operations for coaches (investment in new equipment)

The influence of operational costs in the daily operations of coach companies

Explanation of cost structures

Differences between fixed and variabel costs

Influences on cost development

How to take a sound decision to determine a realistic price

Be as efficient as possible by maximizing revenues

Attributes to lower the costs and optimize profits

The right coach for different clients

Purchase, warrantee, residual value and lifetime

Guidance through the investment pad of a coach by P. G.

Explanation of cost structuresTwo different types of costs:1. Variabel costs increases during heavy usage of the equipement, it influences the total costs on basis of the total operations

2. Fixed costs remains almost the same, less influenceble, it remains the same most of the time

Variabel costs exist out of the following components:Fuel – Repair and Maintenance – Tires – Interest – Telephone – Toll – Empty rides of course it can be more then mentionedFixed costs exists out of the following components:Employees – Depriciation – Overhead – Insurance – Taxes – Salaries – Pensions – Social Security are a few examples of fixed costsBoth of the cost structures is the basic element to start with the total cost price of your service towards your clients. The ultimo is either the decision of the tour operator how to calculate the cost specification of a certain vehicle towards his final client. Because this depend of the driven miles, spec of the coach and the crowd that will be transported.Primarilly there is a huge difference between national and international passenger transport as well as between daily trips and long distance travel for a couple of days or even weeks. Therefore some adaptation is needed.


Influences on cost developmentVariables that influences the development of the life cycle costs:

Not limited to a few but quite a lot of variables influences the total costs of a vehicle. In the market they name this phenomenon Total Cost of Ownership. It means that all seperate costs in the perspective of the bigger sum are the total costs for every operator.

At this moment we could speak of a good environment which are good fore coach enterprises. The costs of Petrol e.g. Gasoline aren ’t that high. Due to the lower demand of fossil fuel, the big Petrol Companies and the Oil winners as well can not ask that high prices. In 2010 and 2011 the Oil prices where at the highest point in five years and remained stable around $ 100 per barrel and then the prices decreased very dramatically in just one year.Next to that the Financial Markets who provide money to loan are not that motivated to finance highly capitalized products unless the enterprise is financial solid enough, otherwise the OEM can provide a loan against a very competitive interest rate.Based on the current interest rate of the Capital Markets it is seemingly attractive to close a deal with a loan from a bank or a financing provided by the seller. In that case a loan offerred by the supplier has more advantages because they can offer it against lower rates The gap in interest rates before the crisis compared with the current situation is very huge. Currently the deficit is almost 5 % in the advantage of the buyer. So sharp interest rates on the worldwide Capital market are in the advantage of the operators that are invest in new vehicles. All based on the situation as it is now.


Influences on cost development 2 Variables that influence the development of the lifecycle costs: Description Amount Fixed costs

1Depreciation € 24.500,00

2Interest € 1.372,00 3Insurance (vehicle, passenger and driver) € 5.250,00 4Taxes € 788,00

5Driver (labour costs) € 33.300,00

6Periodical (maintenance) € 575,33 7Overhead (administration) € 2.250,00 8Costs of breakdown € 0,00 9Extra labour costs (overtime and pensions) € 9.281,25 10Pensions € 5.934,06 11 € 83.250,64

Variable costs

1Fuel (gasoline) € 16.524,00 2Telephone of driver € 180,00 3Consumption € 1.800,00 4Ad-Blue € 765,00 5Variable maintenance € 1.150,00 6Maut surcharge Tol costs € 0,00

7Empty rides € 6.750,00

8Tank hours € 283,05

9Tyres € 3.069,00

10Maintenance (repair and parts replacement) € 1.500,00 11 12 € 32.021,05

0 2000 4000 6000 8000 10000 12000 14000 16000 18000

€ 16,524.00

€ 180.00

€ 1,800.00

€ 765.00

€ 1,150.00

€ 0.00

€ 6,750.00

€ 283.05

€ 3,069.00€ 1,500.00

Chart Variable cost

0 5000 10000 15000 20000 25000 30000 35000

€ 24,500.00€ 1,372.00

€ 5,250.00€ 788.00

€ 33,300.00€ 575.33

€ 2,250.00€ 0.00

€ 9,281.25€ 5,934.06

Chart Fixed cost


An sound investment plan Either you are going to buy or lease your coach. It is very important what effect it has on your daily operations and what kind of coach you are looking for to expand or replace a vehicle in your fleet.

1. The brand of the product, depends on earlier experience, relationship and trust2. Technical abilities, seat lay-out, configuration, axles, integral or chassis and type of engine3. Financials Financial lease or Operational lease, contacts with your bank, brand, credability and residual value

Those 3 components are decisive for at least 70 % of the DMU, the other 30 % is based on the relationship with the supplier.

What should an investment plan consist of: Solid financial plan Strategy of the selling process, there is a lot to choose from and the orientational phase Numbers, make sure that your budget fits the plan Details, decision is made, the quotation phase has ended and now it is time to choose the right product that fits to your purposes The final phase is there, the products are choosen and the negotiation phase has started, up to the seller to motivate Decision made now develop an individual plan how to earn your investment back in a given time


An sound investment plan Example of some thorough calculations for the enterprise: The orientation phase what do you need An overview of the basic elements to conduct an good investment plan


ANNUAL MILEAGE

70.000

RESIDALE VALUE COACH

37,00%

DURATION

60

INTEREST

0,035

Driver data

Work days each year 225

Salary driver per hour € 18,50

Pension premium (17,82 %) € 3,30Allowance per hr (35%) (275 overtime hours) € 9.281Overhead (divers) 5% € 2.250Work hours (each week 40) 225 ds/years 1.800 Mile age (KM) and fuel cost per liter Kilometers each year 70.000 Diesel price LTRS € 1,08 Fuel usage Usage of petrol each year 11900Number of fuel stops 60 Ad blue liter price 0,08 € 47,60 Ad blue 5 % o/t gasoline 595 Tyres Tyres - setprice (€ 2790) € 2.790,00 Residale Value 10 % o/t new price € 279,00 Cleaning Cleaning (20x each year á € 75) € 1.500,00 Lifetime of the vehicle and Interest Lifetime coach (economic) 5 Redemption and Interest (monthly) € 143Residale Value in % 0,37 Divers additional costs Vehicle Insurance on yearly basis € 5.250,00Road TaxRoad Tax (from 9851-11150 kg) #N/ARoad Tax (from 11151-12850 kg) #N/ARoad Tax (from 11151-12850 kg) 12951-13050 € 788,00Road Tax (from 12851-14850 kg) #N/ARoad Tax (from 14851-15050 kg) #N/A

Eurovignet per km

Tank Content in Liters 200 Consumption per 100 km 17 Average km on an full fuel tank 1.176,47

Tank on 1/2 Tires price each (€ 465) € 2.790,00

Change every 75,000 km 0,93

Tank hours +/- 10 minutes each time 11,90 Costs of tank at fuel station € 220,15

Costs of tire change € 2.325,00Phone for driver (€ 15 each month) € 180,00Consumptions, wait time, Hotels (€ 150 each month) € 1.800,00Redemption vehicle incl. (each month incl rates) € 1.715,00Variable maintenance Each year € 1.150,00Empty rides Each year € 5.250,00Damage on coach (bumpers, glass, mirrors, etc.) Each year € 1.500,00

PURCHASE PRICE

€ 245.000,00

An sound investment plan (2) Example of some thorough calculations for the enterprise: The orientation phase what do you need

In the table above there is an overview of the maintenance cost of different vehicle types, mainly based on that with DAF-engines. Prior to the mentioned prices I have to announce that this are prices which are based on average maintenace costs which not includes parts replacement. In each year I calculated an 5 % margin because of increasing prices and more maintenance issues if an vehicle becomes older.

It is a rough estimation but it closely matches the daily operative costs of logistical providers in the passenger transport by coach.


Expected expences for Maintenance Tariff Total 1 year Total 2 year Total 3 year Total 4 year Total 5 year Total 6 year Total 7 year Total 8 year Total 9 year Total 10 yearSign out Tachograph € 93,00 € 93,00 € 97,88 € 103,02 € 108,43 € 114,12 € 120,11 € 126,42 € 133,06 € 140,04 € 147,39

Sign out and additional fees € 17,00 € 17,00 € 17,89 € 18,83 € 19,82 € 20,86 € 21,96 € 23,11 € 24,32 € 25,60 € 26,94

MOT – 2 axle vehicle € 105,00 € 105,00 € 110,51 € 116,31 € 122,42 € 128,85 € 135,61 € 142,73 € 150,23 € 158,11 € 166,41

MOT – 3 axle vehicle € 120,00 € 120,00 € 126,30 € 132,93 € 139,91 € 147,25 € 154,99 € 163,12 € 171,69 € 180,70 € 190,19

Soot emissions measure € 20,00 € 6,00 € 6,32 € 6,65 € 7,00 € 7,36 € 7,75 € 8,16 € 8,58 € 9,03 € 9,51

Y1 routine maintenance DAF 2-axle € 120,00 € 46,67 € 49,12 € 51,70 € 54,41 € 57,27 € 60,27 € 63,44 € 66,77 € 70,27 € 73,96

Y1 routine maintenance DAF 3-axle € 136,00 € 52,89 € 55,67 € 58,59 € 61,66 € 64,90 € 68,31 € 71,89 € 75,67 € 79,64 € 83,82

Y2- routine maintenance DAF 2-axle € 194,00 € 25,15 € 26,47 € 27,86 € 29,32 € 30,86 € 32,48 € 34,19 € 35,98 € 37,87 € 39,86

Y2- routine maintenance DAF 3-axle € 210,00 € 27,22 € 28,65 € 30,16 € 31,74 € 33,41 € 35,16 € 37,00 € 38,95 € 40,99 € 43,14

T-maintenance/ P-maintenance 2-axle € 106,00 € 53,00 € 55,78 € 58,71 € 61,79 € 65,04 € 68,45 € 72,05 € 75,83 € 79,81 € 84,00

T-maintenance / P-maintenance 3-axle € 152,00 € 76,00 € 79,99 € 84,19 € 88,61 € 93,26 € 98,16 € 103,31 € 108,73 € 114,44 € 120,45

Yearly control of the alarm € 35,00 € 35,00 € 36,84 € 38,77 € 40,81 € 42,95 € 45,20 € 47,58 € 50,08 € 52,70 € 55,47

Break tests on platform € 42,00 € 42,00 € 44,21 € 46,53 € 48,97 € 51,54 € 54,25 € 57,09 € 60,09 € 63,24 € 66,57

X-maintenance 2-axle € 155,00 € 120,56 € 126,88 € 133,55 € 140,56 € 147,94 € 155,70 € 163,88 € 172,48 € 181,54 € 191,07

X-maintenance 3-axle € 172,00 € 133,78 € 140,80 € 148,19 € 155,97 € 164,16 € 172,78 € 181,85 € 191,40 € 201,45 € 212,02

Airco check expanded € 135,00 € 135,00 € 142,09 € 149,55 € 157,40 € 165,66 € 174,36 € 183,51 € 193,15 € 203,29 € 213,96

Depriciation methodes of the vehicles There are roughly two methods to depriciate the value of the purchased vehicle:


Lineair depriciationFORMULE

A-R/n/Ax100%

{1-(R/A)^?*100}

Boekvalue begin Dep. Year 1 BV aft. 1 year Dep. Year 2 BV aft. 2 year Dep. Year 3BV aft. 3 year Dep. Year 4

BV aft. 4 year Dep. Year 5



BV aft. year 7 Dep. Year 8

BV aft. 8 year

Dep. Year 9 BV aft. 9 year

Residale V a 10Year

€ 154.350,00 € 57.109,50 € 97.240,50 € 35.978,99 € 61.261,52 € 22.666,76 € 38.594,75 € 14.280,06 € 24.314,70 € 8.996,44 € 15.318,26 € 5.667,76 € 9.650,50 € 3.570,69 € 6.079,82 € 2.249,53 € 3.830,28€

1.417,21 € 2.413,08 -€ 995,87

Control/Total € 57.109,50 € 97.240,50 € 35.978,99 € 61.261,52 € 22.666,76 € 38.594,75 € 14.280,06 € 24.314,70 € 8.996,44 € 15.318,26 € 5.667,76 € 9.650,50 € 3.570,69 € 6.079,82 € 2.249,53 € 3.830,28€

1.417,21 € 2.413,08 -€ 995,87

Bookvalue depriciation

Bookvalue begin Dep. Year 1 BV aft. 1 year Dep. Year 2 BV aft. 2 year Dep. Year 3BV aft. 3 year Dep. Year 4




BV aft. year 7 Dep. Year 8

BV aft. 8 year

Dep. Year 9 BV aft. 9 year

Residale V a 10Year

€ 154.350,00 € 43.218,00 € 111.132,00 € 31.116,96 € 80.015,04 € 22.404,21 € 57.610,83 € 16.131,03 € 41.479,80 € 11.614,34 € 29.865,45 € 8.362,33 € 21.503,13 € 6.020,88 € 15.482,25 € 4.335,03 € 11.147,22€

3.121,22 € 8.026,00 -€ 4.904,78

Control/Total € 43.218,00 € 111.132,00 € 31.116,96 € 80.015,04 € 22.404,21 € 57.610,83 € 16.131,03 € 41.479,80 € 11.614,34 € 29.865,45 € 8.362,33 € 21.503,13 € 6.020,88 € 15.482,25 € 4.335,03 € 11.147,22€

3.121,22 € 8.026,00 -€ 4.904,78

Afs. Jaar

1

BW na 1 jaar

Afs. Jaar

2

BW na 2 jaar

Afs. Jaar

3

Bw na 3 jaar

Afs. Jaar

4

BW na 4 jaar

Afs. Jaar

5

BW na 5 jaar

Afs. Jaar

6

BW na 6 jaar

Afs. Jaar

7

BW na 7 jaar

€ 0.00€ 20,000.00€ 40,000.00€ 60,000.00€ 80,000.00

€ 100,000.00

Depriciation of the new price-residale value

DEPRICIATION AND BOOKVALUE

AMO

UNT

in e

uro'

s

Afs. Jaar

1

BW na 1 jaar

Afs. Jaar

2

BW na 2 jaar

Afs. Jaar

3

Bw na 3 jaar

Afs. Jaar

4

BW na 4 jaar

Afs. Jaar

5

BW na 5 jaar

Afs. Jaar

6

BW na 6 jaar

Afs. Jaar

7

BW na 7 jaar

€ 0.00€ 20,000.00€ 40,000.00€ 60,000.00€ 80,000.00

€ 100,000.00€ 120,000.00

Depriciation of the new price – book value

DEPRICIATION AND BOOKVALUE

AMO

UNT

in e

uro'

s

Different types of costs which influences the fair price

The complementary costs exist out of the depriciation costs combined with the interest. Depending on the type of company an percentage to cover the risk of the costs. They are mainly exist out of maintenance costs. After the depriciation of an vehicle decreases maintenance costs rises. It is wise to calculate this type of costs in to the fair price wether the coach is used for national or international purposes.


Complementary costsYear Depriciation costs Interest percentage Interest costs (AIP) Complementary costs Total costs Production in KM KM-costsYear 1 € 57.109,50 0,05 € 2.855,48 € 5.770,37 € 65.735,35 0 € 0,00Year 2 € 35.978,99 0,05 € 1.798,95 € 5.797,69 € 43.575,62 0 € 0,00Year 3 € 22.666,76 0,05 € 1.133,34 € 5.826,44 € 29.626,54 0 € 0,00Year 4 € 14.280,06 0,05 € 714,00 € 5.965,14 € 20.959,20 0 € 0,00Year 5 € 8.996,44 0,05 € 449,82 € 5.888,56 € 15.334,82 0 € 0,00Year 6 € 5.667,76 0,05 € 283,39 € 5.922,08 € 11.873,23 0 € 0,00Year 7 € 3.570,69 0,05 € 178,53 € 5.975,34 € 9.724,56 0 € 0,00Year 8 € 2.249,53 0,05 € 112,48 € 5.994,50 € 8.356,51 0 € 0,00Year 9 € 1.417,21 0,05 € 70,86 € 6.086,30 € 7.574,36 0 € 0,00Year 10 € 0,00 0,05 € 0,00 € 6.074,73 € 6.074,73 € 0,00

Complementary costsYear Depriciation costs Interest percentage Interest costs (AIP) Complementary costs Total costs Production in KM KM-costsYear 1 € 43.218,00 0,05 € 2.160,90 € 5.770,37 € 51.149,27 0 € 0,00Year 2 € 31.116,96 0,05 € 1.555,85 € 5.797,69 € 38.470,50 0 € 0,00Year 3 € 22.404,21 0,05 € 1.120,21 € 5.826,44 € 29.350,87 0 € 0,00Year 4 € 16.131,03 0,05 € 806,55 € 5.965,14 € 22.902,72 0 € 0,00Year 5 € 11.614,34 0,05 € 580,72 € 5.888,56 € 18.083,62 0 € 0,00Year 6 € 8.362,33 0,01 € 83,62 € 5.922,08 € 14.368,03 0 € 0,00Year 7 € 6.020,88 0,01 € 60,21 € 5.975,34 € 12.056,43 0 € 0,00Year 8 € 4.335,03 0,01 € 43,35 € 5.994,50 € 10.372,89 0 € 0,00Year 9 € 3.121,22 0,01 € 31,21 € 6.086,30 € 9.238,73 0 € 0,00Year 10 € 3.121,22 0,01 € 31,21 € 6.074,73 € 9.227,16 € 0,00

How to create an optimized ROI Part 1Cash receivable Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Fair receipt € 52.500,00 € 52.500,00 € 52.500,00 € 52.500,00 € 52.500,00 € 52.500,00 € 52.500,00 € 52.500,00 € 52.500,00 € 52.500,00

Residale Value vehicle € 2.413,08 Depriciation € 57.109,50 € 35.978,99 € 22.666,76 € 14.280,06 € 8.996,44 € 5.667,76 € 3.570,69 € 2.249,53 € 1.417,21 Total receivables € 109.609,50 € 88.478,99 € 75.166,76 € 66.780,06 € 61.496,44 € 58.167,76 € 56.070,69 € 54.749,53 € 53.917,21 € 52.500,00 Expenses jaar 1 jaar 2 jaar 3 jaar 4 jaar 5 jaar 6 jaar 7 jaar 8 jaar 9 jaar 10 Salary € 42.581,25 € 42.581,25 € 42.581,25 € 42.581,25 € 42.581,25 € 42.581,25 € 42.581,25 € 42.581,25 € 42.581,25 € 42.581,25 Fuel and Ad-Blue € 13.667,15 € 13.667,15 € 13.667,15 € 13.667,15 € 13.667,15 € 13.667,15 € 13.667,15 € 13.667,15 € 13.667,15 € 13.667,15 Maintenance € 5.770,37 € 5.797,69 € 5.826,44 € 5.965,14 € 5.888,56 € 5.922,08 € 5.975,34 € 5.994,50 € 6.086,30 € 6.074,73 Insurance € 5.250,00 € 5.250,00 € 5.250,00 € 5.250,00 € 5.250,00 € 5.250,00 € 5.250,00 € 5.250,00 € 5.250,00 € 5.250,00

€ 1.715,00 € 1.715,00 € 1.715,00 € 1.715,00 € 1.715,00 Road Tax € 788,00 € 788,00 € 788,00 € 788,00 € 788,00 € 788,00 € 788,00 € 788,00 € 788,00 € 788,00 Tyres and tank hours € 2.545,15 € 2.545,15 € 2.545,15 € 2.545,15 € 2.545,15 € 2.545,15 € 2.545,15 € 2.545,15 € 2.545,15 € 2.545,15 Expenses € 72.316,92 € 16.095,84 € 16.124,59 € 16.263,29 € 16.186,71 € 14.505,23 € 14.558,49 € 14.577,65 € 14.669,45 € 14.657,88 EBT € 37.292,58 € 72.383,15 € 59.042,17 € 50.516,77 € 45.309,73 € 43.662,52 € 41.512,19 € 40.171,88 € 39.247,76 € 37.842,12 Taxes € 9.509,61 € 18.457,70 € 15.055,75 € 12.881,78 € 11.553,98 € 11.133,94 € 10.585,61 € 10.243,83 € 10.008,18 € 9.649,74 EAT € 27.782,97 € 53.925,44 € 43.986,41 € 37.635,00 € 33.755,75 € 32.528,58 € 30.926,58 € 29.928,05 € 29.239,58 € 28.192,38 Net Result € 27.782,97 € 53.925,44 € 43.986,41 € 37.635,00 € 33.755,75 € 32.528,58 € 30.926,58 € 29.928,05 € 29.239,58 € 28.192,38

Investment Net receivable 1 Net receivable 2 Net receivable 3 Net receivable 4 Net receivable 5 Net receivable 6 Net receivable 7 Net receivable 8 Net receivable 9 Net receivable 10 € 245.000,00 € 27.782,97 € 53.925,44 € 43.986,41 € 37.635,00 € 33.755,75 € 32.528,58 € 30.926,58 € 29.928,05 € 29.239,58 € 28.192,38 Investment period Year 1 € 245.000,00 € 27.782,97 € 217.217,03 1year

Year 2 € 217.217,03 € 53.925,44 € 163.291,59 2year

Year 3 € 163.291,59 € 43.986,41 € 119.305,17 3yearYear 4 € 119.305,17 € 37.635,00 € 81.670,18 38,0411 a 12 months Year 5 TP = 3,8 year

Average Invested Portion A-R/n/A*100 € 26.054,07 Average profit € 143.790,63

Accounttability Yield 18,11945226 Net Cash Value Method Jaar 1 Jaar 2 Jaar 3 Jaar 4 Jaar 5 Jaar 6 Jaar 7 Jaar 8 Jaar 9 Jaar 10 TotaalInterest feet 2,20 € 12.628,62 € 11.141,62 € 4.130,96 € 1.606,58 € 654,99 € 286,90 € 123,99 € 54,54 € 24,22 € 10,61 € 30.663,02 € 245.000,00

€ (214.336,98)Guidance through the investment pad of a coach by P. G.

How to create an optimized ROI Part 2Cash receivable Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Fair receipt € 52.500,00 € 52.500,00 € 52.500,00 € 52.500,00 € 52.500,00 € 52.500,00 € 52.500,00 € 52.500,00 € 52.500,00 € 52.500,00

Residale Value vehicle € 2.413,08 Depriciation € 57.109,50 € 35.978,99 € 22.666,76 € 14.280,06 € 8.996,44 € 5.667,76 € 3.570,69 € 2.249,53 € 1.417,21 Total receivables € 109.609,50 € 88.478,99 € 75.166,76 € 66.780,06 € 61.496,44 € 58.167,76 € 56.070,69 € 54.749,53 € 53.917,21 € 52.500,00 Expenses Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Salary € 42.581,25 € 42.581,25 € 42.581,25 € 42.581,25 € 42.581,25 € 42.581,25 € 42.581,25 € 42.581,25 € 42.581,25 € 42.581,25 Fuel and Ad-Blue € 13.667,15 € 13.667,15 € 13.667,15 € 13.667,15 € 13.667,15 € 13.667,15 € 13.667,15 € 13.667,15 € 13.667,15 € 13.667,15 Maintenance € 5.770,37 € 5.797,69 € 5.826,44 € 5.965,14 € 5.888,56 € 5.922,08 € 5.975,34 € 5.994,50 € 6.086,30 € 6.074,73 Insurance € 5.250,00 € 5.250,00 € 5.250,00 € 5.250,00 € 5.250,00 € 5.250,00 € 5.250,00 € 5.250,00 € 5.250,00 € 5.250,00

€ 1.715,00 € 1.715,00 € 1.715,00 € 1.715,00 € 1.715,00 Road Tax € 788,00 € 788,00 € 788,00 € 788,00 € 788,00 € 788,00 € 788,00 € 788,00 € 788,00 € 788,00 Tyres and tank hours € 2.545,15 € 2.545,15 € 2.545,15 € 2.545,15 € 2.545,15 € 2.545,15 € 2.545,15 € 2.545,15 € 2.545,15 € 2.545,15 Expenses € 72.316,92 € 16.095,84 € 16.124,59 € 16.263,29 € 16.186,71 € 14.505,23 € 14.558,49 € 14.577,65 € 14.669,45 € 14.657,88 EBT € 37.292,58 € 72.383,15 € 59.042,17 € 50.516,77 € 45.309,73 € 43.662,52 € 41.512,19 € 40.171,88 € 39.247,76 € 37.842,12 Taxes € 9.509,61 € 18.457,70 € 15.055,75 € 12.881,78 € 11.553,98 € 11.133,94 € 10.585,61 € 10.243,83 € 10.008,18 € 9.649,74 EAT € 27.782,97 € 53.925,44 € 43.986,41 € 37.635,00 € 33.755,75 € 32.528,58 € 30.926,58 € 29.928,05 € 29.239,58 € 28.192,38 Net Result € 27.782,97 € 53.925,44 € 43.986,41 € 37.635,00 € 33.755,75 € 32.528,58 € 30.926,58 € 29.928,05 € 29.239,58 € 28.192,38

Investment Net receivable 1 Net receivable 2 Net receivable 3 Net receivable 4 Net receivable 5 Net receivable 6 Net receivable 7 Net receivable 8 Net receivable 9 Net receivable 10 € 245.000,00 € 27.782,97 € 53.925,44 € 43.986,41 € 37.635,00 € 33.755,75 € 32.528,58 € 30.926,58 € 29.928,05 € 29.239,58 € 28.192,38 Investment periode Year 1 € 245.000,00 € 27.782,97 € 217.217,03 1year Year 2 € 217.217,03 € 53.925,44 € 163.291,59 2year

€ 163.291,59 € 43.986,41 € 119.305,17 3 Year 3 € 119.305,17 € 37.635,00 € 81.670,18 38,04year Year 4 TP = 3,8 jaar 11 a 12 months Year 5

Average Invested Portion A-R/n/A*100 € 26.054,07 Average profit € 143.790,63

Accounttability Yield 18,11945226 Net Cash Value Method Jaar 1 Jaar 2 Jaar 3 Jaar 4 Jaar 5 Jaar 6 Jaar 7 Jaar 8 Jaar 9 Jaar 10 TotaalInterest feet 2,20 € 12.628,62 € 11.141,62 € 4.130,96 € 1.606,58 € 654,99 € 286,90 € 123,99 € 54,54 € 24,22 € 10,61 € 30.663,02 € 245.000,00

€ (214.336,98)Guidance through the investment pad of a coach by P. G.

Targeted results (Operating Income Sheet)

In both sheets the income statements of two depriciation methods are calculated. There is not a very big difference in the net result as it can be seen in both of the income sheets. More over each operator is calculating for specific projects. This is more of an example how an investment method can be approached and calculated over a periode of 5 to 10 years in which a coach operates in an enterprise.


Exploitation after 10 years (lineair depriciation) Exploitation after 10 years (degressiv depriciation)

Turnover Turnover Rides over the year € 525.000,00 Rides over the year € 525.000,00 Totaal € 525.000,00 Totaal € 525.000,00 Costs Costs Depriciation € 151.936,92 Depriciation € 146.324,00 Interest-Insurance-Road Taks

€ 14.845,00 Interest-Insurance-Road Taks

€ 14.845,00 Maintenance € 59.301,15 Maintenance € 59.301,15 Salary and Pension € 101.921,85 Salary and Pension € 101.921,85 Downtime Downtime Fixed cost € 328.004,92 Fixed cost € 322.392,00 Fuel + Ad-Blue € 18.802,00 Fuel + Ad-Blue € 18.802,00 Phone € 1.800,00 Phone € 1.800,00 Overhead € 22.500,00 Overhead € 22.500,00 Empty Rides and tank hours € 7.451,50 Empty Rides and tank hours € 7.451,50 Tyres and maintenance € 14.345,37 Tyres and maintenance € 14.345,37 Variable costs € 64.898,87 Variable costs € 64.898,87

EBITDA € 132.096,21 EBITDA € 137.709,13 Depriciation € 196.912,34 Depriciation € 146.324,00

EBIT € -64.816,14 EBIT € -8.614,88 Depriciation € 196.912,34 Depriciation € 146.324,00 EBT € 132.096,21 EBT € 137.709,13 Taxes 25,5 % € 33.684,53 Taxes 25,5 % € 35.115,83

Net result € 98.411,67 Net result € 102.593,30

Lower the costs and optimize profit (Break Even analysis)


KILOMETERS FIXED COST P/KM VARIABLE COST P/KM VEHICLE TYPE (1) INCOME FROM DRIVES SEATS EARNINGS PER SEAT COST PER SEAT FIXES COST VARIABLE COST TOTAL C FIX/VAR NET INCOME

0 #DIV/0! #DIV/0! Irizar I6 4x2 (13 MTR) € - 57 € - #DIV/0! € 83.538,68 € - € 83.538,68 € -83.538,68

30.000 € 2,78 € 0,86 Irizar I6 4x2 (13 MTR) € 27.000,00 57 € 473,68 € 3,65 € 83.538,68 € 11.088,06 € 94.626,74 € -67.626,74

40.000 € 2,09 € 0,65 Irizar I6 4x2 (13 MTR) € 36.000,00 57 € 631,58 € 2,74 € 83.538,68 € 14.784,09 € 98.322,77 € -62.322,77

50.000 € 1,67 € 0,52 Irizar I6 4x2 (13 MTR) € 45.000,00 57 € 789,47 € 2,19 € 83.538,68 € 18.480,11 € 102.018,79 € -57.018,79

60.000 € 1,39 € 0,43 Irizar I6 4x2 (13 MTR) € 54.000,00 57 € 947,37 € 1,82 € 83.538,68 € 22.176,13 € 105.714,81 € -51.714,81

70.000 € 1,19 € 0,37 Irizar I6 4x2 (13 MTR) € 63.000,00 57 € 1.105,26 € 1,56 € 83.538,68 € 25.872,15 € 109.410,83 € -46.410,83

80.000 € 1,04 € 0,32 Irizar I6 4x2 (13 MTR) € 72.000,00 57 € 1.263,16 € 1,37 € 83.538,68 € 29.568,17 € 113.106,85 € -41.106,85

80.000 € 1,04 € 0,32 Irizar I6 4x2 (13 MTR) € 72.000,00 57 € 1.263,16 € 1,37 € 83.538,68 € 29.568,17 € 113.106,85 € -41.106,85

210.000 € 0,40 € 0,12 Irizar I6 4x2 (13 MTR) € 189.000,00 57 € 3.315,79 € 0,52 € 83.538,68 € 77.616,45 € 161.155,13 € 27.844,87

220.000 € 0,38 € 0,12 Irizar I6 4x2 (13 MTR) € 198.000,00 57 € 3.473,68 € 0,50 € 83.538,68 € 81.312,47 € 164.851,15 € 33.148,85

230.000 € 0,36 € 0,11 Irizar I6 4x2 (13 MTR) € 207.000,00 57 € 3.631,58 € 0,48 € 83.538,68 € 85.008,49 € 168.547,17 € 38.452,83

240.000 € 0,35 € 0,11 Irizar I6 4x2 (13 MTR) € 216.000,00 57 € 3.789,47 € 0,46 € 83.538,68 € 88.704,51 € 172.243,19 € 43.756,81

250.000 € 0,33 € 0,10 Irizar I6 4x2 (13 MTR) € 225.000,00 57 € 3.947,37 € 0,44 € 83.538,68 € 92.400,54 € 175.939,22 € 49.060,78

260.000 € 0,32 € 0,10 Irizar I6 4x2 (13 MTR) € 234.000,00 57 € 4.105,26 € 0,42 € 83.538,68 € 96.096,56 € 179.635,24 € 54.364,76

270.000 € 0,31 € 0,10 Irizar I6 4x2 (13 MTR) € 243.000,00 57 € 4.263,16 € 0,41 € 83.538,68 € 99.792,58 € 183.331,26 € 59.668,74

280.000 € 0,30 € 0,09 Irizar I6 4x2 (13 MTR) € 252.000,00 57 € 4.421,05 € 0,39 € 83.538,68 € 103.488,60 € 187.027,28 € 64.972,72

290.000 € 0,29 € 0,09 Irizar I6 4x2 (13 MTR) € 261.000,00 57 € 4.578,95 € 0,38 € 83.538,68 € 107.184,62 € 190.723,30 € 70.276,70

300.000 € 0,28 € 0,09 Irizar I6 4x2 (13 MTR) € 270.000,00 57 € 4.736,84 € 0,36 € 83.538,68 € 110.880,64 € 194.419,32 € 75.580,68

520.000 € 0,16 € 0,05 Irizar I6 4x2 (13 MTR) € 468.000,00 57 € 8.210,53 € 0,21 € 83.538,68 € 192.193,11 € 275.731,79 € 192.268,21

530.000 € 0,16 € 0,05 Irizar I6 4x2 (13 MTR) € 477.000,00 57 € 8.368,42 € 0,21 € 83.538,68 € 195.889,14 € 279.427,82 € 197.572,18

540.000 € 0,15 € 0,05 Irizar I6 4x2 (13 MTR) € 486.000,00 57 € 8.526,32 € 0,20 € 83.538,68 € 199.585,16 € 283.123,84 € 202.876,16

550.000 € 0,15 € 0,05 Irizar I6 4x2 (13 MTR) € 495.000,00 57 € 8.684,21 € 0,20 € 83.538,68 € 203.281,18 € 286.819,86 € 208.180,14

560.000 € 0,15 € 0,05 Irizar I6 4x2 (13 MTR) € 504.000,00 57 € 8.842,11 € 0,20 € 83.538,68 € 206.977,20 € 290.515,88 € 213.484,12

570.000 € 0,15 € 0,05 Irizar I6 4x2 (13 MTR) € 513.000,00 57 € 9.000,00 € 0,19 € 83.538,68 € 210.673,22 € 294.211,90 € 218.788,10

580.000 € 0,14 € 0,04 Irizar I6 4x2 (13 MTR) € 522.000,00 57 € 9.157,89 € 0,19 € 83.538,68 € 214.369,24 € 297.907,92 € 224.092,08

590.000 € 0,14 € 0,04 Irizar I6 4x2 (13 MTR) € 531.000,00 57 € 9.315,79 € 0,19 € 83.538,68 € 218.065,26 € 301.603,94 € 229.396,06

600.000 € 0,14 € 0,04 Irizar I6 4x2 (13 MTR) € 540.000,00 57 € 9.473,68 € 0,18 € 83.538,68 € 221.761,29 € 305.299,97 € 234.700,03

Lower the costs and optimize profit (BREAK EVEN chart)


0 100,000 200,000 300,000 400,000 500,000 600,000 700,000 €-

€100,000.00

€200,000.00

€300,000.00

€400,000.00

€500,000.00

€600,000.00

Break Even Turnover/Sales

OPBRENGST UIT RITTEN VASTE KOSTEN VARIABELE KOSTEN TOTALE KN VAST/VAR vermoedelijk BEA = 157501,919069537

Aantal kilometers

Axis

Titl

e

Break even X Break even Y Label

157.502 € 141.752 vermoedelijk BEA = 157501,919069537

Lower the costs and optimize profit (Explanation)

I. In the last two slides before this one, there is an overview of the how to’s in order to be profitable by calculating the costs and profits per coach in every segment. This is namely the key answer to take the right decision to choose a coach for several of projects or to buy more for a single project. That depends on the market in which the enterprise is operating in.

I. Through a expanded use of variables it is much more easier to decide whether it is prudent to invest or not. Especially if a projects asks for a coach of the latest standards, it is more then logical sence to make a project out of it and ask accountants, businesspartners, investors for good advice.

I. In the break-even analysis (the chart) it is visible when an bus is break-even, or the moment that costs and revenues reaches the same level. All what is more is pure profit, the more kilometers a bus/coach drives the more profitable the faster the investment will be earned.

I. The slide (13) in which is referred to the different calculations is based on the expected mile ages a bus drives each year. That is the basis to manage a detailled scheme with different results. The lesser the turn around or mile age the lower the turnover. However if certain projects demanding an higher mile age / turn around the turnover and eventually the profits as well becomes much more higher.


Optimize profit (Break even Load) In this example it is explained of how coach operators can calculate their Break Even Load at a minimum to cover at least all

frequent costs. It is a leading example to make thorough decisions in how to take steps towards a possible buy of a new coach/bus.


Break even LoadSeats in Vehicle Fixed costs Variable costs Turnover

57 € 83.538,68 € 25.872,15 € 141.751,73

Percentage off/total 0,24Total costs € 109.410,83

Optimum Break even Load

Stap 1: Fixed + Variable € 109.410,83Stap 2: Decide X € 1.417,52 € 450,00Stap 3: Decide X = 24,1 % € 335,20 € 0,00Stap 4: Decide Unkwown = X € 1.082,32 € 450,00Stap 5: Break even Load 77,2 185,6415119

Vehicle deployment at Y kilometer Turnover Total Costs Load grade in %

50.000 € 45.000,00 € 102.018,79 226,71100.000 € 90.000,00 € 120.498,89 133,89150.000 € 135.000,00 € 138.979,00 102,95200.000 € 180.000,00 € 157.459,11 87,48250.000 € 225.000,00 € 175.939,22 78,20300.000 € 270.000,00 € 194.419,32 72,01350.000 € 315.000,00 € 212.899,43 67,59400.000 € 360.000,00 € 231.379,54 64,27450.000 € 405.000,00 € 249.859,64 61,69500.000 € 450.000,00 € 268.339,75 59,63

Break even Load

O = Fixed costs + Variable costs

X 1 / 100 x € 158.725,40 = € 81954,85 + 0,24 x X / 100 x 158.725,40

€ 1587,25 x X= € 81.954,85 + € 380,94 x X

€ 1587,25 x X - € 380,94 x X = € 81.954,85

€ 1206,31 x X = € 81.954,85

X = € 81.954,85 / € 1206,31 = 67,9 % Break even load grade

0 100,000 200,000 300,000 400,000 500,000 600,000€ 0.00

€ 50,000.00

€ 100,000.00

€ 150,000.00

€ 200,000.00

€ 250,000.00

€ 300,000.00

€ 350,000.00

€ 400,000.00

€ 450,000.00

€ 500,000.00f(x) = 57389.7846897455 exp( 4.60813609697445E-06 x )R² = 0.905661305353485

Beladingsgraad

Optimize profit using solver


Ideal fair price/kilometers Restrictions

Kilometers Variable cost total deployment/km Fixed cost deployment/km Minimum deplKilometer cost price Max deployment Storage rate Turnover

30.000 € 11.088,06 € 25.138,06 20.000 € 1,21 30.000 1,50 € 54.339,18 40.000 € 14.784,09 € 33.517,41 30.000 € 1,21 40.000 1,50 € 72.452,24 50.000 € 18.480,11 € 41.896,76 40.000 € 1,21 50.000 1,50 € 90.565,30 60.000 € 22.176,13 € 50.276,11 50.000 € 1,21 60.000 1,50 € 108.678,36 70.000 € 25.872,15 € 58.655,46 60.000 € 1,21 70.000 1,50 € 126.791,42 80.000 € 29.568,17 € 67.034,82 70.000 € 1,21 80.000 1,50 € 144.904,48 90.000 € 33.264,19 € 75.414,17 80.000 € 1,21 90.000 1,50 € 163.017,54 100.000 € 36.960,21 € 83.793,52 90.000 € 1,21 100.000 1,50 € 181.130,60 110.000 € 40.656,24 € 92.172,87 100.000 € 1,21 110.000 1,50 € 199.243,66 120.000 € 44.352,26 € 100.552,22 110.000 € 1,21 120.000 1,50 € 217.356,72 130.000 € 48.048,28 € 108.931,57 120.000 € 1,21 130.000 1,50 € 235.469,78 140.000 € 51.744,30 € 117.310,93 130.000 € 1,21 140.000 1,50 € 253.582,84 150.000 € 55.440,32 € 125.690,28 140.000 € 1,21 150.000 1,50 € 271.695,90 160.000 € 59.136,34 € 134.069,63 150.000 € 1,21 160.000 1,50 € 289.808,96

Ideal fair price/capacity Restricttions

Seat Capacity Variable costs per seat Fixed cost per seat deployment Cost per seat Maximum capacity Storage rate Turnover Outcome after solver25 € 1.034,89 € 3.341,55 80 € 2,08 2.100 43 € 95.407,51 € 1.192,5930 € 862,41 € 2.784,62 80 € 1,52 2.400 64 € 158.338,04 € 1.979,2335 € 739,20 € 2.386,82 80 € 1,12 2.800 30 € 87.215,34 € 1.090,1940 € 646,80 € 2.088,47 80 € 0,85 3.200 30 € 98.803,65 € 1.235,0545 € 574,94 € 1.856,42 80 € 0,68 3.600 30 € 110.485,38 € 1.381,0750 € 517,44 € 1.670,77 80 € 0,55 4.000 30 € 122.231,98 € 1.527,9055 € 470,40 € 1.518,89 80 € 0,45 4.400 30 € 134.025,46 € 1.675,3260 € 431,20 € 1.392,31 80 € 0,38 4.800 30 € 145.853,91 € 1.823,1765 € 398,03 € 1.285,21 80 € 0,32 5.200 30 € 157.709,14 € 1.971,3670 € 369,60 € 1.193,41 80 € 0,28 5.600 30 € 169.585,34 € 2.119,8275 € 344,96 € 1.113,85 80 € 0,24 6.000 30 € 181.478,26 € 2.268,4880 € 323,40 € 1.044,23 80 € 0,21 6.400 30 € 193.384,73 € 2.417,3185 € 304,38 € 982,81 80 € 0,19 6.800 30 € 205.302,33 € 2.566,2890 € 287,47 € 928,21 80 € 0,17 7.200 30 € 217.229,18 € 2.715,36

Optimize profit using solver (Dutch language)

This solver belongs to the first calculation of sheet 17.


Microsoft Excel 15.0 AntwoordrapportWerkblad: [Investeringsanalyse.xlsm]OptimumRapport gemaakt: 12-4-2016 01:41:13Resultaat: Oplosser heeft een oplossing gevonden. Alle randvoorwaarden en optimalisatievoorwaarden zijn vervuld.Oplosser-engine

Engine: GRG NonlinearOplossingstijd: 2,578 Seconden.Iteraties: 2 Subproblemen: 0

Opties voor OplosserMaximale tijd Onbeperkt, Iteraties Onbeperkt, Precision 0,000001 Convergentie 0,0001, Populatiegrootte 0, Willekeurige seed 0, Afgeleiden voorwaartsMaximum aantal subproblemen Onbeperkt, Max geheeltallige opl Onbeperkt, Geheeltallige tolerantie 1%, Oplossen zonder geheeltallige randvoorwaarden, Uitgaan van niet-negatief

Doelfunctiecel (Waarde van)Cel Naam Oorspronkelijke waarde Eindwaarde

$J$4 Omzet € 85.000,00 € 95.000,00

VariabelecellenCel Naam Oorspronkelijke waarde Eindwaarde Geheeltallig

$F$4 Inzetdagen 9.497 80Vervolg$H$4 Maximum capaciteit 2.100 2.100Vervolg$I$4 Opslagpercentage 30 43Vervolg

RandvoorwaardenCel Naam Celwaarde Formule Status Speling

$I$4 Opslagpercentage 43$I$4>=$I$4 Bindend 0$J$4 Omzet € 95.000,00$J$4=95000 Bindend 0$F$4 Inzetdagen 80$F$4<=80 Bindend 0$H$4 Maximum capaciteit 2.100$H$4<=2100 Bindend 0

Optimize profit using solver (Dutch language)

This solver belongs to the second calculation of sheet 17.


Microsoft Excel 15.0 AntwoordrapportWerkblad: [Investeringsanalyse.xlsm]OptimumRapport gemaakt: 12-4-2016 01:43:53Resultaat: Oplosser heeft een oplossing gevonden. Alle randvoorwaarden en optimalisatievoorwaarden zijn vervuld.Oplosser-engine

Engine: GRG NonlinearOplossingstijd: 5,265 Seconden.Iteraties: 2 Subproblemen: 0

Opties voor OplosserMaximale tijd Onbeperkt, Iteraties Onbeperkt, Precision 0,000001

Convergentie 0,0001, Populatiegrootte 0, Willekeurige seed 0, Afgeleiden voorwaartsMaximum aantal subproblemen Onbeperkt, Max geheeltallige opl Onbeperkt, Geheeltallige tolerantie 1%, Oplossen zonder geheeltallige randvoorwaarden, Uitgaan van niet-negatief

Doelfunctiecel (Waarde van)Cel Naam Oorspronkelijke waarde Eindwaarde

$J$5 Omzet € 75.430,56 € 158.000,00

VariabelecellenCel Naam Oorspronkelijke waarde Eindwaarde Geheeltallig

$F$4 Inzetdagen 80 80Vervolg$H$4 Maximum capaciteit 2.100 2.100Vervolg$I$4 Opslagpercentage 43 43Vervolg$F$5 Inzetdagen 80 80Vervolg$H$5 Maximum capaciteit 2.400 2.400Vervolg$I$5 Opslagpercentage 30 64Vervolg

RandvoorwaardenCel Naam Celwaarde Formule Status Speling

$I$5 Opslagpercentage 64$I$5>=$I$5 Bindend 0$J$5 Omzet € 158.000,00$J$5=158000 Bindend 0$F$5 Inzetdagen 80$F$5<=80 Bindend 0$H$5 Maximum capaciteit 2.400$H$5<=2400 Bindend 0

Purchase, warrantee, residual value and lifetime

The purchase price of an vehicle is always based on the specification you are asking as entrepreneur, the brand identity and positioning in the market as well as the recognition.

The specification is always in line with the policy of the enterprise, because they are know what they are looking for and are familiair with the deployment of the coaches in general, allthough there is a huge difference between international lines, intercity’s and short distance transport.

Most suppliers are offering tailor made repair and maintenance contracts with a international covering, fixed price and parts supply in it. This is an advantage for big fleets who do not want to rely on different service stations, they want to keep control on their TCO, Total Cost of Ownership in combination a full covered service Europe wide.

Finance is arranged by the corporate banks ore the finance companies owned by the distributors/suppliers of the vehicles and are able to offer individually tailor made leasing/financing solutions for the end customer, which is commonly of more interest than corparate banks offer.

The residuale value of A-brand coaches are fixed, because they have a huge network of own traders and contacts all over the world to dispose second hand vehicles with a high stock rotation. Brands with a strong home market but which are not primarilly focussed on high-end markets can or wil not give to high trade-in values. A-labelled brands do have their own remarket stores and dealerships and carry this actively out in their strategy to the market and maintain an leadership position.


operations for coaches (investment in new equipment)

Automotive