Executive Summary 1.0 Executive Summary A Blissful D Travelers Coffee (ABC(DTC) is a specialty beverage retailer.

ABC DTC uses a system that is new to the beverage and food service industry to provide hot and cold beverages in a convenient and time-efficient way. ABCDTC provides its customers the ability to drop down or stop for awhile and order (from a trained Barista) their choice of a custom-blended espresso drink, freshly brewed coffee, or other beverage. ABDTC is offering a high-quality option to the fast-food, gas station, or institutional coffee. A BlissfulD Travelers Coffee offers its patrons the finest hot and cold beverages, specializing in specialty coffees, blended teas, and other custom drinks. In addition, ABCDTC will offer soft drinks, fresh-baked pastries and other confections. Seasonally, ABDTC will add beverages such as hot chocolate, frozen coffees, and more. A BlissfulD Travelers Coffee will focus on two markets: The Daily Commuter consists of people who are traveling to/from work, out for shopping, delivering goods or services, or just out for a drive. The Captive Consumer- someone who is in a restricted environment that does not allow convenient departure and return while searching for refreshments, or where refreshments stands are an integral part of the environment such as students, reviewers, and young professionals. A BlissfulD Travelers Coffee will penetrate the commuter and captive consumer markets by deploying two Mobile Cafes in the most logical and accessible locations. The Mobile Cafes facilities are designed to dispense customer-designed, specially ordered cups of premium coffees in less time than required for a visit to the locally owned cafe or one of the national chains. In addition to providing a quality product and an extensive menu of delicious items, to ensure customer awareness and loyalty, as well as good publicity coverage and media support, the caf will be donating up to 1.0.85% per cup to local charities based upon customer choices. A BlissfulD Travelers Coffee financial picture is quite promising. Since ABDTC is operating a cash business, the initial cost is significantly less than many start-ups these days. The process is labor intensive and ABDTC recognizes that a higher level of talent is required. The financial investment in its employees will be one of the greatest differentiators between it and ABDTC's competition. For the purpose of this pro-forma plan, the capital expenditures of facilities and equipment are financed. A BlissfulD Travelers Coffee Page 1 of 45

There will be minimum inventory on hand so as to keep the product fresh and to take advantage of price drops, when and if they should occur. A BlissfulD Travelers Coffee anticipates the initial combination of investments and long term financing of P32,550601,654000.01 to carry it without the need for any additional equity or debt investment, beyond the purchase of equipment or facilities. This will mean growing a bit more slowly than might be otherwise possible, but it will be a solid, financiallysound growth based on customer request and product demand. A BlissfulD Travelers Coffee chooses to become the Mobile Cafe version of Starbucks in metropolitan areas where people are too busy to prepare for their coffee whether for refreshment or for their relaxation, obtaining several million pesos through investment of the partners and obtain financing in the financial institutions that would allow the company to produce 2 mobile cafe facilities per year in metropolitan communities within Metro Manila with a population of over 1512 million. This is the preferred Exit Strategy of the Management Team. The danger in this is that competitors would rise up and establish a foothold on a community before--or in the midst of--the arrival of A BlissfulD Travelers Coffee, causing a potential for a drain on revenues and a dramatic increase in advertising expenditures to maintain market share. Knowing these riskss --and planning for them -- gives ABDTC the edge needed to make this scenario work. The balance sheet estimates a Net Worth of P4,000259,000861.32 for the third year, cash balances of P3,61335,000207.31 and earnings of P3,417557200,000.070, based on 1 six Mobile Cafes, it is not unrealistic to put a market value of between 52 and 65 million on the company. At present, such companies are trading in multiples of four to 10 times earnings, and it is simple mathematics to multiply the success of ABDTC by the number of major and smaller metropolitan areas in greater Metro Manila.

Highlights

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Company Projections in (thousands)

4,000 3,000 2,000 1,000 0 2012 2013 2014 Net Worth Sales Net Income

35,000,000.00 30,000,000.00 25,000,000.00 20,000,000.00 15,000,000.00 10,000,000.00 5,000,000.00 (5,000,000.00) 2009 2010 2011 Net Proft Sales

Gross Margin

1.1 Objectives A BlissfulThe D Travelers Coffee has established three firm objectives it wishes to achieve in the next three years: 1. 2. 3. Six fully booked Mobile Cafes by the end of the third year. Gross Margin of 4045% or more. Net After-tax Profit above 2015% of Sales.

1.2 Mission A BlissfulThe D Travelers Coffee Mission is three-fold, with each being as integral to our success as the next. Product Mission Provide customers the finest quality beverage in the most efficient time and most affordable prices. Community Mission A BlissfulD Travelers Coffee Page 3 of 45

Provide community support through customer involvement and promote environmental awareness. Economic Mission Operate and grow at a profitable rate through sound economic decisions. 1.3 Keys to Success There are four keys to success in this business, three of which are virtually the same as any foodservice business. It is our fourth key -- the Community Mission -- that will give us that extra measure of respect in the public eye. 1. The greatest locations - visibility, jam-packed areas (students and young professionals), convenient access. 2. The best products - freshest coffee beans, cleanest equipment, premium serving containers, consistent flavor. 3. The friendliest servers - cheerful, skilled, professional, articulate. 4. The finest reputation - word-of-mouth advertising, promotion of our community mission of charitable giving.

Company Summary 2.0 Company Summary The A BlissfulD Travelers Coffeeee is a specialty beverage retailer. ABDTC uses a system that is new to the beverage and food service industry to provide hot and cold beverages in a convenient and timeefficient way at very affordable prices. ABDTC provides its customers the ability to order from a trained Barista their choice of a custom blended espresso drink, freshly brewed coffee, or other beverage. ABDTC is offering a high quality option to the fast-food, gas station, and institutional coffee. 2.1 Company Ownership The D Travelers Coffee is a General Partnership. The partnerhip is owned by Aleli Carreon, Michelle dela Cruz,Randy Mercado, Nelvin Eduardo, Angela Miranda and Jeanilyn Paguiriganay Santos who have developed their friendship while taking their masters degree in Jose Rizal A BlissfulD Travelers Coffee Page 4 of 45

UniversityPamantasan ng Lungsod ng Maynila (JRUPLM) and later on decided to put up a business which is the D TravelersA Blissful Coffee after taking the course Entrepreneurship under Mr. Limuel Magracia. . The plan requires initial cash outlay for the partners. Each partner would have an equal investment of P300333,884000.67. The partnership would also avail borrowings through financial institutions amounting P1,3600,000.00 to support for the financial needs such as purchasing of equipments, vehicles and other materials needed in starting up the business. 2.2 Start-up Summary A BlissfulThe D Travelers Coffee's start-up expenses total just P381600,654000.00.. The majority of these funds - -roughly P4500,000 -will be used to build the first facility, pay deposits, and provide capital for one month of operating expenses. Another P1580,000 will be used for the initial inventory and other one-time expenses. The D TravelersA Blissful Coffee anticipates the need for roughly P30250,000.00 in operating capital for the first few months of operation.

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Start-up One Time Requirements Before Start-Up Advertising & Promotions Deposits for Utilities Licenses & Permits Vehicle Finance Prepaid Insurance Salary & Wages Office Rent/Mortgage Other Startup Costs TOTAL START UP EXPENSES START-UP ASSETS Start Up Inventory Cash (Working Capital) Current Assets Tools & Supplies Non Current Asset Furniture & Fixtures Machines & Equipment A BlissfulD Travelers Coffee 16085,00 0.00 4300,000. b/ Page 6 of 45 1580,000 .00 430,000 .00 2550,,0 00.00 430,000 .00 10,7,0 00.00 1000,000 .00 630,000 654.00 105,00 0.00 15064,00 0.00 6015,00 0.00 230,000 .00 450381,0 0654.000

Mobile VansTruck TOTAL ASSETS TOTAL REQUIREMENTS START UP FUNDING Start-up Expenses to Fund Start-up Assets to Fund Total Funding Required

00 1,70600,00 0.00

2,2601,985 ,000.00 2,50220,00 0.00 2,950601,0 00654.00 450381,0 00654.00 2,50220,00 0.00 2,950601,0 00654.00 Assets

Non-cash Assets from Start-up Cash Requirements from Start-up Inventory Total Assets

2,310,0001 90,000.00 430,000 .00 150,000 2,50220,00 0.00

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Liabilities and Capital Liabilities Current Borrowing Long-term Liabilities Accounts Payable (Outstanding Bills) Other Current Liabilities Total Liabilities Capital Total Capital and Liabilities d/ Capital STATEMENT Planned Investment Randy MercadoAleli Carreon, Capital Michelle dela CruzNelvin Eduardo, Capital Angela MirandaJeannilyn Paguirigan, Capital Jay Santos, Capital Additional Investment Requirement Less: Start up Expenses Total Capital a/ b/ 50,000 1,7600,000 .00 1,750600,0 00.00 75620,00 0.00 2,50220,00 0.00

333,884.6 7 300,000 300,0003 3,884.67 333,884.6 6 300,000 300,000 (450381,6 54.000) 750,0062 0,000.00

P30,654.00/ month, each customized vans cost P800,000.00. 130,000.0 computers/cash register 0 100,000.0 coffee maker/coffee brewer 0 36,000.0 Ref 0 34,000.0 Others 0 Page 8 of 45

A BlissfulD Travelers Coffee

TOTAL c/ OPERATION Mobile Cafe Team 3 Barista 3 Driver/Assitant Store Manager Subtotal MANAGEMENT General Manager Sales and Marketing Personnel Accounting/Office Administrator/Payroll Warehouse Inventory Clerk Total Payroll Total People

300,000.0 0

60,000.0 0 30,000.0 0 18,000.0 0

25,000.0 0 11,000.0 0 11,000.0 0 9,000.0 0 164,000.0 0 12

Start-up Graph

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Start Up Graph

2,500,000.00

2,000,000.00

1,500,000.00

1,000,000.00

500,000.00

Expense Assets Investments Loans

2,000 1,500 1,000 500 0 Longterm Loans Capital Contribution Short term loans

Funding

2,500 2,000 1,500 1,000 500 0 Funding Requirements Capital Assets Start up expenses Other Assets Inventory Cash

2.3 Company Locations and Facilities The D TravelersA Blissful Coffee will strategically locate to Makati, Ortigas, University Belt and LRT/MRT areas. Basically each Mobile Caf will be covering two areas one will be assigned in Ortigas-Makati areas and the other one will be assigned to the busy streets of University belt A BlissfulD Travelers Coffee Page 10 of 45

and LRT/MRT stations. Two mobiles cafes will be added throughout the metropolitan area each year. The demographic and physical requirements for a Mobile Cafes location are: Visible from roadway. Easy entry with light if less than 30,000 cars. Established retail shops in area. Areas must consist of busy persons (student, commuters and young professionals)

Products 3.0 Products The D Travelers CoffeeA Blissful Coffee provides its patrons the finest hot and cold beverages, specializing in specialty coffees and custom blended teas. In addition, ABDTC will offer select domestic soft drinks, , I sodas, fresh-baked pastries, and other confections. Seasonally, ABDTC will add beverages such as hot chocolate, frozen coffees, seasonal tea such as ginger tea during Christmas and more. 3.1 Product Description ABDTC provides its customers, two (2) Mobile Cafes, the ability to custom order a coffee beverage that will be blended to their exact specifications. Each of Baristas are trained in the fine art of brewing, blending, and serving the highest quality hot and cold beverages, with exceptional attention to detail. Besides coffees, D TravelersA Blissful Coffee will offer teas, sodas, frozen coffee beverages, seasonal specialty drinks, pastries, and other baked goods. Through the website and certain locations, ABDTC will market premium items such as coffee mugs, T-shirts and sweatshirts, ball caps, and more. 3.2 Competitive Comparison D TravelersA Blissful Coffee considers itself to be a player in the retail coffee house industry. However, it knows that competition for its products range from soft drinks to milkshakes to adult beverages.

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The D TravelersA Blissful Cofffee primary competition will come from three sources: National coffee houses such as Starbucks, Seatlles Best and Gloria Jeans Locally owned and operated cafes such Figaro Fast food chains and convenience stores such as Mrs. Fields, 7Eleven stores, Mini-stop, Mister Donut and Dunkin Donuts.

What will make D TravellersAB Coffee stand out from all its competitors are two things: The D TravellersA Blissful Coffee will be providing products in the most convenient and efficient way available at two Mobile Cafes. This separates ABDTC from the competition in that its customers won't need to find a parking place, wait in a long line, jockey for a seat, and clean up the mess left by a previous patron. The second differentiator is that ABDTC will focus on providing a significant benefit to the community through a possible 1.085% contribution to customer-identified Commuters, schools, or other institutions. 3.3 Sourcing ABDTC purchases its coffees from Nestle, Phils and locally produced coffee beans from in Batangas and Benguet. DTABC also has wholesale purchasing agreements for other products with major brands namely Lipton Inc., San Miguel Corporation, Goldilocks, Red Ribbon, CWU Cakes and Coca Cola Corporation.. The Mobile Cafes are manufactured and equipments are supplied by ALJENMIC Industries. ABDTC computer equipment and Internet connectivity is provided by PLDT Telecommunications. 3.4 Technology ABDTC delivery system is based on its technology. ABDTC is using stateof-the-art, two-sided, door to door to provide convenience and efficiency for its clientele. DTABC has also designed as state-of-the-art Mobile Cafes that will be deployed from time to time on high school and college campuses, corporate campuses, and at special events and business establishments particularly in Makati and Ortigas. 3.5 Future Products A BlissfulD Travelers Coffee Page 12 of 45

As seasons change, ABDTC will be offering products that will enhance sales and satisfy its customers' desires. During summer months, ABDTC will subsidize lower hot beverage sales with frozen coffee drinks, as well as soft drinks, and other cold beverages. ABDTC will also have special beverages during holiday seasons, such as hot choco, hot ginger (salabat) partner with bibingka during Simbang Gabi on Christmas season and shakes during Summer. ABDTC primary desire will be to listen to its customers to ascertain what they are looking for most, and make the best effort to provide it all. Market Analysis Summary 4.0 Market Analysis Summary DTABC will focus on two markets: 1. The Daily Commuter- someone traveling to or from work, out shopping, delivering goods or services, or just out for a drive. 2. The Captive Consumer- someone who is in a restricted environment that does not allow convenient departure and return while searching for refreshments, or where refreshments stands are an integral part of the environment. 4.1 Market Segmentation ABDTC will focus on two different market segments: Commuters and Captive Consumers. To access both of these markets, the commuters, and captive consumer. Commuters are defined as any one or more individuals in a motorized vehicle traveling from point "A" to point "B." ABDTC greatest concentration will be on commuters heading to or from work, or those out on their lunch break. Captive Consumers would include those who are tethered to a campus environment, or in a restricted entry environment that does not allow free movement to and from. Examples would include college and review campuses, where there is limited time between classes, and corporate campuses where the same time constraints are involved, but regarding meetings and project deadlines, and special events -- such as carnivals, fairs or festivals -- where there is an admission price to enter the gate, but exiting would mean another admission fee, or where refreshments are an integral part of the festivities. The following chart and table reflect the potential numbers of venues available for the Mobile Cafes and what growth could be expected in those markets over the next five years. For a conservative estimate of the A BlissfulD Travelers Coffee Page 13 of 45

number of Captive Consumers this represents, multiply the total number of venues in the year by 2,000. As an example, in the first year, D TravelersA Blissful Coffee is showing that there are a total of 582 venues at which we might position a Mobile Cafe. That would equate to a Captive Consumer potential of 1,164 million. Similarly, there are well over 64,500,000 commuters in the metropolitan area, as well as visitors, vacationers, and others. It can also be assumed that these commuters do not make only one purchase in a day, but in many cases, two and even three beverage purchases. The chart reflects college campuses, special events, hospital campuses, business establishments and various charitable organizations. A segment that is not reflected in the chart (since it would skew the chart so greatly) is the number of corporate campuses in the metropolitan area. There are over 4,436 corporate facilities that house more than 500 employees, giving us an additional 2,218,000 prospective customers, or total of 2,582 locations at which we could place a Mobile Cafe.

Market Analysis (Pie)

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Business Establishments School Campuses Trade shows/Special Events Government Offices/NGOs Others

Market Analysis 201201 201302 201403 201504 201605 Potential Customers Business EstablishmentSchool Campuses Business EstablishmentSchool Campuses Trade Shows/Special EventsCommuters Government Offices/NGOsGolf Course 8035 3981 4482 8350 8455

2588 7715 1599

8826 1677 1599

2788 177 1599

2788 1877 1599

8828 2077 1599

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Special EventsOthers 362 Total 369 376 384 100 Hospital Campuses

1043 100

1144 100

1245 100

1446 100

1547

392 2.01% 849100 858107 867115 877124 887133

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4.2 Target Market Segment Strategy ABDTC's target market is the mobile individual who has more money than time, and excellent taste in a choice of beverage, but no time to linger in a cafe. By locating the mobile caf high visibility areas in business establishments and campuses , this unique--and abundant--consumer will seek D TravelersA Blissful Coffee out and become a regular customers. To penetrate the target market for the Mobile Cafes, these units will do what they were designed to do. D TravelersA Blissful Coffee will take the cafe to the customer! By using the community support program DTC ABC is instituting, arrangements will be made to visit a college campus, or a corporate campus once or twice a month (Even visit these facilities for special games, tournaments, recruiting events, or corporate open houses). And, for every cup or baked goods sold, a portion is returned to the college campuses and business establishment. It becomes a tremendous, painless way for the institution to gain a financial reward while providing a pleasant and fulfilling benefit to their students or employees. 4.2.1 Market Needs The United StatesPhilippines is a very mobile society. With the introduction of the automobile, we became a nation that thrived on the further freedom of going where we wanted when we wanted. It has only gotten worse. There are over 250 million men, women and children in America, half of whom are too old, too young, or too poor to drive an automobile. Yet, there are more licensed vehicles in the country than people. aAnd that mobility has created a unique need in our society. Our market is made up of consumers who have busy schedules, a desire for quality, and disposable income. As much as they would like the opportunity to sit in an upscale coffee house and sip a uniquely blended coffee beverage and read the morning paper, they don't have the time. However, they still have the desire for the uniquely blended beverage as they hurry through their busy lives. 4.2.2 Market Trends Nearly tenwenty years ago, a trend towards more unique coffees began to develop in the PhilippinesU.S. There had always been specialty coffee stores, such as Gloria Jeans and others, but rich people began to buy espresso machines for their homes and offices, and people began to have coffee tastings. Then espresso bars began to appear and, inevitably, along came Starbucks ... the quintessential bastion of the upwardly mobile professional who wanted to take control over how their beverage would taste and smell.

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However, we have also become more rushed for time during that same period. Those same consumers who helped push Starbucks to $2.2 billion in global sales are now rushing kids to soccer schools and basketball games, running to the grocery and trying to get to work on time and back home in time for dinner ... or to get to the next soccer game. Yet, they still have the desire for that refreshing, specially blended coffee each morning. Lately, we've seen the introduction of beverage dispensers at convenience stores that spit out overly-sweet, poorly blended cappuccinos in flavors such as french vanilla or mocha, and consumers are paying as much as Php$603.00 for these sub-standard beverages. The market is primed for the introduction of a company that offers a superior quality, specially blended product in a convenient, drive-thru environment at a price that is competitive to the national coffee houses. 4.2.3 Market Growth According to industry statistics, the consumption of coffee and flavored coffee products is growing rapidly. According to reports, world consumption of coffee continues to increase. Experts predict that the level of consumption will follow population growth. Moreover, domestic consumption also increases by 2.25% per yearThe largest national brand for retail coffee outlets achieved $2.2 billion in sales in 2000 with 3,000 retail outlets. They are anticipating opening 7,000 more outlets in the next five years and increasing revenues to over $6 billion. . That is the coffee consumer market. The segment of that market we are targeting is the commuter and that number is increasing. In the metropolitan area, as with many metropolitan areas in the country, there is a migration away from the cities. It is estimated that there are well over 2.5 million commuters driving to and from work each day in our market. Statistically, at least 650% of those are coffee drinkers. That gives D TravelersA Blissful Coffee a significant daily target for its products. Those numbers are growing by 6% per year. 4.3 Industry Analysis The coffee industry has grown by tremendous amounts in our country over the past five years. The coffee industry has grown by tremendous amounts in our country over the past five years. Starbucks, the national leader, had revenues in fiscal 2000 of $2.2 billion. That is an increase of 32% over Fiscal 1999. Starbucks plans to increase revenues to over $6.6 billion from 10,000 retail outlets by 2005. Even general coffee sales have increased with national brands such as Nescafe, Great Taste, and Maxwell reporting higher sales and greater A BlissfulD Travelers Coffee Page 18 of 45

profits. 4.3.2 Distribution Patterns The cafe experience comes from the Italian origins of espresso. The customer comes in to a beautifully decorated facility, surrounded by wondrous aromas and finds himself involved in a sensory experience that, more often than not, masks an average product at a premium price. However, the proliferation of cafes in the Philippines proves the viability of the market. It is a duplication of the same delivery process as currently exists in Europe.

4.3.3 Competition and Buying Patterns There are four general competitors in D TravelersA Blissful Coffee's mobile market. They are the national specialty beverage chains, such as Starbucks or coffee houses -- or cafes -- with an established clientele and a quality product, fast food restaurants, and convenience stores. There is a dramatic distinction among the patrons of each of these outlets. Patrons to a Starbucks, or to one of the local cafes, are looking for the "experience" of the coffee house. They want the ability to "design" their coffee, smell the fresh pastry, listen to the soothing Italian music, and read the local paper or visit with an acquaintance. It is a relaxing, slow paced environment. Patrons of the fast food restaurants or the convenience stores are just the opposite. They have no time for idle chatter and are willing to over-pay for whatever beverage the machine can spit out, as long as it's quick. They pay for their gas and they are back on the road to work. Although they have the desire and good taste to know good from bad, time is more valuable to them. Competitors to the Mobile Cafes on campuses would include fast food restaurants - -assuming they are close enough to the consumer that they can get there and back in the minimal allotted time, vending machines, and company or school cafeterias. The consumers in this environment are looking for a a quick, convenient, fairly priced, quality refreshment that will allow them to purchase the product and return to work, class, or other activity. Competitors to the Mobile Cafes at events such as festivals and fairs would include all the other vendors who are licensed to sell refreshments. Attendees to such events expect to pay a premium price for a quality product. 4.3.4 Main Competitors A BlissfulD Travelers Coffee Page 19 of 45

When measuring head-to-head, direct competitors, we have found that there are none in the metropolitan area. D TravelersA Blissful Coffee will be the first double-sided, drive-thru coffee house in the metropolitan area. However, there is still significant competition from traditional coffee houses and other retailers. National Chains: Starbucks, the national leader, had revenues in fiscal year 2000 of P1.3 million. That is an increase of 32% over fiscal year 1999. Starbucks plans to increase revenues to over P1.8 million from 2000 retail outlets by 2010. Panera had revenues of $151 million from corporate owned stores and $350 million from franchised locations in fiscal year 2000. This fiscal year revenue was an increase in 28.9% on a per store basis versus fiscal year 1999. D TravelersA Blissful Coffee believes it has a significant competitive advantage over Starbucks and otherthese chains because of the following benefits:

Accessibility/Availability More Substantial Customer Service Community Benefit Mobility Selection Higher Product Quality

Local Cafes: The toughest competitor for D TravelersA Blissful Coffee is the established locally owned cafe. ABDTC knows the quality and pride that the local cafe has in the product purchase by their customers. Any local cafe has a customer base that is dedicated and highly educated. The quality of beverages served at an established cafe will surpass any of the regional or national chains. The competitive edge D TravelersA Blissful Coffee has on the local cafes is based on the attributes of:

Accessibility/Availability More Substantial Customer Service Community Benefit Mobility Selection Higher Product Quality Supply Discounts Mobile Cafe Page 20 of 45

A BlissfulD Travelers Coffee

Consistent Menu Community Benefit Quality Product

Fast Food and Convenience Stores: These are two industries where D TravelersA Blissful Coffee will experience a certain level of competition. The national fast food chains and national convenience store chains already serve coffee, soda, and some breakfast foods. The national fast food chains obviously know the benefits and value to customers of drive-thru. ABDTC knows that within the specialty coffee and tea market, the quality of the products sold will be much greater than what can currently be purchased at fast food and convenience stores. The addition of domestic soda sales for these stores is a large part of revenue. ABDTC knows the quality of our products, along with the addition of domestic soda, gives it a competitive edge over fast food and convenience stores. Other competition: A BlissfulD Travelers Coffee knows that once it has entered the market and established a presence, others will try to follow. However, ABDTC believes that the corporate missions and even the organizational design will be imitated, but never duplicated. ABDTC will constantly evaluate its products, locations, service, and corporate missions to ensure that it remains a leader in the specialty beverage industry. Strategy and Implementation Summary 5.0 Strategy and Implementation Summary D TravelersA Blissful Coffee will penetrate the commuter and captive consumer markets by deploying Mobile Cafes in the most logical and accessible locations. The Mobile Cafes are designed to handle two-sided traffic and dispense customer-designed, specially ordered cups of specialty beverages in less time than required for a visit to the locally owned cafe or one of the national chains. D TravelersABC has identified its market as busy, mobile people whose time is already at a premium, but desire a refreshing, high quality beverage or baked item while commuting to or from work or school. In addition to providing a quality product and an extensive menu of delicious items, to ensure customer awareness and loyalty, as well as positive public and media support, D TravelersABC wocould be donating up to 1.085% of revenue from each cup sold in individual Mobile Cafes to the charities of the customers' choice. 5.1 Strategy Pyramids A BlissfulD Travelers Coffee Page 21 of 45

A Blissful CoffeeD Travelers strategy is to show people that ABDTC has an excellent product, convenient accessibility, and with a community benefit. To execute on this strategy, ABDTC is placing the Mobile Cafes at easily accessible locations throughout the metropolitan area. ABDTC is pricing its product competitively and training the production staff to be among the best Baristas in the country. Then, through coupons and display ads at the locations, ABDTC will involve the customers in community support efforts by explaining that a portion of their purchase price will be donated to a charity of their choiceosing. In so doing, ABDTC has: 1. Provided a customer with a quality product at a competitive price. 2. Provided the customer with a more convenient method for obtaining their desired product. 3. Demonstrated how ABDTC appreciates their loyalty and patronage by donating money to their personal cause. 5.2 Value Proposition D Mobile CafesA Blissful Coffee facilities provide a substantial value proposition in that the customer does not have to find a parking place, exit the vehicle, stand in line to order, wait for the beverages ahead of him to be produced, pay a premium price for average product, find a place to sit, clean up the previous patron's mess, then enjoy their coffee ... assuming they have sufficient time to linger over the cup. ABCD Travelers concept is that the customer drives up, places the order, receives a high quality product at a competitive price, and drives away, having wasted little time in the process. D TravelersCustomer is also providing a significant community value byto patronizing ABDTC. For every purchase a customer makes from us, ABDTC will donate up to 1.085% of the sale to the local charity selected by the customer. 5.3 Competitive Edge D Travelers competitive edge is simple. DTC provides a high quality product at a competitive price in a Mobile Cafes environment that saves time. 5.4 Marketing Strategy First and foremost, D' TravelersA Blissful will be placing its Mobile Cafes in locations of very high visibility and great ease of access. They will be located on high traffic commuter routes and close to shopping facilities in order to catch customers going to or from work, or while they are out for A BlissfulD Travelers Coffee Page 22 of 45

lunch, or on a shopping expedition. The Mobile Cafes are very unique and eye-catching, which will be a branding feature of its own. D' TravelersABC will be implementing a low cost advertising/promotion campaign which could involve drive-time radio, but not much more. D' TravelersABC will rely on building relationships with schools, charities and corporations to provide significant free publicity because of its community support program. By giving charitable contributions to these institutions, they will get the word out to their students/faculty/employees/partners about ABDTC. Word of mouth has always proven to be the greatest advertising program a company can instill. In addition, the media will be more than willing to promote the charitable aspects of ABDTC and provide the opportunity for more exposure every time ABDTC writes a check to another organization.

5.4.1 Positioning Statements For busy, mobile people whose time is already at a premium, but desire a refreshing, high quality beverage or baked item while commuting to or from work or school as easy as ABC.. 5.4.2 Pricing Strategy D TravelersA Blissful Coffee pricing will be comparable to the competition, but with the value-added feature of immediate, mobile service and convenience. 5.4.3 Promotion Strategy The long-range goal is to gain enough visibility to leverage the product line into other area in Metro Manila and generate inquiries from potential inventors. To do that, D' TravelersA Blissful Coffee needs: Public relations services at more or less 2150,000 per month for the next year intended to generate awareness of editors and product information insertions, reviews, etc. It is anticipated that the school fundraising program will generate a fair amount of publicity on its own and will, perhaps, minimize- - or even eliminate -- the need for a publicist. Advertising at 10,000 per month concentrating on drive time radio. D' TravelersABC will experiment with different stations, keeping careful track of results. As with the school fundraising program, ABDTC expects the facilities and signage to be a substantial portion of our

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advertising. However, in the start-up phase, ABDTC needs to let people know where to look for the facilities. 5.4.4 Distribution Strategy D' TravelersA Blissful Coffee will locate Mobile facilities in high traffic areas of the city where it knows working commuters will be passing. D' TravelersABC will make arrangements for the Mobile Cafes to be at as many schools, businesses, and events as possible every year, so that new customers, those who come in from areas where ABDTC may not have a Drive-thru facility, can be reached and those who didn't have the time to stop off that morning at their favorite Travelers Coffee. 5.4.5 Marketing Programs Distinctive Logo: "Papo" is a very happy and conspicuous sun. The sun is one of infinite mental pictures. The sun touches every human being every day. Obviously, ABDTC wants to touch every customer every day. That is why the use of the sun lends itself to being the corporate identifier. Papo is already an awarding winning logo. Papo won in the New Artist Category of the 2001 Not Just Another Art Director's Club (NJAADC).

Distinctive Buildings: ABCDTC is using diner style buildings for its Mobile facilities. ABDTC has worked closely with the manufacturer to make the mobile distinctive, so that it is easy to recognize, and functional. The Fund-raising and Catering Trailer: The Mobile Cafe will be a key marketing tool. The exposure of these units will provide value that cannot be measured in peso. D' TravelersABC will negotiate visits with the Mobile Units at schools, hospitals, corporations A BlissfulD Travelers Coffee Page 24 of 45

and other entities. In the case of schools and certain corporations, a portion of all sales made while on their campus could go to a program of their choice. The organization would promote its presence to their constituency and encourage them to frequently buy from the Mobile Cafes establishments so that their charitable cause is nurtured. This will give those patrons an opportunity to taste the products and become a regular customer of the Mobile Cafes. The Mobile Cafes will also be appearing at community events such as fairs, festivals, and other charitable events. Advertising and Promotion: In the first two years, D' TravelersA Blissful Coffee plans to spend 1070,000 on advertising and promotion, with the programs beginning in January, after the opening of the first Mobile Cafes. This would not be considered a serious advertising budget for any business, but ABDTC feels the exposure will come from publicity and promotion, so most of the funds will be spent on a good publicist who will giveet the word of mouth advantage out about the charitable contribution program and how it works in conjunction with a particular establishmentthe website. ABDTC also believes that word-of-mouth advertising and free beverage coupons will be better ways to drive people to the first and second locations. In the thirdsecond year, D' TravelersABC is increasing the budget to 43200,000, since it will need to promote several locations, with particular emphasis on announcing these openings and all the other locations. ABDTC will continue to use publicity as a key component of the marketing program, since ABDTC could be contributing to local schools and charities. In the fourththird year, D TravelersABC will increase its advertising and promotion budget to 50890,000, with the majority of the advertising budget being spent on drive time radio. As in the previous years, ABDTC will get substantial publicity from the donation to local schools and charities. 5.5 Sales Strategy There will be several sales strategies put into place, including posting specials promos on high-profit items at the Mobile window. The Baristas will also hand out free drink coupons to those who have purchased a certain number of cups or something similar. ABDTC will also develop window sales techniques such as the Baristas asking if the customer would like a fresh-baked item with their coffee. 5.5.1 Sales Forecast In the first year, D' TravelersA Blissful Coffee anticipates having two Mobile Cafes locations in operation. The first location will open in the third monthJanuary of this plan and be fully operational beginning on the 31rdst week of January. The second Mobile Cafes will open two six A BlissfulD Travelers Coffee Page 25 of 45

months later. ABDTC is building in a certain amount of ramp-up for each facility while commuters become familiar with its presence. The Mobile Cafes will generate approximately P6, 254,2901,000.0,000 in revenue. In the second year, D TravelersABC will add two more Mobiles and, in the third year, DTC ABC will add an additional two Mobile facilities. The addition of these facilities will increase the revenue from a total of over P192, 425.282,500,000 in the second year and just over P3, 8417,557.6900,000 in the third. In addition to the Mobile Cafes, D Travelers will deploy two mobile units in the first quarter of the first fiscal year. DTC expects this mobile unit to generate P7, 500 monthly, at an average price of P70, which will generate gross revenues of approximately P6, 300,000.00 In the first quarter of the second fiscal year, D Travelers will deploy a third and fourth mobile unit. DTC expects all four mobile units to generate gross revenue of P15, 725,430.00 in the second year. In the third fiscal year, with an additional fifth and sixth mobile units deployed, TDP expects to see P31, 974,390.00 in gross revenue. DA Travelers Blissful Coffee is also showing revenue from the commerce portion of itsour website, where it will sell "A Blissful CoD Travelers Coffee" t-shirts, insulated coffee mugs, pre-packaged coffee beans, and other premium items. ABDTC is not expecting this to be a significant profit center, but it is an integral part of the marketing plan -- as a function of developing our brand and building product awareness. Total first year unit sales should reach revenues of P6, 254,290500.,000. The second year will see unit sales increase to a little over 9,471,1401,300,000, or P15, 725,430.00. The third year, with the addition of such a significant number of outlets, we will see unit sales increase to 16,248,960over 2,000,000, equating to gross sales revenue of P331,974800,390000.00.

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Sales Monthly

Sales Forecast 5.5.2 Sales Programs Corporate Tasting Events- ABDTC plans to host tasting events for customers on a quarterly basis. Each quarter, at the introduction of each season, ABDTC will be adjusting its menu to reflect the changes in the flavors served. Drink Coupons- At fundraising events for schools and corporate events, we will be giving away drink coupons as door prizes or awards. This encourages the person to come in for their free beverage and bring a friend or buy a baked item or a package of our premium coffee. The Mobile Cafes units will be distributing coupons for special menu items or new product introductions. Chamber of Commerce and Professional Memberships- Because of the need to sell the Mobile Cafe services, ABDTC will be an active participant in the Regional Chamber, local Chambers of Commerce, Foodservice Associations, and Specialty Beverage Associations. The exposure and education that these organizations provide is outstanding, but equally important are the contacts and opportunities made available for deploying a Mobile Cafecaf - -or even two -- at a special event. 5.6 Strategic Alliances D TravelersA Blissful has and will continue to depend heavily on our alliance with Nestle, Phils and locally produced coffee beans in Batangas and Benguet, as well as our alliances with the Mobile Cafe manufacturers and consumable products providers. However, we will always be looking A BlissfulD Travelers Coffee Page 27 of 45

for better quality products, more favorable pricing, or more timely delivery from other potential alliances. We also consider the schools, non-profit organizations, and even corporations who host one of our Mobile Cafes as a strategic alliances, since they are providing exposure to our products and we are providing them a financial benefit. 5.7 Milestones The Milestone table reflects critical dates for occupying headquarters, launching the first Mobile Cafes units. D TravelersA Blissful Coffee also defines our break-even month, our website launch and subsequent visitor interaction function, and other key markers that will help us measure our success in time and accomplishment. Milestones Milestones Milestone Ocular Visit Mobile Unit Setup Purchase Furniture & Fixture Purchase Machine & Equipment Purchase Tools & Equipment Hiring of Manpower Advertising and Promotional Activity Web site launching Management Summary 6.0 Management Summary D TravelersA Blissful Coffee is a relatively flat organization. Overhead for management will be kept to a minimum and all senior managers will be "hands-on" workers. There is no intention of having a top-heavy organization that drains profits and complicates decisions. At the zenith of this three-year plan, there will be three "Executive" positions: chief operating officer (General Manager for Operation), chief financial officer (Accounting/ Office-Administrator/Payroll), chief A BlissfulD Travelers Coffee Page 28 of 45 Start Date 119/3025/2 01108 1210/051/2 01108 120/120/20 1108 120/120/20 1108 120/1020/2 01108 120/155/20 1108 121/2115/2 00811 023/01/201 209 End Date 129/0130/2 01108 121/061/20 1108 121/155/20 08 121/155/20 1108 121/15/201 108 12/203/201 108 121/3115/2 01108 027/021/20 1209 Budget 10,000 1,7600,000.0 0 18500,00 0.00 4300,000.0 0 510,000.00 20,000 430,000.00 10,000

information officer / director of marketing (Sales and Marketing Personnel). There will be other mid-management positions, such as store managers for every Mobile units, and a facilities manager to oversee the maintenance and stocking of the Mobile Cafes, as well as overseeing the maintenance and replacement of equipment in the Mobile Cafes facilities.

6.1 Organizational Structure The organization will be a relatively flat one, since the majority of personnel are involved in production and there will be a relatively low headcount in management. There are three functioning groups within the company: Production, Sales and Marketing, and General and Administrative. For purposes of this plan -- and to show the details of adding senior level management - ABC -D Travelers has broken management down as a separate segment, but it is an integral part of the General and Administrative function. Production involves the Baristas, or Customer Service Specialists, who will be manning Mobile Cafes and blending the beverages for the customers. Sales and Marketing will handle the promotion and scheduling of the Mobile Cafes, as well as the Community Contribution program. General and Administrative manage the facilities, equipment, inventory, payroll, and other basic, operational processes. 6.2 Management Team Gaps D TravelersA Blissful Coffee knows that it is going to require several quality management team members over the next three years, beginning with a district manager for every four Mobile Units. This person will oversee the quality of product, the training of the Baristas, the inventory A BlissfulD Travelers Coffee Page 29 of 45

management, and customer satisfaction. Ideally, as D TravelersABC grows, it will be able to promote from within for this position. This individual will be responsible for the operation of theup to four Mobile units under his/her management. They will be required to visit between locations and possibly even join administrative personnel on training or marketing travel. Clearly, as the need arises, these individuals will ideally be selected from the Mobile Cafe team. By the beginning of the third year, D Travelers will hire three key senior managers. They are: a chief financial officer, a chief information officer, and a director of marketing. The role of each of these individuals will be discussed in subsequent sections of this plan. 6.3 Personnel Plan D TravelersABC expects the first year to be rather lean, since there will only be two locations and two mobile units -- none of which will be deployed for the entire year. The total headcount for the first year, including management, administrative support, and customer service (production), will be 12 with a total payroll of P1,000968,000.00. The second year, with the addition of two mobile units, D Travelers will add customer service personnel, as well as a store manager and some additional support staff at headquarters, including an Inventory Clerk, and administrative support. The headcount will increase in the second year to 21, with a payroll of 13,7600,000. The third year will see the most dramatic growth in headcount, due to the addition of two mobile units. In the third year, there will also be an increase of overhead cost over the previous year. Total payroll for the third year will be P24,500 891,2000.00. A significant increase in the chief financial officer, a chief information officer, and a director of marketing. There will also be a fifth and sixth store, and a corporate events sales executive. Total personnel will reach 27. The chief financial officer will be brought on to oversee the increase in numbers of retail outlets and to manage a dramatically more detailed P&L statement and to manage the Balance Sheet. The chief information officer will be brought in to help us with the deployment of a Point-of-Sale computerized cash register system that will make tracking and managing receipts and charitable contributions more robust. Ideally, this individual will have a large amount of point of sale and Internet experience. Specifically, how to tie in POS systems to the Internet and inventory controls. Also, knowledge in establishing technology guidelines for the company and franchisees in the future. This individual will also be added in fiscal year three.

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The director of marketing will be charged with managing the relationships with advertising agencies, public relations firms, the media, and our website.

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Personnel Personnel Plan 201209 OPERATION Mobile Cafe Team Barista Driver/Assistant Store Manager Subtotal MANAGEMENT General Manager Sales and Marketing Personnel Accounting/Office Administrator/Payroll Warehouse Inventory Clerk Subtotal Total Payroll Total People 720,000. 00 360,000. 00 216,000. 00 1,296,000. 00 300,000. 00 132,000. 00 132,000. 00 108,000. 00 672,000. 00 1,968,000. 00 12. 00 1,209,6 00.00 1,008,0 00.00 259,2 00.00 2,476,8 00.00 360,0 00.00 316,8 00.00 316,8 00.00 129,6 00.00 1,123,2 00.00 3,600,0 00.00 2 1.00 400.00 1,521 ,600.00 4,891 ,200.00 27.00 600.00 302, 600.00 369, 000.00 369, 1,555 ,200.00 1,512 ,000.00 302, 400.00 3,369 ,600.00 480, 201310 20114

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Financial Plan
7.0 Financial Plan The D Travelers Coffee's financial picture is quite promising. Since DTC is operating a cash business, the initial cost is significantly less than many start-ups these days. The process is labor intensive and DTC recognizes that a higher level of talent is required. The financial investment in its employees will be one of the greatest differentiators between it and DTC's competition. For the purpose of this pro-forma plan, the mobile cafe are financed. These items are capital expenditures and will be available for financing. There will be a minimum of inventory on hand so as to keep the product fresh and to take advantage of price drops, when and if they should occur. The D Travelers Coffee anticipates the initial combination of investments and long-term financing of P2,601,654.01 to carry it without the need for any additional equity or debt investment, beyond the purchase of equipment or facilities. This will mean growing a bit more slowly than might be otherwise possible, but it will be a solid, financially sound growth based on customer request and product demand. 7.1 Important Assumptions The financial plan depends on important assumptions, most of which are shown in the following table. The key underlying assumptions are: The D Travelers Coffee assumes a slow-growth economy, without major recession. The D Travelers Coffee assumes of course that there are no unforeseen changes in public health perceptions of its general products.

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The D Travelers Coffee assumes access to equity capital and financing sufficient to maintain its financial plan as shown in the tables. The Travelers Coffee will assume equal pricing for every unit of coffee and other beverages.

General Assumptions 2009 Plan Month Current Interest Rate Long-term Interest Rate Tax Rate Other 7.2 Key Financial Indicators The following chart shows changes in key financial indicators: sales, gross margin, operating expenses, collection days, and inventory turnover. The growth in sales exceeds 151.43% on the second year and 50.82% on the third year. DTC expects to keep gross margin above the 40% projected for the first year, but it doesn't anticipate anything higher than 41%, since our payroll expenses will increase substantially as it grows into new areas and faces new competition. The projections for inventory turnover show that DTC will maintain a relatively stable amount of inventory in its headquarters warehouse so that it has no less than two weeks of inventory on hand, but no more than three weeks, in order to keep products fresh. The only time it would consider holding larger stores of inventory is if there was some catastrophic event that could cause a dramatic rise in the price of its coffees or teas. Benchmarks 1 9.00% 10.00% 0.00% 0 2010 2 9.00% 10.00% 0.00% 0 2011 3 9.00% 10.00% 0.00% 0

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100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 2009 2010 2011 Inventory Turnover Operating Expenses Gross Margin Sales

7.3 Break-even Analysis To arrive at the average monthly fixed costs, The D Travelers Coffee calculated the fixed costs for the Mobile Cafes to be P234,941.67. Using the average price per unit, less the average cost per unit, divided into the fixed costs of operation, DTC concludes that we will need at least 7524.66 units per month to reach break-even at P526,726.20 per month.

Break-even Analysis

p e r U N
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Break-even Analysis Break-even Analysis Average Monthly Units Break-even Average Monthly Revenue Break-even Assumptions: Per-Unit Revenue Per-Unit Variable Cost Estimated Monthly Fixed Cost

Break-even Analysis Break-even Analysis Average Monthly Units Break-even Average Monthly Revenue Break-even Assumptions : Per-Unit Revenue Per-Unit Variable Cost Estimated Monthly Fixed Cost 70.00 41.78 234 ,941.67 7 ,524.66 526 ,726.20

7.4 Projected Profit and Loss The D Travelers Coffee is expecting some dramatic growth in the next three years, reaching P6,254,290.00 in sales and a 46.00% Gross Profit Margin by the end of the first year. Expenses during the first year will be roughly P3,553,031.66, leaving a Net After-tax loss of (P741,775.66). The total operating cost of 56.81% & which include commissions for sales efforts, the single largest expenditures in the first year expenses for rents, equipment leases, utilities, and the payroll burden for all employees. Sales increase by nearly 151% in the second year, due to the addition of two more Mobile units and two more Mobile Cafes, reaching a total of P15,725.430.00, with a Gross Profit Margin of 44.00%. Although operating expenses double in the second year, The D Travelers Coffee will be able to realize a Net After-tax profit of P192,425.28 or 1.83% of sales. In that same year, DTC will make charitable contributions of P190,951.65. The third year is when The D Travelers Coffee has the opportunity to have additional two units of Mobile Caf which will give them a total six units of mobile Cafe additional which will drive sales to P31,974,390.00 and, even with a 31% increase in operating expenses, help reach a Gross Profit Margin 41.00%. Several expenses take substantial jumps this year-donations increasing from P190,951.65 to P388,260.45--and DTC will be adding several key management team members. These increases, as well as those for increased equipment leases and rents, leaving a Net After-tax profit of P3,417,557.69, or 1114% of sales. Profit and Loss 2009 2010 2011 Page 36 of 45

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Pro Forma Profit and Loss Sales Direct Costs of Goods Gross Margin Gross Margin % Operating Expenses Sales and Marketing Expenses Advertising/Promotio n Donations Sales and Marketing and Other Expenses TOTAL SALES AND MARKETING EXPENSES General and Administrative Expenses Salaries and Wages Payroll Taxes Depreciation Rent Utilities Insurance Others TOTAL GENERAL AND 1,968,000. 00 688,800. 00 198,500. 00 180,000. 00 84,000. 00 60,000. 00 36,000. 00 3,215,300. 00 3,600,00 0.00 1,260,00 0.00 368,50 0.00 192,00 0.00 144,00 0.00 108,00 0.00 42,00 0.00 5,714,50 0.00 4,891, 200.00 1,711, 920.00 539,5 00.00 210,0 00.00 240,0 00.00 180,0 00.00 72,0 00.00 7,844, 620.00 6,254,290. 00 3,395,186. 00 2,859,104. 00 46% 15,725,43 0.00 8,873,63 5.50 6,851,79 4.50 44% 31,974, 390.00 18,842, 051.25 13,132, 338.75 41%

174,226. 65 75,944. 95 87,560. 06 337,731. 66

438,06 5.55 190,95 1.65 220,15 6.02 849,17 3.22

890,7 15.15 388,2 60.45 447,6 41.46 1,726, 617.06

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ADMINISTRATIVE EXPENSES Total Operating Expenses Profit Before Interest and Taxes Interest Expense Taxes Incurred Net Profit(Loss) Net Profit/Sales 7.5 Projected Cash Flow Cash flow will have to be carefully monitored, as in any business, but The D Travelers Coffee is also the beneficiary of operating a cash business. After the initial investment and start-up costs are covered, the business will become relatively self-sustaining. With the exception of seasonal dips, which DTC has attempted to account for, through changes in the menu items. Assuming an initial investment and financing of P1.001,654.00 and with an additional investment of 390,000 on the first year of the partners, The D Travelers Coffee anticipates no cash flow shortfalls for the first year or beyond. March and May are the greatest cash drains, since DTC will be experiencing the cost of second mobile unit start-up. Again, DTC sees heavier than normal drains of cash in December and January, as there will be certain accounts payable coming due. Cash Flow Pro Forma Cash Flow Cash Received Beginning Cash Balance Cash from Operations Cash Sales 30,000. 00 6,254,290. 3,22 4.34 15,725,43 Page 38 of 45 267,6 49.62 31,974, 2009 2010 2011 3,553,031. 66 (693,927 .66) 47,848. 00 (741,775 .66) (0. 12) 6,563,67 3.22 288,12 1.28 95,69 6.00 192,42 5.28 0 .01 9,571, 237.06 3,561, 101.69 143,5 44.00 3,417, 557.69 0.11

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Subtotal Cash from Operations Additional Cash Received Sales Tax, VAT, HST/GST Received New Current Borrowing New Other Liabilities (interest-free) New Long-term Liabilities Sales of Other Current Assets Sales of Long-term Assets New Investment Received Subtotal Cash Received TOTAL CASH RECEIVED Expenditures Expenditures from Operations Cash spending Bill Payments Subtotal Spent on Operations Additional Cash Spent Principal Repayment of Current Borrowing Other Liabilities Principal Repayment Long-term Liabilities Principal Repayment Purchase Other Current Assets

00 6,254,290. 00

0.00 15,725,43 0.00

390.00 31,974, 390.00

320,000. 00 390,000. 00 710,000. 00 6,964,290. 00

350,00 0.00 350,00 0.00 16,075,43 0.00

400,0 00.00 400,0 00.00 32,374, 390.00

3,395,186. 00 3,420,879. 66 6,816,065. 66

8,873,63 5.50 6,467,36 9.22 15,341,00 4.72

18,842, 051.25 9,504, 781.06 28,346, 832.31

160,000. 00 15,000. 00

320,00 0.00 50,00 0.00 Page 39 of 45

480,0 00.00 70,0 00.00

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Purchase Long-term Assets Subtotal Cash Spent TOTAL CASH EXPENDITURE Net Cash Flow Cash Balance 175,000. 00 6,991,065. 66 (26,775. 66) 3,224. 34

100,00 0.00 470,00 0.00 15,811,00 4.72 264,42 5.28 267,64 9.62

110,0 00.00 660,0 00.00 29,006, 832.31 3,367, 557.69 3,635, 207.31

7.6 Projected Balance Sheet The D Travelers Coffee's projected balance sheet shows an increase in net worth to just over 192,425.28 in 2010, at which point it expects to be making 11.83% after-tax profit on sales of P15,725,430.00 million. With the present financial projections, DTC expects to build a company with strong profit potential, and a solid balance sheet that will be asset heavy and flush with cash at the end of the third year. The D Travelers Coffee has no intention of paying out dividends before the end of the third year, using the excess cash for continued growth. Pro Forma Balance Sheet Assets Current Assets Cash Inventory Prepaid Rent Deposits Prepaid Insurance Other Current Assets Total Current Assets A BlissfulD Travelers Coffee 3,224. 34 210,000. 00 180,000. 00 84,000. 00 75,000. 00 71,154. 01 623,378. 35 267,6 49.62 360,0 00.00 65,0 00.00 30,0 00.00 60,0 00.00 11,6 54.01 794,3 03.63 Page 40 of 45 3,635 ,207.31 431, 000.00 70, 000.00 29, 000.00 40, 000.00 11, 154.01 4,216 ,361.32 2009 2010 2011

Non Current Asset Furniture & Fixtures Machines & Equipment Mobile Truck Less: Accumulated Depreciation Total Long-term Assets 85,000. 00 300,000. 00 1,600,000. 00 (198,500 .00) 1,786,500. 00 2,409,878. 35 116,5 00.00 330,0 00.00 3,200,0 00.00 (368,5 00.00) 3,278,0 00.00 4,072,3 03.63 159, 000.00 344, 000.00 4,800 ,000.00 (539 ,500.00) 4,763 ,500.00 8,979 ,861.32

Total Assets Liabilities and Capital Current Liabilities Accounts Payable Current Borrowing Other Current Liabilities Subtotal Current Liabilities Long-term Liabilities Total Liabilities Aleli Carreon, Capital Michelle dela Cruz, Capital Jeannilyn Paguirigan, Capital Total Capital Total Liabilities and Capital

320,000. 00 320,000. 00 1,440,000. 00 1,760,000. 00 216,626. 12 216,626. 12 216,626. 11 649,878. 35 2,409,878. 35

350,0 00.00 350,0 00.00 2,880,0 00.00 3,230,0 00.00 280,7 67.88 280,7 67.88 280,7 67.87 842,3 03.63 4,072,3 03.63

400, 000.00 400, 000.00 4,320 ,000.00 4,720 ,000.00 1,419 ,953.78 1,419 ,953.77 1,419 ,953.77 4,259 ,861.32 8,979 ,861.32

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Net Worth Capital STATEMENT Planned Investment Beginning 2009 Additional Net Loss End 2009 Income-2010 End 2010 Income-2011 Aleli Carreon, Capital 333,884. 67 130,000. 00 (247,258. 55) 216,626. 12 64,141. 76 280,767. 88 1,139,185. 90 1,419,953. 78

649,878. 35

842,3 03.63

4,259 ,861.32

Michelle dela Cruz, Capital 333,8 84.67 130,0 00.00 (247,2 58.55) 216,6 26.12 64,1 41.76 280,7 67.88 1,139,1 85.90 1,419,9 53.78

Jeannilyn Paguirigan, Capital TOTAL 333, 1,001,654. 884.66 00 130, 390,000. 000.00 00 (247, (741,775. 258.55) 65) 216, 649,878. 626.11 35 64, 192,425. 141.76 28 280, 842,303. 767.87 63 1,139 3,417,557. ,185.90 70 1,419 4,259,861. ,953.77 33

7.7 Business Ratios Standard business ratios are included in the following table. The ratios show a plan for balanced, healthy growth. The D Travelers Coffee's position within the industry is typical for a heavy growth startup company. Comparing the ratios in the third year with the industry, this pro-forma plan appears to be within an acceptable difference margin. Ratios Ratio Analysis Sales Growth Percent of Total Assets Inventory Prepaid Rent Deposits Prepaid Insurance A BlissfulD Travelers Coffee 2009 0.00% 8.71% 7.47% 3.49% 3.11% 2010 151.43% 8.84% 1.60% 0.74% 1.47% 2011 50.82% 4.80% 0.78% 0.32% 0.45% Page 42 of 45

Other Current Assets Total Current Assets Long-term Assets Total Assets Current Liabilities Long-term Liabilities Total Liabilities Net Worth Percent of Sales Sales Gross Margin Sales and Marketing Expenses General and Administrative Expenses Profit Before Interest and Taxes Main Ratios Current Quick Total Debt to Total Assets Additional Ratios Net Profit Margin Return on Equity Activity Ratios Inventory Turnover Payment Days Debt Ratios Debt to Net Worth Current Liab. to Liab. Liquidity Ratios Interest Coverage

2.95% 25.87% 74.13% 100.00% 13.28% 59.75% 73.03% 26.97% 100.00% 46.00% 5.40% 51.41% -11.10%

0.29% 19.51% 80.49% 100.00% 8.59% 70.72% 79.32% 20.68% 100.00% 44.00% 5.40% 36.34% 1.83%

0.12% 46.95% 53.05% 100.00% 4.45% 48.11% 52.56% 47.44% 100.00% 41.00% 5.40% 24.53% 11.14%

1.95 0.01 73.03% -11.86% -114.14%

2.27 0.76 79.32% 1.22% 22.85%

10.54 9.09 52.56% 10.69% 80.23%

17.41 172

31.14 96

47.64 63

2.71 18.18% ( 14.50)

3.83 10.84%

1.11 8.47%

3.01

24.81

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Additional Ratios Assets to Sales Current Debt/Total Assets Acid Test Sales/Net Worth 7.8 Exit Strategy There are three scenarios for the investors and management to recover their investment--two with significant returns on each dollar invested. Scenario One: The D Travelers Coffee becomes extremely successful and has requests from other communities for D Travelers Coffee operations to be opened there. This opens the door for franchising opportunity. When one looks at the wealth that has been created by the likes of McDonald's, Wendy's, Kentucky Fried Chicken, Burger King, and Taco Bell, the value of franchising a great idea cannot be dismissed. However, developing a franchise can be extremely costly, take years to develop, and be destroyed by one or two franchisees who fail to deliver the consistency or value on which the founding company had built its reputation. Scenario Two: The D Travelers Coffee chooses to become the Mobile Coffee version of Starbucks, obtaining several million pesos through an initial public or private offering that would allow the company to open twenty to thirty facilities per year in the region of the country, in both major and small metropolitan communities. This is the preferred Exit Strategy of the Management Team. The danger in this is that competitors would rise up and establish a foothold on a community before--or in the midst of--the arrival of The D Travelers Coffee, causing a potential for a drain on revenues and a dramatic increase in advertising expenditures to maintain market share. Knowing these risks--and planning for them--gives DTC the edge needed to make this scenario work. Scenario Three: By the third year, the growth and community support for The D Travelers Coffee will have made the news in more than just the metropolitan area. It can be assumed that competitors, such as Starbucks or Figaro, Seattless Best, will have seen the press and realized the value proposition in The D Travelers Coffee's business plan. This will make DTC an attractive target for buyout. The company could be purchased by a much larger competitive concern by the end of the third year. A BlissfulD Travelers Coffee Page 44 of 45 0.39 13.28% 0.01 9.62 0.26 8.59% 0.76 18.67 0.28 4.45% 9.09 7.51

Conclusion: Of the three scenarios, the management team prefers Scenario #2. The same numbers would relate to a public or private offering as are used in Scenario #3, but to make an offering available, there would be a dilution of shares that would provide additional shares for sale to the new investors. Assuming the capital acquisition described in this plan is completed, there will be 6 units of the company in the hands of investors

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