the company as well as outlining our plan for start up. This is an initial assessment, and KASALONG HOME will continually adjust in order to sustain our business in all the different departments.


45

Business Plan Milestones:

Item Activities Schedule 1 Project Implementing /Seeking JV Partner Conducting 2 Business Plan Preparing/Submitting for Funds Nov 2006 3 Increasing Registered Capital/Company Establishment Nov 2006 4 Construction Design/Licensing/Land

Developing/Building Construction & Decoration Dec 2006 – Nov 2007

5 Marketing Implementation Apr –Nov 2007 6 Operating Plan/Job Description/Recruiting/Training Nov -Dec 2007 7 Opening Jan 2008

Business Plan Milestone

Management Summary The initial management team depends on the founders themselves, with back-up assistance from the property management department of KASALONG HOME. As we continue to grow, we will establish satellite offices in all of our living developments. It will also be necessary to take on additional help in the marketing and R & D sectors as growth continues.

Organizational Structure KASALONG HOME depends on an organized division of responsibilities in order to run an efficient, diversified enterprise. Main decisions and responsibilities will be divided between the four top partners. They will focus on maintaining high quality and a cohesive business entity. Top division managers will be given specific responsibilities such as marketing, finance, strategic management, or research and development.


46

KASALONG HOME is completely departmentalized. The main departments are Administration, Marketing, Hotel, Senior House, Senior Nursing Home, SPA and Health. KASALONG HOME employees at the beginning of the project operation will be approximately 476 employees.

Dr.Witoon Nirooktisarn, will be a President, Mr. Cheeravit Pongsatayachon , the founder of the company, assumes the responsibilities of the Managing Director, while his co-partner, Mrs. Alongkorn Chaengcharoen, will be responsible for the duties of Admin & Finance Director. Mr. Ekawat Poukam. the other co-partner will act in the capacity of a General Manager to control and supervise the hotel management and its operations. The company will make all decisions in accordance with the company mission. Employees are delegated tasks based upon their specialty.

PresidentBoard of Director

Managing Director

Health Division

General Manager

Hotel Division Senior House

Division

Senior Nursing Home Division

MarketingDivision

Admin. Division

Advisor

Massage Thai Clinic

Chinese Clinic

Club House

Front

House Keeping

F/B

Engineer

Gardener

Personal

House Keeping

Driver

Gardener

Front

House Keeping

F/B

Gardener

Nurse

SPA Division

Finance

Security

H/R

Overseas

Thai

Organization Chard

Dental Clinic

Organization Chart


47

Management Team

Top Management Team Dr. Witoon Nirooktisarn – President: 58 years, Degree in Medical Science, 30 years experience in Orthopedic and Ayurvedic Doctor. Mr. Cheeravit Pongsatayachon - Managing Director: 53 years, Degree in Politic Science, with 17 years experienced in Medicine Detailer, 6 years in Health Tour and Special Lecturer in Health Services at Educational Institute , Kun Ming , China. Presently, acting as Health Resort Manager of Naerun Chara Hot Spring Resort, Chiangrai Province. Mrs. Alongkorn Chaengcharoen - Admin & Finance Director: 48 years, Degree in Public Health, Degree in Nursery & Midwifery , with 20 years experience in Public Health and Nursing. Mr. Ekawat Poukam, General Manager: 34 years, Degree in Computer Science and Master Degree in Information Technology, 10 years experience in Computer System & Software and Hotel Manager. Every six months, the four top partners will assess the results of these tasks, and the personality of the employee involved, to determine promotion and/or salary issues. Management Team Chairman: Dr.Witoon Nirooktisan (Physician) Managing Director: Mr.Cheeravit Pongsatayachon


48

(Health Administrator) General Manager: Mr.Ekawat Pookum (Hotel Administrator) Alternative Medical Doctor: Dr.Sirintorn Cholitakul (Physician) Thai Medical Doctor: Miss Mukda Chantaneeya (Physician) Chinese Medical Doctor: Sew I-Chiang (Physician) Senior Health Care Manager: Mrs. Alongkorn Chaengcharoen (Nurse) Physical & Recreation Manager: Mis.Kanokporn Homnan (Physicalist) Nutrition Manager: Mrs.Rewadee Rouyam (Nutritionist) SPA & Beauty Manager: Mrs.Pasinee Sathirat (SPA Specialist) Room Manager: Mr.Peerasak Bancheun (Hotel Administrator) Marketing Manager: Miss Porttip Nantachai (Marketing) Accounts & Finance Manager: Mrs.Patcharee Bussabok (Accountant) Food & Beverage Manager: Mr.Tanasilp Kongtiang (F & B) Advisor Team Alternative Medicine Doctor: Dr.Petchara Lorvithaya Health Promotion Clinic – McCormick Hospital Chinese Medical Doctor: Mr.Suthisak Pavorathisan Chinese Medical University, Chan Tu Senior Nutrition: Mr.Vatcharapol Thamkoon Food Scientist , U.K Health & Beauty: Dr.Vithan Thanavuth Chulalongkorn University Overseas Market Mr.Kevin Lee Mental Health: Mr.Visit Wungvinyu Senior Nursery Care: Mrs.Ounchai Songkroh Health Educator 9 Management Team Gaps The present team requires business development and administrative support. Most of the partners have been working in business environments where this kind of support was provided to them as part of a larger organization.

KASALONG HOME will turn to Dynamic Public Relations to help create business development programs, such as speaking opportunities and magazine article insertions, as well as forums and seminars that are important to our ongoing development.

Regarding administration, we need a strong finance manager to guard cash flow. Our partners are not accustomed to the worries of cash flow, but they have the sense to listen to reason and deal with constraints if the finance manager provides the proper information.


49

Financial Analysis We want to finance growth mainly through cash flow. We recognize that this means we will have to grow more slowly than we might like. The most important factor in our case is collection days. We cannot push our clients hard on collection days. Therefore, we need to develop a permanent system of receivables financing, using one of the established financial companies in that business.

General Assumptions

General Assumptions Short Term Interest Rate 8.00%Long Term Interest Rate 5.00%Payment days 30Collection days 45Inventory Turnover 12.00Tax Rate Percent 30.00%Household Tax Annual Earn /12 *1.5Insurance Premium 0.2%Expenses in cash 10.00%Sales on credit 70.00%Allowance & Food 20.00%Income & Expenses Annually Increase 5%Loan Term (Year) 15


50

Break-Even Analysis

With fixed costs of $879,616 per month (sales cost (without member fee) + operating expenses + interest + household tax & insurance ). We will need customer 108.5 persons per day (3,255 persons per month) to spend at least $270.27 /day /person (for the rental cost and other facilities), to cover our monthly expenditure cost.

Breakeven Analysis

Profits

Sales

฿-200,000

฿-400,000

฿-600,000

฿-800,000

฿-1,000,000

฿0

฿200,000

฿400,000

฿600,000

฿800,000

1,000 2,000 3,000 4,000 5,000500 1,500 2,500 3,500 4,500 5,500

Expenses Break Even Expenses Break- Even Analysis:

Monthly Person Break-even 3,255 Daily Person Break-even 108.5 Monthly Sales Break-even $879,616 Assumptions: Average Person Sale $270.27 Fixed Cost $879,616


51

Pay Back Break-Even Analysis

Paid Back Break Even

-20,000,000

0

20,000,000

40,000,000

60,000,000

80,000,000

100,000,000

120,000,000

140,000,000

160,000,000

180,000,000

Year

US$

Capital 32,404, 32,404, 32,404, 32,404, 32,404, 32,404, 32,404, 32,404, 32,404, 32,404, 32,404, 32,404, 32,404, 32,404, 32,404,

Sales Value 0 20,500, 24,805, 18,716, 23,863, 25,056, 27,857, 42,210, 43,672, 32,248, 33,860, 35,553, 37,331, 54,750, 56,709,

Net Incomes -2,131, 7,102,2 8,170,3 4,325,5 6,520,7 7,030,8 7,440,9 15,848, 17,292, 10,150, 10,899, 11,635, 11,449, 21,632, 23,420,

Outstanding Loan 31,863, 30,863, 29,863, 28,863, 26,863, 24,863, 22,863, 19,863, 16,863, 13,863, 10,863, 7,863,6 4,863,6 1,863,6 0

Cash Balance 907,70 8,508,2 17,176, 22,000, 28,019, 34,548, 41,488, 55,835, 71,625, 80,273, 89,609, 99,680, 109,56 129,63 152,62

Equity -1,781, 3,190,0 11,360, 15,685, 22,206, 29,237, 36,678, 52,527, 69,819, 79,969, 90,869, 102,50 113,95 135,58 159,00

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Pay Back Break- Even With the debt from loan $31,863,662, KASALONG HOME will pay the interest and principal annually from 2nd year, and will have principal remain of $26,863,662 at the end of 5th year. As the chart above, shown that at the end of 5th year KASALONG HOME have cash on hand $ 28,019,704 with the outstanding debt of $26,863,662. The outstanding debt can pay-out at the end of 5 year ( see the graph line will cross at that period point).


52

Salary & Wage Rate

Salary & Wage Rate

Nrs. Salary(Baht) Salary(USD)Amount (USD)

Year (USD)

General Administration President 1 80,000 2,162 2,162 Managing Director 1 70,000 1,892 1,892 Executive Secretary 1 15,000 405 405 MD Assistant 2 30,000 811 1,622 Personnel Manager 1 25,000 676 676 Personnel Officer 3 8,000 216 649 Account Manager 1 15,000 405 405 Accounting 5 8,000 216 1,081 Finance Manager 1 15,000 405 405 Finance 3 8,000 216 649 Documentation 2 8,000 216 432 Data Base 2 8,000 216 432 Information Technology 3 8,000 216 649 Web Master 2 10,000 270 541 PR Manager 1 15,000 405 405 PR 3 8,000 216 649 Purchase Manager 1 15,000 405 405 Purchaser 3 8,000 216 649 Store Manager 1 15,000 405 405 Store 3 8,000 216 649 Engineering Manager 1 15,000 405 405 General Engineer 2 8,000 216 432 Electric Engineer 1 8,000 216 216 Water Pipe Engineer 1 8,000 216 216 Gardener Supervisor 1 8,000 216 216 Gardener 30 5,000 135 4,054 Security Manager 1 15,000 405 405 Security Supervisor 2 10,000 270 541 Security Man 24 7,000 189 4,541 Driver 3 5,500 149 446 Maid 2 5,000 135 270

Total 108 26,905 322,865 Sales & Marketing Marketing Manager 1 30,000 811 811

Sales Supervisor 2 25,000 676 1,351 Sales 5 8,000 216 1,081 Marketing Documentation 5 8,000 216 1,081

Total 13 4,324 51,892 Guest Hotel


53

General Manager 1 30,000 811 811 Resident Manager 1 18,000 486 486 Sales Manager 1 25,000 676 676 Asst. Sales Manager 2 12,000 324 649 Sales 2 8,000 216 432 Front Manager 1 15,000 405 405 Front 6 8,000 216 1,297 Bell Boy & Girl 5 5,000 135 676 House Keeping Manager 1 15,000 405 405 Supervisor 2 8,000 216 432 Maid 10 5,500 149 1,486 Room Boy 5 5,500 149 743 Laundry Supervisor 1 8,000 216 216 Laundry 6 5,500 149 892 Finance 2 8,000 216 432 F&B Manager 1 25,000 676 676 Restaurant Manager 1 15,000 405 405 Supervisor 2 10,000 270 541 Bartender 5 6,000 162 811 Chef 1 15,000 405 405 Cook 4 13,000 351 1,405 Cook Helper 4 7,000 189 757 Disk Cleaner 5 5,000 135 676 Waiter & Waitress 10 5,000 135 1,351 Bus Boy & Girl 5 5,000 135 676 Clerk 1 7,000 189 189

Total 85 17,932 215,189Senior House & Condo

Senior House Manager 1 25,000 676 676 Nurse 3 15,000 405 1,216 Front Desk 2 7,000 189 378 Maid 20 5,000 135 2,703 Driver 5 7,000 189 946 Data Base 2 8,000 216 432

Total 33 6,351 76,216Senior Nursing Home

Manager 1 25,000 676 676 Receptionist 3 8,000 216 649 Cashier 1 8,000 216 216 Physician 3 50,000 1,351 4,054 Nurse 10 20,000 541 5,405 Attendant 30 5,500 149 4,459 Data Base 2 8,000 216 432 Maid 10 5,000 135 1,351 Driver 5 6,500 176 878


54

Nutritionist 1 15,000 405 405 Cook 3 1,000 27 81 Dish Washer 5 5,000 135 676 Bell Boy & Girl 6 6,500 176 1,054 Service 10 5,500 149 1,486

90 21,824 261,892 Health Care Health Division Manager 1 25,000 676 676

Cashier 1 7,000 189 189 Thai Clinic Clinic Manager 1 15,000 405 405 Ayurvedha Doctor 2 20,000 541 1,081 Nurse 2 15,000 405 811 Receptionist 1 8,000 216 216 Therapist 5 6,500 176 878 Attendant 3 5,000 135 405 16 4,662 55,946 Chinese Clinic Clinic Manager 1 15,000 405 405 Chinese Doctor 3 20,000 541 1,622 Nurse 3 15,000 405 1,216 Therapist 3 6,500 176 527 Attendant 2 5,000 135 270 12 4,041 48,486 Physical Clinic Clinic Manager 1 15,000 405 405 Therapist 5 6,500 176 878 Attendant 5 6,000 162 811 11 2,095 25,135 Dental Clinic Clinic Manager 1 25,000 676 676 Receptionist 2 8,000 216 432 Cashier 1 8,000 216 216 Doctor 1 100,000 2,703 2,703 Helper 3 8,000 216 649 Attendant 3 5,000 135 405

11 5,081 60,973 Total 50 15,878 190,541

SPA SPA Manager 1 25,000 676 676 Receptionist 2 8,000 216 432 Cashier 1 8,000 216 216 Therapist 6 6,500 176 1,054 Attendant 1 5,000 135 135 Beauty Salon 2 8,000 216 432


55

Total 13 2,946 35,351Restaurant

F&B Manager 1 15,000 405 405 Supervisor 1 13,000 351 351 Receptionist 1 7,000 189 189 Cashier 1 7,000 189 189 Chef 1 13,000 351 351 Cook 3 7,000 189 568 Helper 3 5,500 149 446 Disk Washer 3 5,000 135 405 Waiter & Waitress 12 5,500 149 1,784 Bartender 2 9,000 243 486 Laundry 2 5,000 135 270

Total 30 5,446 65,351Other Facilities Health Shop Shop Manager 1 15,000 405 405 Receptionist 1 8,000 216 216 Cashier 2 8,000 216 432 PC 3 6,000 162 486 7 1,541 18,486Conference Room Manager 1 15,000 405 405 Audio Vision Control 2 7,000 189 378 Attendant 5 6,000 162 811 Cashier 1 7,000 189 189 Beverage 2 7,000 189 378 11 2,162 25,946 Club House Club Manager 1 15,000 405 405 Receptionist 2 8,000 216 432 Cashier 1 7,000 189 189 Coffee Corner 4 7,000 189 757 Waiter & Waitress 10 5,000 135 1,351 Attention 5 5,000 135 676 Supervisor 1 13,000 351 351 Chef 1 13,000 351 351 Cook 3 7,000 189 568 Helper 3 5,500 149 446 Disk Washer 3 5,000 135 405 Bartender 2 9,000 243 486 36 6,419 77,027

Total 54 10,122 121,459Grand Total 476 111,730 1,340,757

Salary & Wage Rate


56

Sales Cost & Operating Expenses

1 2 3 4 5 6 7 8Direct Sales CostGuest HotelSalary & Wage 215,189 225,949 237,246 249,108 261,564 274,642 288,374Allowance & Food 20.00% salary 43,038 45,190 47,449 49,822 52,313 54,928 57,675Office Stationery 1.00% rental 40,754 58,839 78,630 100,253 105,265 117,030 122,882F& B Cost for Guest 2.25% rental 91,696 132,387 176,917 225,569 236,847 263,318 276,484F&B Cost for Memers 3 each/day 48,600 102,060 107,163 112,521 118,147 124,055 130,257Package Cost for Members 150 each 162,000 340,200 357,210 375,071 393,824 413,515 434,191Electric & Water 3.00% rental 122,262 176,516 235,889 300,758 315,796 351,091 368,646 Telephone 9,000 9,450 9,923 10,419 10,940 11,487 12,061 Sales Commission 20.00% rental 815,079 1,176,770 1,572,593 2,005,056 2,105,309 2,340,608 2,457,638Fees 2.50% rental 101,885 147,096 196,574 250,632 263,164 292,576 307,205 Others 3.00% rental 122,262 176,516 235,889 300,758 315,796 351,091 368,646

Total 1,771,765 2,590,971 3,255,482 3,979,967 4,178,965 4,594,342 4,824,0593 RestaurantsDirect Sales Cost 35.00% sales 186,616 269,427 360,053 459,067 482,021 535,893 562,688Salary & Wage 65,351 68,619 72,050 75,652 79,435 83,407 87,577Allowance & Food 20.00% salary 13,070 13,724 14,410 15,130 15,887 16,681 17,515Office Stationery 1.00% sales 5,332 7,698 10,287 13,116 13,772 15,311 16,077Equipments 1.80% sales 9,597 13,856 18,517 23,609 24,790 27,560 28,938Electricity & Water sales 38,919 40,865 42,908 45,054 47,306 49,671 52,155Telephone 18,000 18,900 19,845 20,837 21,879 22,973 24,122Fuel 1.00% sales 5,332 7,698 10,287 13,116 13,772 15,311 16,077Music & Entertainment 1.50% sales 7,998 11,547 15,431 19,674 20,658 22,967 24,115Others 5.00% sales 26,659 38,490 51,436 65,581 68,860 76,556 80,384

Total 376,875 490,823 615,224 750,838 788,380 866,332 909,648 Senior Nursing HomeSalary & Wage 261,892 274,986 288,736 303,173 318,331 334,248 350,960Allowance & Food 20.00% salary 52,378 54,997 57,747 60,635 63,666 66,850 70,192Electricity & Water 3.00% rental 25,297 36,523 48,808 62,230 65,342 72,645 76,277Telephone 7,200 7,560 7,938 8,335 8,752 9,189 9,649Sales Commission 10.00% rental 84,324 121,743 162,693 207,434 217,806 242,149 254,256Others 5.00% rental 42,162 60,872 81,347 103,717 108,903 121,074 127,128

Total 473,254 556,682 647,269 745,523 782,799 846,154 888,462Senior House & CondoSalary & Wage 76,216 80,027 84,028 88,230 92,641 97,273 102,137Allowance & Food 20.00% salary 15,243 16,005 16,806 17,646 18,528 19,455 20,427Electric & Water 1.00% rental 13,197 19,053 25,461 32,463 34,087 37,896 39,791Equipments 1.80% rental 23,754 34,295 45,831 58,434 61,356 68,213 71,624Telephone 7,200 7,560 7,938 8,335 8,752 9,189 9,649Sales Commission 10.00% rental 131,968 190,528 254,615 324,634 340,866 378,962 397,911Others 2.00% rental 26,394 38,106 50,923 64,927 68,173 75,792 79,582

Total 293,971 385,574 485,602 594,669 624,402 686,782 721,121


57

SPA

Salary & Wage 35,351 37,119 38,975 40,924 42,970 45,118 47,374Allowance & Food 20.00% salary 7,070 7,424 7,795 8,185 8,594 9,024 9,475Electrict & Water 3.00% sales 8,775 12,670 16,931 21,587 22,667 25,200 26,460Telephone 6,000 6,300 6,615 6,946 7,293 7,658 8,041Equipments 10.00% sales 29,251 42,232 56,437 71,957 75,555 83,999 88,199

Total 86,449 105,744 126,753 149,598 157,078 170,999 179,549Health Care ServicesSalary & Wage 190,541 200,068 210,071 220,574 231,603 243,183 255,343Allowance & Food 20% salary 38,108 40,014 42,014 44,115 46,321 48,637 51,069Electricity & Water 3.00% sales 35,027 50,570 67,580 86,165 90,473 100,585 105,614Telephone 6,000 6,300 6,615 6,946 7,293 7,658 8,041Equipments 10.00% sales 116,757 168,568 225,268 287,216 301,577 335,283 352,047

Total 386,432 465,519 551,548 645,016 677,267 735,345 772,112OthersSalary & Wage 121,459 127,532 133,909 140,605 147,635 155,016 162,767Allowance & Food 20.00% salary 24,292 25,506 26,782 28,121 29,527 31,003 32,553Direct Sales Cost 35.00% sales 442,930 639,480 854,578 1,089,586 1,144,066 1,271,932 1,335,528Electricity & Water 3.00% sales 37,965 54,813 73,250 93,393 98,063 109,023 114,474Telephone 6,000 6,300 6,615 6,946 7,293 7,658 8,041Equipments 10.00% 126,551 182,709 244,165 311,310 326,876 363,409 381,580

Total 759,198 1,036,340 1,339,298 1,669,961 1,753,459 1,938,041 2,034,943MembershipSales Commission 10.00% sales 1,080,000 1,080,000 1,080,000

Total 1,080,000 1,080,000 1,080,000Total Direct Cost 4,468,747 5,675,313 5,681,878 6,865,611 7,208,891 7,899,953 9,374,951

Indirect CostAdministration Salary & Wage 322,865 339,008 355,959 373,756 392,444 412,066 432,670Allowance & Food 20.00% salary 64,573 67,802 71,192 74,751 78,489 82,413 86,534Credit Card Fees 1.50% salary 20,111 21,117 22,173 23,281 24,445 25,668 26,951Electric & Water 22,703 23,838 25,030 26,281 27,595 28,975 30,424Telephone 9,730 10,216 10,727 11,263 11,827 12,418 13,039Office Stationery 16,216 17,027 17,878 18,772 19,711 20,696 21,731Debt Lost 0.50% total sales 102,504 124,028 93,583 119,318 125,284 139,287 211,051Others 1.00% total sales 205,009 248,056 187,166 238,637 250,569 278,573 422,102

Total 763,711 851,092 783,707 886,061 930,364 1,000,097 1,244,502Sales & MarketingSalary & Wage 51,892 54,486 57,211 60,071 63,075 66,229 69,540Allowance & Food 20.00% salary 10,378 10,897 11,442 12,014 12,615 13,246 13,908Ads & Promotion 325K/year total sales 325,000 325,000 325,000 325,000 325,000 325,000 325,000

Total 387,270 390,384 393,653 397,086 400,690 404,474 408,448Total Indirect Cost 1,150,981 1,241,476 1,177,360 1,283,147 1,331,054 1,404,571 1,652,950

Grand Total 5,619,728 6,916,789 6,859,238 8,148,758 8,539,946 9,304,525 11,027,901


58

9 10 11 12 13 14 15Direct Sales CostGuest HotelSalary & Wage 302,793 317,932 333,829 350,521 368,047 386,449 405,771Allowance & Food 20.00% salary 60,559 63,586 66,766 70,104 73,609 77,290 81,154Office Stationery 1.00% rental 129,026 135,477 142,251 149,364 156,832 164,674 172,907F& B Cost for Guest 2.25% rental 290,309 304,824 320,065 336,068 352,872 370,515 389,041F&B Cost for Memers 3 each/day 136,770 143,609 150,789 158,329 166,245 174,557 183,285Package Cost for Members 150 each 455,901 478,696 502,630 527,762 554,150 581,857 610,950Electric & Water 3.00% rental 387,078 406,432 426,754 448,091 470,496 494,021 518,722 Telephone 12,664 13,297 13,962 14,660 15,393 16,163 16,971Sales Commission 20.00% rental 2,580,520 2,709,546 2,845,024 2,987,275 3,136,638 3,293,470 3,458,144Fees 2.50% rental 322,565 338,693 355,628 373,409 392,080 411,684 432,268 Others 3.00% rental 387,078 406,432 426,754 448,091 470,496 494,021 518,722

Total 5,065,262 5,318,525 5,584,451 5,863,674 6,156,857 6,464,700 6,787,9353 RestaurantsDirect Sales Cost 35.00% sales 590,822 620,364 651,382 683,951 718,148 754,056 791,759Salary & Wage 91,956 96,554 101,381 106,450 111,773 117,362 123,230Allowance & Food 20.00% salary 18,391 19,311 20,276 21,290 22,355 23,472 24,646Office Stationery 1.00% sales 16,881 17,725 18,611 19,541 20,519 21,544 22,622Equipments 1.80% sales 30,385 31,904 33,500 35,175 36,933 38,780 40,719Electricity & Water sales 54,763 57,501 60,376 63,395 66,565 69,893 73,387Telephone 25,328 26,594 27,924 29,320 30,786 32,325 33,942Fuel 1.00% sales 16,881 17,725 18,611 19,541 20,519 21,544 22,622Music & Entertainment 1.50% sales 25,321 26,587 27,916 29,312 30,778 32,317 33,933Others 5.00% sales 84,403 88,623 93,055 97,707 102,593 107,722 113,108

Total 955,131 1,002,887 1,053,032 1,105,683 1,160,967 1,219,016 1,279,967Senior Nursing HomeSalary & Wage 368,508 386,934 406,280 426,594 447,924 470,320 493,836Allowance & Food 20.00% salary 73,702 77,387 81,256 85,319 89,585 94,064 98,767Electricity & Water 3.00% rental 80,091 84,095 88,300 92,715 97,351 102,218 107,329Telephone 10,131 10,638 11,170 11,728 12,314 12,930 13,577Sales Commission 10.00% rental 266,969 280,317 294,333 309,050 324,502 340,727 357,764Others 5.00% rental 133,484 140,159 147,167 154,525 162,251 170,364 178,882

Total 932,885 979,529 1,028,505 1,079,931 1,133,927 1,190,624 1,250,155Senior House & CondoSalary & Wage 107,244 112,606 118,236 124,148 130,356 136,873 143,717Allowance & Food 20.00% salary 21,449 22,521 23,647 24,830 26,071 27,375 28,743Electric & Water 1.00% rental 41,781 43,870 46,063 48,366 50,785 53,324 55,990Equipments 1.80% rental 75,205 78,965 82,914 87,059 91,412 95,983 100,782Telephone 10,131 10,638 11,170 11,728 12,314 12,930 13,577Sales Commission 10.00% rental 417,806 438,696 460,631 483,663 507,846 533,238 559,900Others 2.00% rental 83,561 87,739 92,126 96,733 101,569 106,648 111,980

Total 757,177 795,036 834,787 876,527 920,353 966,371 1,014,689SPA

Salary & Wage 49,743 52,230 54,842 57,584 60,463 63,486 66,660Allowance & Food 20.00% salary 9,949 10,446 10,968 11,517 12,093 12,697 13,332Electrict & Water 3.00% sales 27,783 29,172 30,631 32,162 33,770 35,459 37,232Telephone 8,443 8,865 9,308 9,773 10,262 10,775 11,314Equipments 10.00% sales 92,609 97,240 102,102 107,207 112,567 118,196 124,105

Total 188,526 197,953 207,850 218,243 229,155 240,613 252,643


59

Health Care ServicesSalary & Wage 268,110 281,515 295,591 310,370 325,889 342,183 359,293Allowance & Food 20% salary 53,622 56,303 59,118 62,074 65,178 68,437 71,859Electricity & Water 3.00% sales 110,895 116,439 122,261 128,375 134,793 141,533 148,610Telephone 8,443 8,865 9,308 9,773 10,262 10,775 11,314Equipments 10.00% sales 369,649 388,132 407,538 427,915 449,311 471,776 495,365

Total 810,718 851,254 893,817 938,507 985,433 1,034,704 1,086,440OthersSalary & Wage 170,906 179,451 188,423 197,845 207,737 218,124 229,030Allowance & Food 20.00% salary 34,181 35,890 37,685 39,569 41,547 43,625 45,806Direct Sales Cost 35.00% sales 1,402,305 1,472,420 1,546,041 1,623,343 1,704,510 1,789,736 1,879,223Electricity & Water 3.00% sales 120,198 126,207 132,518 139,144 146,101 153,406 161,076Telephone 8,443 8,865 9,308 9,773 10,262 10,775 11,314Equipments 10.00% 400,659 420,691 441,726 463,812 487,003 511,353 536,921

Total 2,136,690 2,243,525 2,355,701 2,473,486 2,597,160 2,727,019 2,863,369MembershipSales Commission 10.00% sales 1,080,000 1,080,000 1,080,000

Total 1,080,000 1,080,000 1,080,000Total Direct Cost 9,789,699 9,145,184 9,602,443 10,082,565 10,586,693 12,196,028 12,751,829

Indirect CostAdministration Salary & Wage 454,303 477,018 500,869 525,913 552,208 579,819 608,810Allowance & Food 20.00% salary 90,861 95,404 100,174 105,183 110,442 115,964 121,762Credit Card Fees 1.50% salary 28,299 29,714 31,199 32,759 34,397 36,117 37,923Electric & Water 31,945 33,542 35,219 36,980 38,829 40,771 42,809Telephone 13,691 14,375 15,094 15,849 16,641 17,473 18,347Office Stationery 22,818 23,959 25,157 26,415 27,735 29,122 30,578Debt Lost 0.50% total sales 218,364 161,242 169,304 177,769 186,657 273,750 283,550Others 1.00% total sales 436,727 322,484 338,608 355,538 373,315 547,501 567,100

Total 1,297,007 1,157,737 1,215,624 1,276,405 1,340,226 1,640,517 1,710,879Sales & MarketingSalary & Wage 73,017 76,668 80,501 84,526 88,753 93,190 97,850Allowance & Food 20.00% salary 14,603 15,334 16,100 16,905 17,751 18,638 19,570Ads & Promotion 325K/year total sales 325,000 325,000 325,000 325,000 325,000 325,000 325,000

Total 412,621 417,002 421,602 426,432 431,503 436,828 442,420Total Indirect Cost 1,709,627 1,574,739 1,637,226 1,702,837 1,771,729 2,077,345 2,153,299

Grand Total 11,499,326 10,719,922 11,239,668 11,785,402 12,358,422 14,273,373 14,905,128

Sales Cost & Expenses


60

Rent & Service Charge Rate

Pro-forma Revenue Price

(USD) Unit Day Month Year

1 Hotel 2 persons 162 105 34,054 1,021,62

2 12,259,459

1 person 211 45 9,486 284,595 3,415,135 (Provides free 2 meals,

laundry with 150 43,541 1,306,21

6 15,674,595

local tour package & health course)

***Total 65% 28,301 849,041 10,188,486

2 Senior House & Condo Senior Villa A 3,243 50 162,162 1,945,946 Senior Villa B 2,027 70 141,892 1,702,703 Senior Villa C 1,486 30 44,595 535,135 Senior Condominium 1,486 50 74,324 891,892 200 422,973 5,075,676 ***Total 65% 274,932 3,299,189

3 Senior Nursing Home Senior Room (1 persons per

unit) 1,757 100 175,676 2,108,108

(3 meals, laundry, nursery care)

Total 100 175,676 2,108,108

4 Restaurant Restaurant (Hotel) 14 100 1,351 40,541 486,486 Restaurant (Building) 14 100 1,351 40,541 486,486 Restaurant (Club House) 10 100 1,000 30,000 360,000 Total 300 3,703 111,081 1,332,973

5 Health Service Thai Clinic (Ayurvedha) 41 20 811 24,324 291,892 Chinese Medicine Clinic 81 50 4,054 121,622 1,459,459 Physical Clinic 41 30 1,216 36,486 437,838 Dental Clinic 135 15 2,027 60,811 729,730

Total 115 8,108 243,243 2,918,9195 SPA 1. Hotel Customers 68 20 1,351 40,541 486,486 2. Walk-In 68 10 680 20,400 244,800 Total 30 2,031 60,941 731,286

6 Other Services Health Care Training Courses 135 200/mo

nth 27,027 324,324

Conference Room (500 persons x 8 day/month)

27 4000 108,108 1,297,297


61

Health Shop 41 50 2,027 60,811 729,730 Club House 14 50 676 20,270 243,243 Coffee Corner 5 200 1,081 32,432 389,189 Spot, Swimming Pool, Games

etc. 10 50 500 15,000 180,000

Total 263,649 3,163,7847 Time Sharing Member 10,000 3 30,000 900,000 10,800,000 Total 3 30,000 900,000 10,800,000 *** 65% of Units for sale , 30% for time sharing members and 5% for non performance units.

Rental & Services Charge Rate


62

Pro-forma Cash Flow The projected profit and loss for KASALONG HOME is shown on the following table.

This aggressive projection will help our efforts to keep total cost of sales low while increasing gross margin. We will also have very low marketing costs, due to the public exposure to the units, and good word of mouth around the industrial community area.

0

20,000,000

40,000,000

60,000,000

80,000,000

100,000,000

120,000,000

140,000,000

160,000,000

US$

Year

Pro-forma Cash Flow

Net Cash Flow 907,70 7,600,5 8,668,6 4,823,8 6,019,0 6,529,1 6,939,2 14,346, 15,790, 8,648,4 9,335,2 10,070, 9,885,4 20,068, 22,992,

Cash Balance 907,70 8,508,2 17,176, 22,000, 28,019, 34,548, 41,488, 55,835, 71,625, 80,273, 89,609, 99,680, 109,56 129,63 152,62

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Pro-forma Cash Flow (15years)


63

1 2 3 4 5 6 7 8Starting Balance 907,700 8,508,212 17,176,860 22,000,673 28,019,704 34,548,814 41,488,054Cash Flow In

Capital 540,540Loan 31,863,662Net Profit -2,131,104 7,102,249 8,170,384 4,325,550 6,520,767 7,030,847 7,440,976 15,848,686PlusDepreciation 1,498,264 1,498,264 1,498,264 1,498,264 1,498,264 1,498,264 1,498,264 1,498,264

Total Cash Flow In 31,771,362 8,600,512 9,668,647 5,823,813 8,019,031 8,529,111 8,939,239 17,346,950Cash Flow Out

Inventory 300,000Long Terms Asset 28,242,041Loan Repayment 1,000,000 1,000,000 1,000,000 2,000,000 2,000,000 2,000,000 3,000,000Other 2,321,622

Total Cash Flow Out 30,863,662 1,000,000 1,000,000 1,000,000 2,000,000 2,000,000 2,000,000 3,000,000Net Cash Flow 907,700 7,600,512 8,668,647 4,823,813 6,019,031 6,529,111 6,939,239 14,346,950Cash Balance 907,700 8,508,212 17,176,860 22,000,673 28,019,704 34,548,814 41,488,054 55,835,004

9 10 11 12 13 14 15Starting Balance 55,835,004 71,625,473 80,273,968 89,609,240 99,680,092 109,565,495 129,633,830Cash Flow In

CapitalLoanNet Profit 17,292,206 10,150,231 10,899,596 11,635,177 11,449,727 21,632,659 23,420,195PlusDepreciation 1,498,264 1,498,264 1,435,676 1,435,676 1,435,676 1,435,676 1,435,676

Total Cash Flow In 18,790,469 11,648,495 12,335,272 13,070,853 12,885,403 23,068,334 24,855,871Cash Flow Out

InventoryLong Terms AssetLoan Repayment 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 1,863,662Other

Total Cash Flow Out 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 3,000,000 1,863,662Net Cash Flow 15,790,469 8,648,495 9,335,272 10,070,853 9,885,403 20,068,334 22,992,208Cash Balance 71,625,473 80,273,968 89,609,240 99,680,092 109,565,495 129,633,830 152,626,038

Pro-forma Cash Flow


64

Pro-forma Profits & Losses We expect income to hit $6 million for the 5th year of the business plan and $14 million in 10th year and 20 million in 15th year.

Year 1 2 3 4 5 6 7 8Revenue

Guest Hotel 0 4,075,395 5,883,851 7,862,964 10,025,280 10,526,544 11,703,040 12,288,192Senior House & Condo 0 1,319,676 1,905,282 2,546,149 3,246,340 3,408,657 3,789,625 3,979,106Senior Nursing Home 0 843,243 1,217,432 1,626,932 2,074,339 2,178,056 2,421,486 2,542,560Health Care Services 0 1,167,568 1,685,676 2,252,676 2,872,161 3,015,770 3,352,826 3,520,467

SPA 0 292,515 422,318 564,370 719,572 755,551 839,995 881,994

3 Restaurants 0 533,189 769,792 1,028,722 1,311,620 1,377,201 1,531,124 1,607,680Membership Fee 0 10,800,000 10,800,000 0 0 0 0 12,960,000Other Facilities 1,265,514 1,827,085 2,441,650 3,113,104 3,268,759 3,634,091 3,815,796

Misc 203,770 294,193 393,148 501,264 526,327 585,152 614,410

Total Revenue 0 20,500,868 24,805,628 18,716,612 23,863,681 25,056,865 27,857,338 42,210,205Direct Cost

Guest Hotel 1,771,765 2,590,971 3,255,482 3,979,967 4,178,965 4,594,342 4,824,059Senior House & Condo 293,971 385,574 485,602 594,669 624,402 686,782 721,121Senior Nursing Home 473,254 556,682 647,269 745,523 782,799 846,154 888,462Health Care Services 386,432 465,519 551,548 645,016 677,267 735,345 772,112SPA 86,449 105,744 126,753 149,598 157,078 170,999 179,5493 Restaurants (25%) 376,875 490,823 615,224 750,838 788,380 866,332 909,648Membership 0 1,080,000 1,080,000 1,296,000 1,296,000Other Facilities 759,198 1,036,340 1,339,298 1,669,961 1,753,459 1,938,041 2,034,943Misc

Total Directed Cost 0 5,227,944 6,711,653 7,021,176 8,535,572 8,962,351 11,133,995 11,625,894Gross Profits Before Operating 0 15,272,924 18,093,975 11,695,437 15,328,109 16,094,514 16,723,343 30,584,311

Indirect CostAdministation 254,570 763,711 851,092 783,707 886,061 930,364 1,000,097 1,244,502Sales & Marketing 345,757 387,270 390,384 393,653 397,086 400,690 404,474 408,448

Total Operating Expenses 600,327 1,150,981 1,241,476 1,177,360 1,283,147 1,331,054 1,404,571 1,652,950Operating Profit (Loss) Before Fi -600,327 14,121,943 16,852,500 10,518,076 14,044,962 14,763,460 15,318,772 28,931,361

Fixed CostHousehold Tax & Insurance 32,514 1,797,756 2,139,076 1,347,273 1,788,134 1,877,946 1,947,360 3,648,934Depreciation 1,498,264 1,498,264 1,498,264 1,498,264 1,498,264 1,498,264 1,498,264 1,498,264Long Term Loan Interest 1,593,183 1,543,183 1,493,183 1,443,183 1,343,183 1,243,183 1,143,183

Total Fixed Expenses 1,530,777 4,889,203 5,180,523 4,338,720 4,729,580 4,719,393 4,688,807 6,290,380Net Profit (Loss) Before Taxes -2,131,104 9,232,740 11,671,977 6,179,357 9,315,382 10,044,067 10,629,965 22,640,980Corporated Taxes 2,130,491 3,501,593 1,853,807 2,794,614 3,013,220 3,188,990 6,792,294Net Profit (Loss) -2,131,104 7,102,249 8,170,384 4,325,550 6,520,767 7,030,847 7,440,976 15,848,686


65

Year 9 10 11 12 13 14 15 TotalRevenue

Guest Hotel 12,902,601 13,547,731 14,225,118 14,936,374 15,683,192 16,467,352 17,290,720 167,418,353Senior House & Condo 4,178,061 4,386,965 4,606,313 4,836,628 5,078,460 5,332,383 5,599,002 54,212,647Senior Nursing Home 2,669,688 2,803,172 2,943,331 3,090,497 3,245,022 3,407,273 3,577,637 34,640,669Health Care Services 3,696,491 3,881,315 4,075,381 4,279,150 4,493,108 4,717,763 4,953,651 47,964,003SPA 926,094 972,399 1,021,019 1,072,070 1,125,673 1,181,957 1,241,055 12,016,5823 Restaurants 1,688,064 1,772,467 1,861,091 1,954,145 2,051,853 2,154,445 2,262,167 21,903,561Membership Fee 12,960,000 0 0 0 0 15,552,000 15,552,000 78,624,000Other Facilities 4,006,585 4,206,915 4,417,260 4,638,123 4,870,030 5,113,531 5,369,208 51,987,650Misc 645,130 677,387 711,256 746,819 784,160 823,368 864,536 8,370,918

Total Revenue 43,672,715 32,248,351 33,860,768 35,553,807 37,331,497 54,750,072 56,709,976 477,138,384Direct Cost

Guest Hotel 5,065,262 5,318,525 5,584,451 5,863,674 6,156,857 6,464,700 6,787,935 66,436,955Senior House & Condo 757,177 795,036 834,787 876,527 920,353 966,371 1,014,689 9,957,062Senior Nursing Home 932,885 979,529 1,028,505 1,079,931 1,133,927 1,190,624 1,250,155 12,062,444Health Care Services 810,718 851,254 893,817 938,507 985,433 1,034,704 1,086,440 10,447,681SPA 188,526 197,953 207,850 218,243 229,155 240,613 252,643 2,424,7053 Restaurants (25%) 955,131 1,002,887 1,053,032 1,105,683 1,160,967 1,219,016 1,279,967 12,197,928Membership 1,555,200 1,555,200 7,862,400Other Facilities 2,136,690 2,243,525 2,355,701 2,473,486 2,597,160 2,727,019 2,863,369 27,928,191Misc

Total Directed Cost 10,846,389 11,388,708 11,958,144 12,556,051 14,739,054 15,398,246 14,535,199 150,640,375Gross Profits Before Operating 32,826,326 20,859,642 21,902,625 22,997,756 22,592,444 39,351,826 42,174,777 326,498,008

Indirect CostAdministation 1,297,007 1,157,737 1,215,624 1,276,405 1,340,226 1,640,517 1,710,879 16,097,929Sales & Marketing 412,621 417,002 421,602 426,432 431,503 436,828 442,420 5,770,412

Total Operating Expenses 1,709,627 1,574,739 1,637,226 1,702,837 1,771,729 2,077,345 2,153,299 21,868,341Operating Profit (Loss) Before Fi 31,116,699 19,284,904 20,265,399 21,294,919 20,820,715 37,274,480 40,021,478 304,629,667

Fixed CostHousehold Tax & Insurance 3,922,101 2,443,126 2,565,688 2,694,378 2,635,103 4,691,824 5,035,198 38,566,411Depreciation 1,498,264 1,498,264 1,435,676 1,435,676 1,435,676 1,435,676 1,435,676Long Term Loan Interest 993,183 843,183 693,183 543,183 393,183 243,183 93,183 13,604,564

Total Fixed Expenses 6,413,547 4,784,573 4,694,547 4,673,237 4,463,962 6,370,682 6,564,057 74,331,988Net Profit (Loss) Before Taxes 24,703,151 14,500,331 15,570,852 16,621,682 16,356,753 30,903,798 33,457,421 229,697,352Corporated Taxes 7,410,945 4,350,099 4,671,256 4,986,504 4,907,026 9,271,139 10,037,226 68,909,206Net Profit (Loss) 17,292,206 10,150,231 10,899,596 11,635,177 11,449,727 21,632,659 23,420,195 160,788,146

Pro-forma Profits & Losses


66

Pro-forma Balance Sheet The Projected Balance Sheet is quite solid. We do not project any real trouble meeting our debt obligations - as long as we can achieve our specific objectives The highlights of the balance sheets are a cash position of $ 152,626,038 and a net worth of $159,007,065 at the end of 15th year with debt free.

Start B/L 1 2 3 4 5 6 7 8ASSETS

Short Term Assets

Cash and Bank Deposit 1,540,541 907,700 8,508,212 17,176,860 22,000,673 28,019,704 34,548,814 41,488,054 55,835,004

Inventory 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000 300,000

Total Short Term Assets 1,840,541 1,207,700 8,808,212 17,476,860 22,300,673 28,319,704 34,848,814 41,788,054 56,135,004

Long Term Assets

Land 6,081,027 6,081,027 6,081,027 6,081,027 6,081,027 6,081,027 6,081,027 6,081,027 6,081,027

Building & Infrastructure 16,256,757 16,256,757 16,256,757 16,256,757 16,256,757 16,256,757 16,256,757 16,256,757 16,256,757

Tools, Equipmens and Furniture 5,278,378 5,278,378 5,278,378 5,278,378 5,278,378 5,278,378 5,278,378 5,278,378 5,278,378

Vehicle 625,878 625,878 625,878 625,878 625,878 625,878 625,878 625,878 625,878

Sub-Total Long Term Assets 28,242,041 28,242,041 28,242,041 28,242,041 28,242,041 28,242,041 28,242,041 28,242,041 28,242,041

Accummulated Depreciation 1,498,264 2,996,527 4,494,791 5,993,054 7,491,318 8,989,581 10,487,845 11,986,108

Total Long term Assets 28,242,041 26,743,777 25,245,514 23,747,250 22,248,986 20,750,723 19,252,459 17,754,196 16,255,932

Total Assets 30,082,581 27,951,477 34,053,726 41,224,110 44,549,659 49,070,427 54,101,274 59,542,250 72,390,936

DEBT & EQUITY

Short Term Liabilities

Accounts Payable

Sub-Total Short Term Liabilities

Long Term Liabilities

Sub-Total Long Term Debt 31,863,662 31,863,662 30,863,662 29,863,662 28,863,662 26,863,662 24,863,662 22,863,662 19,863,662

Total Debt 31,863,662 31,863,662 30,863,662 29,863,662 28,863,662 26,863,662 24,863,662 22,863,662 19,863,662

Equity

In Paid Capital 594,594 594,594 594,594 594,594 594,594 594,594 594,594 594,594 594,594

SubTotal Equity -1,781,081 -3,912,185 3,190,064 11,360,447 15,685,997 22,206,764 29,237,611 36,678,587 52,527,274

Total Debt & Equity 30,082,581 27,951,477 34,053,726 41,224,110 44,549,659 49,070,427 54,101,274 56,542,250 69,390,936

Net Worth -1,781,081 -3,912,185 3,190,064 11,360,447 15,685,997 22,206,764 29,237,611 36,678,587 52,527,274


67

9 10 11 12 13 14 15ASSETS

Short Term Assets

Cash and Bank Deposit 71,625,473 80,273,968 89,609,240 99,680,092 109,565,495 129,633,830 152,626,038

Inventory 300,000 300,000 300,000 300,000 300,000 300,000 300,000

Total Short Term Assets 71,925,473 80,573,968 89,909,240 99,980,092 109,865,495 129,933,830 152,926,038

Long Term Assets

Land 6,081,027 6,081,027 6,081,027 6,081,027 6,081,027 6,081,027 6,081,027

Building & Infrastructure 16,256,757 16,256,757 16,256,757 16,256,757 16,256,757 16,256,757 16,256,757

Tools, Equipmens and Furniture 5,278,378 5,278,378 5,278,378 5,278,378 5,278,378 5,278,378 5,278,378

Vehicle 625,878 625,878 625,878 625,878 625,878 625,878 625,878

Sub-Total Long Term Assets 28,242,041 28,242,041 28,242,041 28,242,041 28,242,041 28,242,041 28,242,041

Accummulated Depreciation 13,484,372 14,982,635 16,418,311 17,853,986 19,289,662 20,725,338 22,161,014

Total Long term Assets 14,757,669 13,259,405 11,823,730 10,388,054 8,952,378 7,516,703 6,081,027

Total Assets 86,683,142 93,833,373 101,732,969 110,368,147 118,817,874 137,450,532 159,007,065

DEBT & EQUITY

Short Term Liabilities

Accounts Payable

Sub-Total Short Term Liabilities

Long Term Liabilities

Sub-Total Long Term Debt 16,863,662 13,863,662 10,863,662 7,863,662 4,863,662 1,863,662 0

Total Debt 16,863,662 13,863,662 10,863,662 7,863,662 4,863,662 1,863,662 0

Equity

In Paid Capital 594,594 594,594 594,594 594,594 594,594 594,594 594,594

SubTotal Equity 69,819,479 79,969,711 90,869,307 102,504,484 113,954,211 135,586,870 159,007,065

Total Debt & Equity 86,683,142 93,833,373 101,732,969 110,368,147 118,817,874 137,450,532 159,007,065

Net Worth 69,819,479 79,969,711 90,869,307 102,504,484 113,954,211 135,586,870 159,007,065

Pro-forma Balance Sheet


68

Ratios Analysis

The sale cost (directed cost) is approximately 32% of the Sale Value while the Operating Expenses (indirect cost) are 5% is sound good. Gross margins of 74% are excellent, Operating Profit Margin 71% and Net Profit Margin 41% are pretty good. All ratios are in good shape for traditional borrowing to fund further growth.

Year 1 2 3 4 5 6 7 8Prifitibility Ratios

Gross Margin 0.74 0.73 0.62 0.64 0.64 0.60 0.72

Operating Profit Margin 0.69 0.68 0.56 0.59 0.59 0.55 0.69

Net Profit Margin 0.35 0.33 0.23 0.27 0.28 0.27 0.38

Return On Assets ( ROA) 0.21 0.20 0.10 0.13 0.13 0.12 0.22

Return On Equity (ROE) -1.82 2.56 0.38 0.42 0.32 0.25 0.43

Expenses Ratios

Direct Cost to Total Revenue Ratio 0.26 0.27 0.38 0.36 0.36 0.40 0.28

Indirect Cost to Total Revenue Ratio 0.06 0.05 0.06 0.05 0.05 0.05 0.04

Fixed Cost to Total Revenue Ratio 0.24 0.21 0.23 0.20 0.19 0.17 0.15

Debt Ratios

Debt to Equity Ratio 9.67 2.63 1.84 1.21 0.85 0.62 0.38

Debt Ratio 0.91 0.72 0.65 0.55 0.46 0.38 0.27

Liquidity Ratios

Interest Coverage Ratio 8.86 10.92 7.04 9.73 10.99 12.32 25.31

Investment Ratos

Internal Rate of Return (IRR) -0.17 -0.07 0.05 0.05 0.11

Net Present Value (NPV) - 5% Discounted Rate

Pay Back Period At the end of 5th year.


69

Year 9 10 11 12 13 14 15Prifitibility Ratios

Gross Margin 0.75 0.65 0.65 0.65 0.61 0.72 0.74

Operating Profit Margin 0.71 0.60 0.60 0.60 0.56 0.68 0.71

Net Profit Margin 0.40 0.31 0.32 0.33 0.31 0.40 0.41

Return On Assets ( ROA) 0.20 0.11 0.11 0.11 0.10 0.16 0.15

Return On Equity (ROE) 0.33 0.15 0.14 0.13 0.11 0.19 0.17

Expenses Ratios

Direct Cost to Total Revenue Ratio 0.25 0.35 0.35 0.35 0.39 0.28 0.26

Indirect Cost to Total Revenue Ratio 0.04 0.05 0.05 0.05 0.05 0.04 0.04

Fixed Cost to Total Revenue Ratio 0.15 0.15 0.14 0.13 0.12 0.12 0.12

Debt Ratios

Debt to Equity Ratio 0.24 0.17 0.12 0.08 0.04 0.01 0.00

Debt Ratio 0.19 0.15 0.11 0.07 0.04 0.01 0.00

Liquidity Ratios

Interest Coverage Ratio 31.33 22.87 29.24 39.20 52.95 153.28 429.49

Investment Ratos

Internal Rate of Return (IRR) 0.15 0.16 0.18 0.18 0.19 0.20 0.21

Net Present Value (NPV) - 5% Discounted Rate 73,658,902

Pay Back Period Year Incomes IRR NPV

-30,863,662 Rate 5%1 -2,131,1042 7,102,249 4,294,2623 8,170,384 10,811,5684 4,325,550 -17% 13,685,9135 6,520,767 -7% 1,664,3466 7,030,847 0% 22,044,4067 7,440,976 5% 26,031,0188 15,848,686 11% 35,007,6509 17,292,206 15% 43,956,533

10 10,150,231 16% 47,797,99511 10,899,596 18% 51,591,20312 11,635,177 18% 55,304,86213 11,449,727 19% 58,454,18714 21,632,659 20% 66,076,33315 23,420,195 21% 73,658,902

Total 160,788,146

Financial Analysis Ratios


70

Financial Benchmark

-20,000,000

0

20,000,000

40,000,000

60,000,000

80,000,000

100,000,000

120,000,000

140,000,000

160,000,000

US$

Year

Financial Benchmark

Capital 32,40 32,40 32,40 32,40 32,40 32,40 32,40 32,40 32,40 32,40 32,40 32,40 32,40 32,40 32,40

Sales Value 0 20,50 24,80 18,71 23,86 25,05 27,85 42,21 43,67 32,24 33,86 35,55 37,33 54,75 56,70

Net Incomes -2,13 7,102 8,170 4,325 6,520 7,030 7,440 15,84 17,29 10,15 10,89 11,63 11,44 21,63 23,42

Outstanding Loan 31,86 30,86 29,86 28,86 26,86 24,86 22,86 19,86 16,86 13,86 10,86 7,863 4,863 1,863 0

Cash Balance 907,7 8,508 17,17 22,00 28,01 34,54 41,48 55,83 71,62 80,27 89,60 99,68 109,5 129,6 152,6

Equity -1,78 3,190 11,36 15,68 22,20 29,23 36,67 52,52 69,81 79,96 90,86 102,5 113,9 135,5 159,0

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Financial Benchmark

kaslong retirement community project

Documents