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Pai Sure 06FEB Final

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Taxi Co., Ltd

Taxi Co., Ltd.

EXECUTIVE SUMMARY   was initiated from the idea that people living in Bangkok prefer to get better  was Pai Sure Taxi  service from its public transportation. Hence, group of founders finally came up with this new  business which mainly focuses on providing new taxi service. The key business concept is the company will serve every customer request with a superior service and well-trained taxi drivers. Besides, new technology including Global Positioning System (GPS) and radio communications will equip with all of the vehicles in order to ensure the security of each individual passengers. The target customers normally will be the people who particularly concern about their  belongings and/or punctuality with middle to high income including women, businessmen, foreigners and tourists. Those people will gain benefits through company’s superior services. Another advantage of the company is that passengers can also make an advance booking for using its services via call center and online booking.

Taxi Co., Ltd.

EXECUTIVE SUMMARY   was initiated from the idea that people living in Bangkok prefer to get better  was Pai Sure Taxi  service from its public transportation. Hence, group of founders finally came up with this new  business which mainly focuses on providing new taxi service. The key business concept is the company will serve every customer request with a superior service and well-trained taxi drivers. Besides, new technology including Global Positioning System (GPS) and radio communications will equip with all of the vehicles in order to ensure the security of each individual passengers. The target customers normally will be the people who particularly concern about their  belongings and/or punctuality with middle to high income including women, businessmen, foreigners and tourists. Those people will gain benefits through company’s superior services. Another advantage of the company is that passengers can also make an advance booking for using its services via call center and online booking.

Taxi Co., Ltd. Director, has background in finance of various industries as she worked as a consultant at Deloitte Touche. Suchai  Noic  Noicha haya ya,, COO, COO, has has acad academ emic ic back backgr grou ound nd in libe libera rall arts arts and and has has 5-ye 5-year ar work work expe experi rien ence ce in cust custom omer er serv servic ice. e.  Pai Sure Taxi’s revenue is anticipated to begin in 2012 and projected to grow to 127  million in the next five years based on conservative assumptions assumptions about the market environment. environment. This business  plan will yield  a Net Present Value (NPV) of 137  million at a discount rate of 15%, and will have a  projected Int ernal Rate of Return (IRR) of 61.277 %. The payback period is about three years and nine month. Pai Sur Sur e Taxi is seeking an equity funding of 15 million in 2012. In return f or this investment,

the investor would receive an equity stake of 50% and two seats on the Board of Directors. This investment fund will be recovered within three years and four months for the dividend stream and yield an NPV of 106 million at the discount rate of 15%. The IRR for the investor will be 62.93%.   is an exciting and potentially very lucrative investment opportunity and the Pai Sure Taxi  management management team looks forward to discussions with the investor.

Taxi Co., Ltd.

TABLE OF CONTENTS

THE COMPANY AND THE PRODUCT .................................................................................5 Company History ...............................................................................................................5 The Product .....................................................................Error! Bookmark not defined.  Resource-Based Analysis ................................................. Error! Bookmark not defined. MARKETING PLAN.................................................................................................................7  Market size and growth .....................................................................................................7 Underlying Trends .............................................................................................................8 Current Rivals....................................................................................................................8  Potential Rivals and Substitutes ........................................................................................8 Our Strategic Advantages ......................................................................................................8 Strategic Options and Alternative Chosen .............................................................................9 Target Market .........................................................................................................................9 Marketing Strategy...............................................................................................................10 OPERATIONAL PLAN...........................................................................................................12 Company Structure and Organization Chart ........................................................................12 Key Personnel ......................................................................................................................12 Production and Operations...................................................................................................13 Research and Development ..................................................................................................14 Risk Reduction Strategies ....................................................................................................15 Exit and Harvest Strategies ..................................................................................................15 FINANCIAL PLAN .................................................................................................................15 Underlying Assumptions......................................................................................................15 Pro-Forma Financial Statements (Expected Case) ...............................................................16

Taxi Co., Ltd.

THE COMPANY AND THE PRODUCT Company H istory Taxi passengers are facing serious problems: taxi drivers refuse to drop them to any particular places especially in raining and/or rush hour. Besides, this problem arises from the fear of both passengers and taxi drivers, due to increase in crime rate. Consequently, his firm is founded in order to address these problems. Pai Sure Taxi ’s first goal had been to provide quality transportation services non-existent in Bangkok at

the time and also to maintain such a high standard of quality and service over the years. Itwill become the  pioneering taxi company to implement the strict use of taximeters, Global Positioning System (GPS) system, in-car camera and radio communications on air-conditioned vehicles. Safety glass will be attached between the drivers and passengers in order to guarantee the security for both sides. Also, several service stations will set up in Bangkok to support daily operations of such vehicles. Moreover, the company plans to expand its operation into other big cities in Thailand including Pattaya, HuaHin, Chiang Mai, Phuket and Nakorn Ratchasima. Pai Sure Taxi  ’s mission is to achieve customer satisfaction and to build and defend the first position as

Taxi Co., Ltd. the taxi is, the distance to each destination and the duration for getting to the destination. Moreover, the DriveCam is installed to monitor the driver and passenger in case if any unethical act or crime happened in the taxi and for company’s quality control of the taxi drivers. These technologies incorporated in the taxi also helpful for tracking Lost and Found service if passengers forget their belongings in the taxi later on. Due to variety term of payments available for customers who do not want to carry too much cash with them, the company also offers credit card  payment apart from normal cash payment to its customers.   provides its customers with reliable, more safety, availability, on-time, and superior taxi Pai Sure Taxi  service. Since there is an issue regarding the increased in taxi crime rate, taxi drivers and passengers are scared at each other, and sometimes taxi drivers refuse to go to certain destinations, this product is designed for customers who concerns about safety and availability for taxi service. The service also covers booking service through call center, internet, and mobile application booking. Also, noted that this booking service will be running for 24 hours. To create brand identity of the product, Pai Sure Taxi  is designed to be unique in its appearance such that there will be Pai Sure logo with sign built on top of the

taxi. To protect this technical resource,

Taxi Co., Ltd. Human Resources Technical Resources

employees to work as a team and have service mind and honest that will contribute to the entrepreneur culture and quality of organizational resources.  integrates the existing technology such as computer network (communication and information Pai Sure Taxi  system), EDC and GPS to provide the superior and safety service.

MARKETING PLAN M arket Size and Growth The market for Pai Sure Taxi  consists of 3 main groups of stakeholder which are taxi owner who already owned taxi vehicles and provided taxi service to customers, taxi driver who already registered as a taxi driver and is leasing taxi to drive, and passenger who is normal commuters that uses taxi service. Pai Sure   plans to use both push marketing –  to taxi owner and taxi driver as well as pull marketing –  to passenger. Taxi Owner M arket Currently, there are approximately about 91 taxi companies in Thailand. Of these, 21 are licensed taxi service companies1 around Bangkok and suburban areas. Those licensed taxi companies are our primary targets to  partner with when introducing our premium-safety taxi service. Moreover, the number of registered vehicle for urban taxi in Bangkok as of December 2010, according to

Taxi Co., Ltd. Underlying

1,995,487

Earning 15,000 THB or more per month

Trends

People are using more public transportation due to the following factors: 1. Oil price has been increasing. It is believed that using public transportation is a more economical way of transportation. Consequently the number of people using their own private car has also been decreasing. 2. The extent of sky-train and metro rail line massively increases the number of commuters. Moreover, taxi is a way to connect passengers from the stations to the desired destinations. 3. With the increasing trend in sedan purchase, the number of parking spaces has been decreased and was  perceived as insufficient. Ironically, many people tend to park their cars at home or big parking spot provided at the sky-train or metro station and use public transportation. 4. The standard of living has improved. As income increases, the number of people using taxi, among people who previously preferred cheaper means of public transportation has increased. For further investigation on trend of firm’s business environment, please refer to exhibit 3 and 4 for SEEDTIP and Five-Force Analysis.

Taxi Co., Ltd.

Strategic Options and Alternative Chosen Al ternative Business M odels Strategic Options

1.Acquire established taxi corporation

Advantages    

2. Joint venture with established taxi corporation

   

3.Lease new car

 

Quick market entry Relatively low capital investment Better knowledge about the industry Immediate acquisition of previously owned license Quick market entry Moderate capital investment Better knowledge about the industry Strengthen competitive advantage of each firm Easy to modify with intended equipment Fully control of finance and policy

Disadvantages 





    

Required some capital for business development Harder to modify with intended equipment Required some capital for business development Conflict of interest among TMT Partial control of finance and policy Require high capital investment High financial risk Management ignorance

Bu siness M odel Chosen  aims to provide safe and reliable taxi service in Bangkok with future expansion into other Pai Sure Taxi  major cities in Thailand. The company decides to operate by joint venture with established taxi corporation. To deliver excellent service, Pai Sure Taxi  employs in-house training and accreditation. This will ensure our superior

Taxi Co., Ltd.  belonging and/or punctuality. The company targets passenger with middle to high income (social economic status B to A). The secondary target is families with kids, businessmen, foreigners and tourists.

M arketing Strategy Product Design Strategy As previously discussed, Pai Sure   provides safety taxi service to taxi owners who want to improve service and charge more from safety accreditation, taxi drivers who want better  driving experiences from training, and

customers who want to travel with safe and reliable taxi. Pricing Strategy Due to the superior service offered to customers by Pai Sure  , the company selects to use differentiation strategy for its market positioning. Thus, the company will command price premium based on additional quality of services it provides. The startup taxi-meter price will be 60 baht and will increase relative to the distance to destination as follows; Distance in kilometers

Price in Thai baht (THB)

Introductory Price in Thai baht (THB)

Taxi Co., Ltd. 

Lower initial price will generate market base for repeat service purchase as well as referral (word-ofmouth) sales.

Promotion Strategy During the first year of launch, Pai Sure    will focus its marketing activities to potential customers in Bangkok and surrounding suburban areas. 5% of sales will be allocated to marketing budget which is used to create awareness among potential customers. Additional profit will also come from special placement advertising at the back of driver’s seats. Marketing activities are listed below; Promotional activity Advertising





Word-of-mouth and celebrity endorsements Stealth marketing Public Relations



 

Details Persuasive TV Commercial on prime time to persuade and induce customers for trial service  purchase. The claim will be ‘How much your life or that of your loved ones worth when travelling with unsafe taxi? Pai Sure   provides you with a reliable and safe riding experience.’ Advertorial in men and women lifestyle magazine on Pai Sure   service of what it is, how to get the service and what to look for Pai Sure   will be provided in the content. Famous young women celebrity endorsement to ensure the quality claims of the reliable and safety of the taxi. Word-of-mouth will be followed either from endorsement or from friends who have tried this new service. Pai Sure Taxi  cab will show up in famous local sit-com TV program. Free publicity by sending useful article regarding tips on self-defense when riding with perilous taxi driver. Also, when get accredited, the company could get free publicity by having management team

Taxi Co., Ltd.

Operational Plan Company Structur e and Ownership  Pai Sure’s Organizational Chart  BOARD OF DIRECTORS

Panithan A. CEO

Nipaphan N.

Tanyatip K.

Kantika A.

Suchai N.

CFO

CMO

R&D

COO

Taxi Co., Ltd. and had professional work in financial and risk management for Siam Cement Group (SCG) that provides a wealth of experience in new venture business structuring and planning, particularly in financial issues. Tanyatip Kharuhayothin, Chief Marketing Officer (CMO), is mainly responsible for developing and

implementing marketing strategies of the company. She will interact with target groups - taxi owners, taxi drivers, and customers to gain insights on their service preferences and adjust the service according to their demands. Tanyatip earned her bachelor degree in Communication Management from Chulalongkorn University and had extensive work experience in Public Relations at Hill & Knowlton Thailand. Suchai Noichaya, Chief Operating Officer (COO), is responsible for production control, supply relations

and human resources. He monitors and enhances the quality of vehicles and human resources to meet the standard of Pai Sure Taxi . He is also responsible for contacting and negotiating with suppliers. His academic background is in liberal arts and his work experience is in customer service. Kantika Angsutornrangsi, R&D Director, is primary responsible for conducting research, developing

existing and new products and establishing the products in potential geographical markets. Kantika earned her

Taxi Co., Ltd. Production Plan   will begin installing equipment in taxi cabs in April 2012 and train the first set of taxi Pai Sure Taxi  drivers in June 2012. At the end of the training session, taxi drivers who pass the test will receive a certificate and will be required to take 1-day brush-up course every year. Other Aspects of the Production Plans

Location: Pai Sure Taxi   head office will be located near On-Nuch area. The size of the office is

approximately 600 square meters. In addition to the office, there is also a garage area in which up to 40 vehicles can  be parked. It gives advantage to service near the airport. This parking area has proved to be sufficient as most of Pai Sure Taxi cabs are still kept for maintenance at the taxi owner’s garage.

Labor: Pai Sure Taxi   relies on the qualified taxi drivers. Effective training program is developed to

achieve the objective. 1,000 taxi drivers will be needed to cover 9-hour shift a day. The training includes 1-day driving training and 1-day customer service training, with brush-up course once every year. Various benefits for taxi drivers include food at stop areas, recreational field, New Year Party and health benefits.

Taxi Co., Ltd.

Future Geographic M arkets After Pai Sure Taxi  has been well-established in Bangkok and suburban areas, the company expects to expand its service into other major districts/cities in Thailand. The company focuses on the areas which projects high demand of taxi service such as tourist and business district/cities, and highly populated cities. The target district/cities are Pattaya, HuaHin, Chiang Mai, Phuket, and Nakorn Ratchasima. The market expansion can be achieved by joint venture. The table below shows geographical expansion plans. Districts/Cities

Pattaya HuaHin

2014

2015

2016

Seek partner

2017

Joint venture

Seek partner

Chiang Mai Phuket  Nakorn Ratchasima

2018

Joint venture

Seek partner

Joint venture

Seek partner

Joint venture

Seek partner

Risk Reduction Strategy Risks Perceived 1. Licensed taxi owners and taxi drivers must incur switching cost from renovating their cabs to align with

Pro-acti ve Risks Strategies Engaging long term contracts  –   at least 5 years with licensed taxi owners and taxi drivers. Furthermore, Pai Sure    is seeking the

Taxi Co., Ltd. Income Statement (000s) 

Pai Sure Taxi

(Most Likely Scenario  ) 

 Year 0  Year of Operation

2012  July

Price/unit (net of discounts)  Units Sold (000s) ( see Sales Proj ections sheet)  Sensitivity Analysis Sales Deflator (e.g. -15%)  TOTAL SALES (THB000s) Unit Direct Cost (see COGS sheet)  Sensitivity Analysis CGS Inflator (e.g. +10%) COST OF GOODS SOLD % of Total Sales GROSS PROFIT % Gross Margin

Nov

Dec

Jan

Feb

Mar

Apr

May

June

Total

 

2015

2016

Total

Total

Total

Total

16.13  avg. 4212

17 4739

17 5449

Year 4

17 6397

17 7345

16.50 351

16.50 351

16.50 351

16.50 351

16.50 351

16.50 351

16.50 351

16.50 351

16.50 351

16.50 351

16.50 351

4,212

5,792

5,792

5,792

5,792

5,792

5,792

5,792

5,792

5,792

5,792

5,792

67,919

10.68

10.62

10.59

10.56

10.55

10.53

10.52

10.51

10.50

10.49

10.48

10.48

10.48

3,748 89% 464 11%

3,728 64% 2,064 36%

3,716 64% 2,075 36%

3,708 64% 2,083 36%

3,702 64% 2,090 36%

3,697 64% 2,095 36%

3,692 64% 2,099 36%

3,689 64% 2,103 36%

3,685 64% 2,106 36%

3,682 64% 2,109 36%

3,680 64% 2,112 36%

3,677 63% 2,114 37%

44,404 65% 2 3,515 35%

49,469 60% 32,626 40%

56,639 1 37,770 0

66,281 1 44,546 0

75,909 1 51,337 0

200 444 461 700 2 1,807 43%

0 523 464 700 3 1,690 29%

0 523 464 700 5 1,692 29%

0 523 464 700 7 1,693 29%

0 523 464 700 8 1,695 29%

0 523 464 700 10 1,697 29%

0 523 464 700 11 1,698 29%

0 523 464 700 13 1,700 29%

0 523 464 700 15 1,701 29%

0 523 464 700 16 1,703 29%

0 523 464 700 18 1,705 29%

0 523 464 700 20 1,706 29%

200 6,198 5,562 8,400 127 20,487 30%

2,945 5,898 8,400 372 17,615 21%

3,215 5,668 5,600 220 14,703 0

3,392 6,065 6,533 314 16,304 0

3,619 6,576 7,467 413 18,075 0

-1,343

374

384

390

395

398

401

403

405

406

407

408

3,028

15,011

23,067

28,242

33,262

119 752.19 -633

145 517 -371

173 299 -126

232 82 150

14,378 3,307

22,696 5,220

28,116 6,467

33,413 7,685

82,095

94,409

110,828

127,246

10

10

10

10

0% 

 Mnth 0.1%  0.6% 

23% 

0.00 89.11 -89

1.59 87.60 -86

1.94 86.09 -84

2.34 84.58 -82

2.74 83.07 -80

3.15 81.56 -78

3.56 80.05 -76

3.98 78.54 -75

4.40 77.03 -73

4.82 75.52 -71

5.24 74.01 -69

5.67 72.50 -67

Mnth  39 0.1%  969.69 0.6%  -930

-1,432 0

288 66

299 69

308 71

314 72

320 74

325 75

329 76

332 76

335 77

338 78

341 78

2,098 812 23% 

-1,432 -34%

221 4%

231 4%

237 4%

242 4%

246 4%

250 4%

253 4%

256 4%

258 4%

261 4%

263 5%

1,286 2%

11,071 13%

17,476 0

21,650 0

25,728 0

10

10

10

10

10

10

10

10

10

10

10

10

120

120

0

0

0

-1,432 -1,422 0 -1422

-1,422 -1,190 111 -1301

-1,301 -1,061 115 -1176

-1,176 -929 119 -1047

-1,047 -795 121 -916

-916 -660 123 -783

-783 -523 125 -648

-648 -385 127 -512

-512 -246 128 -374

-374 -106 129 -235

-235 36 130 -94

-94 178 131 47

-1,432 178 1,359 47

47 6,169 5,535 5702

5,702 16,796 8,738 14440

14,440 28,144 10,825 25265

25,265 41,515 12,864 38129

GRANT INCOME RECEIVED Retained Earnings (opening)  Available for Distribution Dividends Paid RETAINED EARNINGS (CLOSING)

Oct

Ye ar3

2014

0% 

INCOME BEFORE INTEREST & TAXES

INCOME BEFORE TAXES  Taxes on income (Zero if negative Income Deduct accumulated losses if applicable) NET INCOME % of Total Sales

Sept

Ye ar 2

2013

12.00 351

OPERATING EXPENSES Initial setup costs (expensed) Sales and Marketing General and Administrative Depreciation of P&E Depreciation of R&D & IPP  TOTAL OPERATING EXPENSES % of Total Sales

Interest income Interest expense NET INTEREST INCOME

Aug

Year 1

COMMERCIAL IN CONFIDENCE

16

 

 

Taxi Co., Ltd. Cashflow Statement (000s)

Pai Sure Taxi  Year of Operation 0 CASH INFLOW FROM OPERATIONS Sales Revenue ($000s) Plus: Accounts Receivable opening balance Less: Accoun ts Receivable endin g balance CASH INFLOW FROM OPERATIONS CASH OUTFLOW FROM OPERATIONS SETUP COSTS Cost of Goods Sold Plus: Accounts Payable opening balance Less: Accounts Payable ending balance CASH PURCHASES

Sales & Marketing Expenses General & Administrative Exp Research & Development Intellectual Property Protection  Taxes payable Net increase in Inventory  Net increase in Equipment CASH EXPENSE DISBURSEMENTS NET OPERATING CASH FLOWS

July

50%

Sept

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

June

T otal

5792 176 241 5726

5792 241 241 5792

5792 241 241 5792

5792 241 241 5792

5792 241 241 5792

5792 241 241 5792

5792 241 241 5792

5792 241 241 5792

5792 241 241 5792

5792 241 241 5792

5792 241 241 5792

67919 0 241 67677

200 3748 0 156 3592

0 3728 156 155 3729

0 3716 155 155 3717

0 3708 155 155 3709

0 3702 155 154 3702

0 3697 154 154 3697

0 3692 154 154 3693

0 3689 154 154 3689

0 3685 154 154 3685

0 3682 154 153 3682

0 3680 153 153 3680

0 3677 153 153 3677

200 44404 0 153 44251

444 461 97 0 0 0 42000 43003 -42758

523 464 98 0 66 0 0 1151 846

523 464 98 0 69 0 0 1154 921

523 464 98 0 71 0 0 1155 928

523 464 98 0 72 0 0 1157 932

523 464 98 0 74 0 0 1158 936

523 464 98 0 75 0 0 1159 940

523 464 98 0 76 0 0 1160 943

523 464 98 0 76 0 0 1161 945

523 464 98 0 77 0 0 1162 947

523 464 98 0 78 0 0 1163 949

523 464 98 0 78 0 0 1163 951

6198 5562 1 174 0 812 0 42000 55746 -32519

0 10 30,000 15,000 45010

2 10 0 0 12

2 10 0 0 12

2 10 0 0 12

3 10 0 0 13

3 10 0 0 13

4 10 0 0 14

4 10 0 0 14

4 10 0 0 14

5 10 0 0 15

5 10 0 0 15

6 10 0 0 16

89 250 0 0 339 44671

88 250 0 111 448 -437

86 250 0 115 451 -439

85 250 0 119 453 -441

83 250 0 121 454 -441

82 250 0 123 455 -442

80 250 0 125 455 -441

79 250 0 127 455 -441

77 250 0 128 455 -441

76 250 0 129 455 -440

74 250 0 130 454 -439

1913 0 1913

409 1913 2323

482 2323 2804

487 2804 3291

491 3291 3782

495 3782 4277

498 4277 4775

501 4775 5277

505 5277 5781

507 5781 6289

510 6289 6799

4%

0%

Aug

4212 0 176 4037

4%

CASH INFLOW FROM FINANCING Interest earned Grants Received Equity funding Proceeds from Debt funding CASH INFLOW FROM FINANCING CASH OUTFLOW FROM FINANCING Interest payable Debt retirement Equity Buy-back Cash Dividends CASH OUTFLOW FROM FINANCING NET FINANCING CASH FLOWS

(Most Likely Scenario)   0

NET CASH FLOW OPENING CASH BALANCES ENDING CASH BALANCES

COMMERCIAL IN CONFIDENCE

17

Year 1

Year 2

Year3

Ye ar 4

2013 Total

2014 T otal

2015 Total

2016 Total

82095 241   285 82051

94409 285 1026 93668

110828 1026 1197 110657

127246 1197 1368 127075

0 49469 153   171 49451

0 56639 171 615 56195

0 66281 615 715 66181

0 75909 715 816 75809

2945 5898 1258 0 3307   0 0 13407 19193

3215 5668 1356 0 5220 0 8400 23859 13613

3392 6065 1436 0 6467 0 8400 25760 18716

3619 6576 1519 0 7685 0 8400 27799 23467

39 120 30000 15000 45159

119 120 0 0 239

145 0 0 0 145

173 0 0 0 173

232 0 0 0 232

73 250 0 131 454 -438

970 3000 0 1359 5329 39831

752 3000 0 5535 9288 -9049

517 3000 0 8738 12254 -12109

299 3000 0 10825 14124 -13951

82 3000 0 12864 15945 -15713

513 6799 7312

7312 0 7312

10144 7312 17456

1504 17456 18960

4765 18960 23725

7754 23725 31479

4%

4%

0

Taxi Co., Ltd.

Balance Sheet (000s)

Pai Sure Taxi  Year of Operation 0  ASSETS CURRENT ASSETS CASH & MARKETABLE SECURITIES  A/R Opening Balance  A/R Closing Balance  ACCOUNTS RECEIVABLES

(Most Likely Scenario)   0

July

Aug

Sept

Oct

N ov

Dec

Jan

Feb

Mar

Apr

May

June

Total

Year 1

Year 2

Year3

Ye ar 4

2013 Total

2014 Total

2015 Total

2016 Total

1913 0 176 176

2323 176 241 241

2804 241 241 241

3291 241 241 241

3782 241 241 241

4277 241 241 241

4775 241 241 241

5277 241 241 241

5781 241 241 241

6289 241 241 241

6799 241 241 241

7312 241 241 241

7312 241 241 241

17456 285 285 285

18960 855 1026 1026

23725 1026 1197 1197

31479 1197 1368 1368

0 2089

0 2564

0 3046

0 3533

0 4024

0 4518

0 5017

0 5518

0 6023

0 6530

0 7040

0 7553

0 7553

0 17741

0 19986

0 24923

0 32847

42000 700 41300

42000 1400 40600

42000 2100 39900

42000 2800 39200

42000 3500 38500

42000 4200 37800

42000 4900 37100

42000 5600 36400

42000 6300 35700

42000 7000 35000

42000 7700 34300

42000 8400 33600

42000 8400 33600

42000 16800 25200

50400 22400 28000

58800 28933 29867

67200 36400 30800

97 2 95

195 5 190

293 10 283

391 16 375

489 24 464

587 34 552

684 46 639

782 59 724

880 73 807

978 90 889

1076 108 969

1174 127 1047

1174 127 1047

2432 500 1932

3788 719 3069

5224 1033 4191

6743 1446 5297

43484

43354

43229

43107

42988

42871

42756

42642

42530

42419

42309

42200

42200

44874

51055

58980

68944

0 156 156 0 14750 14906

0 155 155 0 14500 14655

0 155 155 0 14250 14405

0 155 155 0 14000 14155

0 154 154 0 13750 13904

0 154 154 0 13500 13654

0 154 154 0 13250 13404

0 154 154 0 13000 13154

0 154 154 0 12750 12904

0 153 153 0 12500 12653

0 153 153 0 12250 12403

0 153 153 0 12000 12153

0 153 153 0 12000 12153

OWNERS' EQUITY  Common Stock Retained Earnings  TOTAL OWNER'S EQUITY

30000 -1422 28578

30000 - 1301 28699

30000 - 1176 28824

30000 - 1047 28953

30000 -916 29084

30000 -783 29217

30000 -648 29352

30000 -512 29488

30000 -374 29626

30000 -235 29765

30000 -94 29906

30000 47 30047

30000 47 30047

30000 5702 35702

30000 14440 44440

30000 25265 55265

30000 38129 68129

 TOTAL LIABILITIES & EQUITY

43484

43354

43229

43107

42988

42871

42756

42642

42530

42419

42309

42200

42200

44874

51055

58980

68944

4%

INVENTORY (% of Cost of Goods Sold)  TOTAL CURRENT ASSETS PLANT AND EQUIPMENT Less: (Accum. Depr) NET PLANT AND EQUIPMENT R&D AND INTELLECT. PROP. Less: (Accum. Depr) NET INTANGIBLE ASSETS  TOTAL ASSETS LIABILITIES CURRENT LIABILITIES Short term Debt  Accounts Payable  TOTAL CURRENT LIABILITIES Shareholders Loans Long Term Debt  TOTAL LIABILITIES

4%

COMMERCIAL IN CONFIDENCE

18



0

 

0 171 171 0 9000 9171

0 615 615 0 6000 6615

0 715 715 0 3000 3715

0 816 816 0 0 816

Taxi Co., Ltd.

Summary of Financial Results (M ost L ikely Case Scenario)

2012

2013

2014

2015

Unit 000s baht 2016

67,919

82,095

94,409

110,828

127,246

EBIT  Net Income

3,028 1,286

15,011 11,071

23,067 17,476

28,242 21,650

33,262 25,728

Cash Balance

7,312

17,456

18,960

23,725

31,479

Sales

The Internal Rate of Return (IRR), calculated from the forecasted free cash flow and the end of 2016 (year 5) valuation of the company (P/E =10) is 61.277%. The Net Present Value (NPV) discounted at 15% is 137 million  baht with the payback period of 3 years and 9 months.

Sour ces and U ses of Funds   has already raised 50 million baht and is seeking for additional 550 million baht from 2 Pai Sure Taxi   parts, which are 50% from equity and the other 50% from long-term loan. These funds will be used for supporting the investment in training, service facilities, marketing efforts, working capitals, and R&D of the service system.

Taxi Co., Ltd. Summary of Financial Resul ts (Worst Case Scenar io)

2012

2013

2014

2015

Unit 000s baht 2016

Sales

67,568

78,185

89,913

105,550

121,187

EBIT

2,695

11,108

18,595

22,995

27,245

951

8,058

14,013

17,576

21,045

6,978

15,631

15,441

18,180

23,603

 Net Income Cash Balance

The Internal Rate of Return (IRR) Calculated from the projected Free Cash Flow streams and the end of 2016 valuation of the company is 53.692%. The Net Present Value (NPV) discounted at 15% is 104 million and  payback period is 4 years and 4 months. (For more detail on Pro-forma Statements please see appendix B, C and D)

Proposal to I nvestor

  

Pai Sure Taxi is seeking from investors: The total fund of equity capital; Familiarity with industry (preferable); and Harmonious relationship (personality fit)

Investors will receive from Pai Sure Taxi     

50% equity Two seats of the Board from the total seats of four Dividend payment Performance contract with management team

Taxi Co., Ltd.

Appendices Exhibit 1: Background analysis (TERMS) Time

Emotional

Add

Increase

Decrease

Delete

Save waiting time for customers due to on time service & saved time to find another taxi Pleasure from riding in a unique & safe taxi service

Increased customers’ time to do their other  businesses

Time waiting for taxi to arrive when ordered

Time to find another taxi when get refused to go to  particular destinations in rush hour Anger when get refused from taxi driver to go to desired destination

Risk

Risk of customer ignorance of the product

Monetary

Cost of superior service and taxi cab

Situation

Allow customers to get to their destinations safe and sound

More comfortable ride Fear of taxi crime, taxi drivers, on a safe taxi and more  passengers, and fear of refusing to convenient for go to particular destination customers who in hurry Risk of rivalry Risk of taxi crime rate & risk of introducing similar getting bad/ unpunctual drivers as service or substitutes to well as bad/unpunctual customers customers Increased cost of Cheaper taxi service due to service compared to differentiate customer service regular taxi service Increase opportunity to Situation where drivers rob find forgotten  passengers or passengers threaten  belongings through lost drivers and found service

Risk of taxi refused customers to go to  particular destination. Decrease opportunity cost, which can translate into monetary cost, such as missing business Inability to catch a taxi in rush hour or get refused by drivers

Exhibit 2: Market Survey The majority of the answer has indicated that most people take taxi during 6 a.m.-12 p.m. and 6-9 p.m. Some group

Taxi Co., Ltd.

Exhibit 4: Porter’s Five-Forces Model (For taxi service industry)  New Entrant: Moderate Barrier to Entry High cost for start-up business The business model is not very hard to copy unless Pai Sure has acquired its reputation as the first-mover.  

Suppliers: Low Bargaining Power There are many suppliers of equipment such as GPS and radio systems. 

Rivalry: High  Numerous competitors 

Buyers: Low Bargaining Power Passengers act individually rather than collectively. 

Substitute Product: High Various types of other means of transportation 

Exhibit 5: Characterizing the Business Model of Pai Sure Taxi Factors related to offering

  

Foundation level Provide taxi services Customize offering  Narrow breadth

  

Proprietary level Safety and reliable taxi service Punctuality Lost and found feature



Rules level Waiting time should not exceed 10 minutes

Taxi Co., Ltd.

Appendix A: Management Resume

Panithan Akarasriprapai  Address: 88/3 Klang Muang Village Sukhumvit 77 Road Suanluang Suanluang Bangkok 10400 Tel. (662) 184-8552, (668) 9-968-3161 E-mail: [email protected]

EDUCATION 2011-2013

SASIN GRADUATE INSTITUE OF BUSINESS ADMINSTRATION CHULALONGKORN UNIVERSITY BKK, Thailand Master of Business Administration Graduate

2005-2006

CHULALONGKORN UNIVERSITY BKK, Thailand Master of Arts Labour Economic and Human Resource Management

2001-2004

CHULALONGKORN UNIVERSITY Bachelor of Economics, Quantitative Analysis

BKK, Thailand

Taxi Co., Ltd.

Tanyatip Kharuhayothin  Address: 198/170 Therdthai Road Pak-klong, PhasriJaroen Bangkok 10160 Tel. (662) 457-2243, (668) 9-261-4837 E-mail: [email protected]

EDUCATION 2011-2013

SASIN GRADUATE INSTITUE OF BUSINESS ADMINSTRATION CHULALONGKORN UNIVERSITY BKK, Thailand Master of Business Administration Graduate KELLOGG GRADUATE SCHOOL OF MANAGEMENT NORTWESTERN UNIVERSITY IL, USA Foreign Exchange Student, Spring 2012

2004-2008

EXPERIENCE 2009-2011

CHULALONGKORN UNIVERSITY BKK, Thailand Bachelor of Arts, Communication Management (1st class honor)

Hill & Knowlton Thailand  Associate

BKK, Thailand

Taxi Co., Ltd.

Nipaphan Nicrodhanon  Address: 12/1 Ramkamhaeng 24 Yaek 2 Huamark, Bangkapi, Bangkok 10240 Tel. (662) 718-5357, (668) 9-443-5981 E-mail: [email protected]

EDUCATION 2011-2013

2003-2007

EXPERIENCE 2007-2011

SASIN GRADUATE INSTITUE OF BUSINESS ADMINSTRATION CHULALONGKORN UNIVERSITY BKK, Thailand Master of Business Administration Graduate

CHULALONGKORN UNIVERSITY BKK, Thailand Bachelor of Science, Statistic (Insurance) (1st class honor)

The Siam Cement PLC BKK, Thailand  Assistance Manager Handle all insurance policies and loan agreements Manage in-house captive insurance company, Cementhai Captive Insurance Pte Ltd (CCI)  

Taxi Co., Ltd.

Kantika Angsutornrangsi  Address: 60/122 Krisadanakorn 21 Bangna-Trad, Pravais, Dokmai Bangkok 10260 Tel. (662) 751-6830, (668) 6-790-5124 E-mail: [email protected]

EDUCATION 2011-2013

SASIN GRADUATE INSTITUE OF BUSINESS ADMINSTRATION CHULALONGKORN UNIVERSITY BKK, Thailand Master of Business Administration Graduate KELLOGG GRADUATE SCHOOL OF MANAGEMENT NORTWESTERN UNIVERSITY IL, USA Foreign Exchange Student, Spring 2012

2003-2007

EXPERIENCE 2007-2010

ASIAN UNIVERSITY Chonburi, Thailand Bachelor of Business Administration, Major in Finance (1st class honor)

Deloitte Touche Tohmatsu Jaiyos Advisory

BKK, Thailand

Taxi Co., Ltd.

Suchai Noichaya  Address: 18 Somkid Gardens 11B, SoiSomkid, Pleonchit, Pathumwan Bangkok 10330 Tel. (662) 254-2228, (668) 9-688-4116 E-mail: [email protected]

EDUCATION 2011-2013

SASIN GRADUATE INSTITUE OF BUSINESS ADMINSTRATION CHULALONGKORN UNIVERSITY BKK, Thailand Master of Business Administration Graduate SAMUEL CURITS JOHNSON GRADUATE SCHOOL OF MANAGEMENT CORNELL UNIVERSITY NY, USA Foreign Exchange Student, Spring 2013

2002-2006

EXPERIENCE 2007-2011

CHULALONGKORN UNIVERSITY Bachelor of Arts, Spanish Major (1st class honor)

BKK, Thailand

Thai Airways International

BKK, Thailand

Taxi Co., Ltd.

Appendix B: Pro-forma Income Statement (Worst Case Scenario) Income Statement (000s) 

Pai Sure Taxi  Year of Operation

Price/unit (net of discounts)  Units Sold (000s) ( see Sales Projections sheet)  Sensitivity Analysis Sales Deflator (e.g. -15%)  TOTAL SALES (THB000s) Unit Direct Cost (see COGS sheet)  Sensitivity Analysis CGS Inflator (e.g. +10%) COST OF GOODS SOLD % of Total Sales GROSS PROFIT % Gross Margin

Sept

Oct

Nov

Dec

Jan

Feb

Mar

Apr

May

June

Year 2

Year 3

Year 4

2013

2014

2015

2016

T otal

Total

Total

17 5449

17 6397

17 7345

67,568

78,185

89,913

105,550

121,187

10.48

10.48

10

10

10

10

3,680 64% 2,112 36%

3,677 63% 2,114 37%

44,404 66% 23,164 34%

49,469 63% 28,717 37%

56,639 1 33,274 0

66,281 1 39,269 0

75,909 1 45,278 0

0 523 464 700 16 1,703 29%

0 523 464 700 18 1,705 29%

0 523 464 700 20 1,706 29%

200 6,180 5,561 8,400 127 20,469 30%

2,945 5,892 8,400 372 17,608 23%

3,215 5,645 5,600 220 14,679 0

3,392 6,036 6,533 313 16,274 0

3,619 6,535 7,467 412 18,033 0

406

407

408

2,695

11,108

18,595

22,995

27,245

109 752.19 -643

121 517 -396

131 299 -168

168 82 87

10,465 2,407

18,199 4,186

22,826 5,250

27,331 6,286

16.50 351

16.50 351

16.50 351

16.50 351

16.50 351

16.50 351

16.50 351

16.50 351

16.50 351

16.50 351

16.50 351

3,861

5,792

5,792

5,792

5,792

5,792

5,792

5,792

5,792

5,792

5,792

5,792

10.68

10.62

10.59

10.56

10.55

10.53

10.52

10.51

10.50

10.49

10.48

3,748 97% 113 3%

3,728 64% 2,064 36%

3,716 64% 2,075 36%

3,708 64% 2,083 36%

3,702 64% 2,090 36%

3,697 64% 2,095 36%

3,692 64% 2,099 36%

3,689 64% 2,103 36%

3,685 64% 2,106 36%

3,682 64% 2,109 36%

200 427 461 700 2 1,789 46%

0 523 464 700 3 1,690 29%

0 523 464 700 5 1,692 29%

0 523 464 700 7 1,693 29%

0 523 464 700 8 1,695 29%

0 523 464 700 10 1,697 29%

0 523 464 700 11 1,698 29%

0 523 464 700 13 1,700 29%

0 523 464 700 15 1,701 29%

-1,676

374

384

390

395

398

401

403

405

16.04 avg. 4212

T otal

17 4739

11.00 351

 

Total

0% 

INCOME BEFORE INTEREST & TAXES

INCOME BEFORE TAXES  Taxes on income (Zero if negative Income Deduct accumulated losses if applicable) NET INCOME % of Total Sales

Aug

 Year 1

0% 

OPERATING EXPENSES Initial setup costs (expensed) Sales and Marketing General and Administrative Depreciation of P&E Depreciation of R&D & IPP  TOTAL OPERATING EXPENSES % of Total Sales

Interest income Interest expense NET INTEREST INCOME

2012

Year 0 July

2012

(Worst Case Scenario  ) 

 Mnth 0.1%  0.6% 

23% 

GRANT INCOME RECEIVED Retained Earnings (opening)  Available for Distribution Dividends Paid RETAINED EARNINGS (CLOSING)

COMMERCIAL IN CONFIDENCE

0.00 89.11 -89

1.33 87.60 -86

1.66 86.09 -84

2.06 84.58 -83

2.47 83.07 -81

2.87 81.56 -79

3.29 80.05 -77

3.70 78.54 -75

4.12 77.03 -73

4.54 75.52 -71

4.96 74.01 -69

5.39 72.50 -67

Mnth  36 0.1%  969.69 0.6%  -933

-1,765 0

287 66

299 69

308 71

314 72

320 74

324 75

328 76

332 76

335 77

338 78

341 78

1,762 811 23% 

-1,765 -46%

221 4%

230 4%

237 4%

242 4%

246 4%

250 4%

253 4%

256 4%

258 4%

260 4%

263 5%

951 1%

8,058 10%

14,013 0

17,576 0

21,045 0

10

10

10

10

10

10

10

10

10

10

10

10

120

120

0

0

0

-1,765 -1,755 0 -1755

-1,755 -1,524 111 -1634

-1,634 -1,394 115 -1509

-1,509 -1,262 118 -1381

-982 -719 126 -845

-845 -580 128 -708

-708 -440 129 -569

-569 -298 130 -428

-428 -156 131 -287

-1,765 -156 1,358 -287

-287 4,203 4,029 3862

-1,381 -1,129 121 -1250

-1,250 -994 123 -1117

-1,117 -857 125 -982

28

 

 

3,862 12,772 7,007 10869

10,869 22,007 8,788 19657

19,657 32,961 10,522 30179

Taxi Co., Ltd.

Appendix C: Pro-forma Cashflow Statement (Worst Case Scenario) Cashflow Statement (000s)

Pai Sure Taxi  Year of Operation 2012 CASH INFLOW FROM OPERATIONS Sales Revenue ($000s) Plus: Accounts Receivable opening balance Less: Accoun ts Receivable ending balan ce CASH INFLOW FROM OPERATIONS CASH OUTFLOW FROM OPERATIONS SETUP COSTS Cost of Goods Sold Plus: Accounts Payable opening balance Less: Accounts Payable ending balance CASH PURCHASES

Sales & Marketing Expenses General & Administrative Exp Research & Development Intellectual Property Protection  Taxes payable Net increase in Inventory  Net increase in Equipment CASH EXPENSE DISBURSEMENTS NET OPERATING CASH FLOWS

July

CASH OUTFLOW FROM FINANCING Interest payable Debt retirement Equity Buy-back Cash Dividends CASH OUTFLOW FROM FINANCING NET FINANCING CASH FLOWS

50%

Oct

Nov

Feb

Mar

Apr

May

June

T otal

5792 161 241 5711

5792 241 241 5792

5792 241 241 5792

5792 241 241 5792

5792 241 241 5792

5792 241 241 5792

5792 241 241 5792

5792 241 241 5792

5792 241 241 5792

5792 241 241 5792

5792 241 241 5792

67568 0 241 67326

200 3748 0 156 3592

0 3728 156 155 3729

0 3716 155 155 3717

0 3708 155 155 3709

0 3702 155 154 3702

0 3697 154 154 3697

0 3692 154 154 3693

0 3689 154 154 3689

0 3685 154 154 3685

0 3682 154 153 3682

0 3680 153 153 3680

0 3677 153 153 3677

200 44404 0 153 44251

427 461 97 0 0 0 42000 42984 -43076

523 464 98 0 66 0 0 1151 832

523 464 98 0 69 0 0 1153 921

523 464 98 0 71 0 0 1155 928

523 464 98 0 72 0 0 1157 932

523 464 98 0 74 0 0 1158 936

523 464 98 0 75 0 0 1159 940

523 464 98 0 76 0 0 1160 943

523 464 98 0 76 0 0 1161 945

523 464 98 0 77 0 0 1162 947

523 464 98 0 78 0 0 1162 949

523 464 98 0 78 0 0 1163 951

6180 5561 1 174 0 811 0 42000 55727 - 32851

0 10 30,000 15,000 45010

1 10 0 0 11

2 10 0 0 12

2 10 0 0 12

2 10 0 0 12

3 10 0 0 13

3 10 0 0 13

4 10 0 0 14

4 10 0 0 14

5 10 0 0 15

5 10 0 0 15

5 10 0 0 15

89 250 0 0 339 44671

88 250 0 111 448 -437

86 250 0 115 451 -440

85 250 0 118 453 -441

83 250 0 121 454 -442

82 250 0 123 455 -442

80 250 0 125 455 -442

79 250 0 126 455 -441

77 250 0 128 455 -441

76 250 0 129 455 -440

74 250 0 130 454 -439

1595 0 1595

395 1595 1990

482 1990 2472

487 2472 2958

491 2958 3449

495 3449 3944

498 3944 4442

501 4442 4943

504 4943 5448

507 5448 5955

510 5955 6465

4%

CASH INFLOW FROM FINANCING Interest earned Grants Received Equity funding Proceeds from Debt funding CASH INFLOW FROM FINANCING

Sept

3861 0 161 3700

4%

0%

Aug

(Worst Case Scenario)  

Year 0 Dec Jan

NET CASH FLOW OPENING CASH BALANCES ENDING CASH BALANCES

COMMERCIAL IN CONFIDENCE

29

Year 1

Year 2

Year 3

Ye ar 4

2013 Total

2014 T otal

2015 Total

2016 Total

78185 241   271 78155

89913 271 977 89207

105550 977 1140 105387

121187 1140 1303 121024

0 49469 153   171 49451

0 56639 171 615 56195

0 66281 615 715 66181

0 75909 715 816 75809

2945 5892 1256 0 2407   0 0 12499 16206

3215 5645 1354 0 4186 0 8400 22800 10212

3392 6036 1433 0 5250 0 8400 24511 14696

3619 6535 1516 0 6286 0 8400 26356 18859

36 120 30000 15000 45156

109 120 0 0 229

121 0 0 0 121

131 0 0 0 131

168 0 0 0 168

73 250 0 131 454 -438

970 3000 0 1358 5327 39829

752 3000 0 4029 7781 -7552

517 3000 0 7007 10523 -10402

299 3000 0 8788 12087 -11957

82 3000 0 10522 13604 -13436

513 6465 6978

6978 0 6978

8653 6978 15631

-190 15631 15441

2739 15441 18180

5423 18180 23603

4%

4%

0

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