Business Plan - Wlm Agency - Hamid Bouchikhi
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Transcript of Business Plan - Wlm Agency - Hamid Bouchikhi
WORK LIFE MANAGEMENT-AGENCY FOR B2B EXECUTIVE MBA
BESSON, Myriam - ECHTERMEYER, Renate - JAULENT, Frederic -
LIEB, Elke - MAUDERER, Sabine
January 2009
INDEX
1. The Company............................................................................................................................2
1.1. Business Model ......................................................................................................................2
1.2. Legal Form .............................................................................................................................3
2. Our Service................................................................................................................................4
2.1. Service Description of The Company ....................................................................................4
2.2. Innovation / Competitive Advantage......................................................................................6
2.3. Value Proposition to Customer...............................................................................................7
2.4. Target Customers....................................................................................................................8
2.5. Local Area ..............................................................................................................................9
3. Market Research.....................................................................................................................10
3.1. Market Research - Demand ..................................................................................................10
3.2. Market Research – Supply....................................................................................................14
3.3. Competition and Substitute ..................................................................................................18
4. Marketing and Sales...............................................................................................................19
4.1. Marketing and Sales Strategy...............................................................................................19
4.2. Positioning............................................................................................................................20
4.3. Sales and Distribution...........................................................................................................21
4.4. Special Services....................................................................................................................21
4.5. Pricing Strategy ....................................................................................................................22
4.6. Promotion .............................................................................................................................25
5. Risks and Opportunities ........................................................................................................26
5.1. Risks (Weaknesses and Threats) ..........................................................................................26
5.2. Opportunities And Strength..................................................................................................28
6. Business System and Organisation .......................................................................................29
7. Implementation Schedule ......................................................................................................30
7.1. First 2 years: The Business Development Phase or “Pilot”..................................................30
7.2. After the 3rd Year:................................................................................................................31
8. Financial Planning And Financing .......................................................................................31
8.1. Structure And Capitalization ...............................................................................................31
8.2. The Financial plan ................................................................................................................32
8.2.1 The Income Statement ............................................................................32 8.2.2 The Balance Sheet And Cash Flow Statement ....................................... 34 8.2.3 Break even and sensitivity analysis : ...................................................... 36 8.2.4 Valuation Of The Firm : .........................................................................37
9. Exit Options ............................................................................................................................38
EXECUTIVE SUMMARY
The Work Life Management-Agency (WLM-Agency) offers companies under
contract exclusively an online market place which enables their employees to order
per mouse click childcare, eldercare and services around household from certified
service providers. The WLM Care Center, which employees can call for free, takes
care of all special requests and gives general information. In order to ensure high
quality, only selected certified service providers will be put on the WLM platform.
According to our online-survey conducted, in Germany employees spend on average 26
minutes per day at work for organizing their private life. This means that for an
employee with an annual salary of 48,000 € a company pays him or her 3,036 € per year
for organizing private issues. In this B2B we offer companies under contract a unique
possibility to support their employees at coordinating work and private life while
fully concentrating on their job. Furthermore, it increases their attractiveness as
employer and helps to recruit and retain qualified employees. This is essential to
survive especially in a tough economic environment like today, but difficult to
implement due to demographic developments.
In Germany, our service is unique, as it guarantees high quality of a bundle of the most
needed services, which can be ordered 24 hours per day at a one-stop-shop simply
per mouse click. Our target customers are industrial companies which employ between
several hundred and several thousand employees. This is the result of interviews with
companies of various fields of activities and was confirmed by a workshop we carried
out with the Chamber of Commerce and Industry Rhine-Neckar and the Mannheim
Business School. Those companies showed the biggest interest, because they have the
financial power to invest in their employees and see the WLM platform mainly as a
solution for their HR-strategy to retain and recruit talented people. Nevertheless, also
other companies were very much interested, especially those which mostly employ top
qualified people like big law firms. But the latter expect top service quality that in the
beginning we cannot ensure. After having established an extensive network with
suppliers that ensure the availability of top quality services we might go additionally for
the highly profitable segment.
The WLM-Agency will start its business in Germany, because market research has
shown that throughout Germany there is a big need for solutions that enable employees
to coordinate work and private life easily. We will start in the area of Rhine-Neckar as
there are many industrial enterprises and some of them already asked for the
implementation of the WLM platform. Furthermore, we were asked by the Chamber
of Commerce and Industry Rhine-Neckar for strategic cooperation, since the CoC
implements certifications for family-friendly companies and wants to build a network.
In order to grow and increase profitability we will expand within the first five years to
five other German areas where target customers are based.
The success of the WLM-Agency is linked to the availability of high quality services.
Selected and certified service providers look for cooperating with us in order to increase
significantly their number of customers with the same quality expectations within the
same region. Furthermore, we offer them access to their potential customers whose
income is above average and who are willing and able to pay higher prices. Therefore,
the service providers agree on doing business with the employees of the companies
under contract only via the WLM-Agency. Our main income sources are fixed monthly
fees paid by the companies. Provisions will be paid by the service providers for ordered
services and finally, family-oriented companies will pay for advertisement on the WLM
web page.
The founders, a team of five top executives of various fields, will start their business in
spring 2009 by founding a GmbH and hiring a highly qualified manager who will be
supported by “minijobers”. The goal of the WLM-Agency is to grow while mitigating
risk. Therefore, we will start with a pilot phase for the first two years based on a lean
structure which still allows us to serve the middle tier market with the expected quality
level. Afterwards, we will expand to a sizeable business in order to accelerate growth
and to build a strong cash position. At that time the number of staff will increase. Our
operations are worth a value of 1,000,000 € within five years yielding an average 43
% return on equity and a net margin of 12 %. We offer 35 % of our shares to
investors for financing 65 % of the equity in two rounds: a firm commitment of
62,000 € out of 95,000 € in total on the first round and an option of 223,000 € out of
347,000 € for the second round. It is a highly profitable opportunity for an investment
with moderate risk. Both, long term investment and exit by sale are promising, since the
market for work life management will increase significantly.
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BUSINESS PLAN
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1. THE COMPANY
1.1. BUSINESS MODEL
The Work Life Management-Agency (WLM-Agency) is an electronic marketplace for
companies under contract (our customers). We enable their employees (consumers) to
order per mouse click services that simplify the organization of private life. The WLM-
Agency offers an electronic hub for connecting demand of employees and supply of
high quality services. Employees can order in particular:
• childcare,
• eldercare,
• services around household.
These are the most requested services by employees according to our online survey1 and
our workshop at the Chamber of Commerce and Industry Rhine-Neckar (CoC)2. For
special requests or general information employees can also call the WLM Care Center
16 hours a day, seven days per week. Our Care Center will take care of any request that
might come up regarding such sensitive services. We guarantee high quality standards
for the offered services. We will only put service offers from selected certified service
providers on the WLM platform and implement a feedback system to ensure the
expected quality level. This B2B business helps our customers to recruit and retain
especially high potentials and talents and improve their image as attractive employer.
According to interviews we had with HR-directors and CEO’s3 of various company
types, this will be an important competitive advantage for the future4. Due to
demographic developments, the competition among companies to hire qualified and
talented people will increase significantly especially in Germany. In particular during
tough economic times which Germany faces today, those talented employees are crucial
to keep the business on the right track. The WLM platform furthermore enables
employees to fully concentrate on their career, while having a well-organized private
1 See Annex 1 - Results of the Online-Survey with Employees 2 See Annex 2 - Results of the Workshop of WLM-Agency at the Chamber of Commerce and Industry 3 See Annex 3 - Results of the Interviews with Companies 4 See Annex 4 – A – Quotation from CEO & HR Director of DePuy, a Johnson & Johnson company and Annex 4 – B – Extracts from studies, Business Week and USA Today.
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life. The efficiency of the employees will increase, so that the company saves resources
and money.
Company(Customer)
Employee(Consumer)
Service Supplier
Work-Life Management
Agency
Offer access to WLM Service Platform as employee´s benefit
High quality services by certified supplier
Availability of highquality services
WLM Service Platformhelps to attract andretain qualified people
Increase of efficiency, performance andcommitment WLM-CC provides
information anddeals with specialrequest
Growth due to newchannels & customers
Chart 1: Business Model Overview
1.2. LEGAL FORM
The WLM-Agency will be founded in Germany and should therefore have a legal form
under German law. Legal forms of other countries might have implications on tax and
other issues that are difficult to handle. The founders of the WLM-Agency want to
establish an entity which legal form is recognized by customers, suppliers and investors.
Therefore, the company is going to be established as a GmbH under German law. The
GmbH must have a minimum founding capital of 25,000 EUR, which we can use for
doing business only under very restrictive conditions, since this is the minimum
ordinary share capital the law requires. Although the shareholders are not individually
liable, creditors can always fall back on these capital creditors. A GmbH can be run by
the managing directors. A supervisory board is not required since the WLM-Agency
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will employ less than 500 employees. The German Parliament has just amended the
GmbH law which came into force on November 1st, 2008. These reforms make the
foundation of a GmbH much easier, quicker and less expensive. The new version of
GmbH called “Unternehmergesellschaft (haftungsbeschränkt)“ which can be founded
without a minimum of capital has not been recognized among the German society and
will therefore not be taken into account as a real alternative to the well-known GmbH.
2. OUR SERVICE
2.1. SERVICE DESCRIPTION OF THE COMPANY
The WLM-Agency offers companies under contract exclusively access to an electronic
marketplace via internet, where their employees can order per mouse click services that
help him or her to better coordinate work and private life. This electronic hub connects
supply and demand of the most required services of employees which are childcare,
eldercare, all services around household and shopping assistance. This is the result of
our workshop at the Chamber of Commerce and Industry, our interviews with HR-
directors and CEO’s and the online survey with employees. In the beginning, we will
focus on these services in order to ensure high quality standards. Only selected suppliers
that guarantee high quality services will have access to the marketplace and can offer
their services through the WLM platform. Suppliers have to proof our defined quality
requirements by certifications.
Furthermore, we will implement a feedback system. Users of the platform (employees)
are asked to fill out a feedback form in order to evaluate the quality of services they
ordered. These feedbacks will be published at the WLM platform so that potential users
can inform themselves in order to be sure that they get the expected quality. The
feedback system is also an important tool for quality control for the WLM-Agency and
their service suppliers.
Employees of the companies under contract get access to the platform via internet, so
that they can order services 24 hours per day, seven days per week. A company PIN-
Code ensures that only employees of companies under contract have access to the
WLM-platform. Our service enables employees to organize their private life in a very
simple, convenient and time-saving way. For special requests or general information the
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employees can call the free hotline of the WLM Care Center which deals with all raised
questions, concerns and requests. This is important since we deal with very sensitive
services. At least in the beginning users might want to have personal contact and later
on they want to be sure that they can call somebody who takes care of his or her issues.
Especially in cases of emergency it is important to have someone available for
immediate responds.
Furthermore, the WLM-platform offers advice and useful hints that are related to the
offered services (e.g. tax regulation, legal advice regarding employment of East
European care takers). Our platform also shows advertisement of companies that offer
special services that are interesting for employees, e.g. advertisement of gyms that take
care of children or family friendly restaurants and shopping areas.
The WLM-Agency agreed with several suppliers that they will offer their services for a
special price, if the agency will forward requests from the employees to them. The
suppliers agreed that there will be no direct contact between the employees and them.
They are willing to agree on that because the WLM-Agency gives them the chance to
get a lot more customers within the same region that have the same quality expectations.
Furthermore, the WLM-Agency offers them access to consumers whose income is
above average are who are willing and able to pay more for the requested services.
Chart 2: The Whole Product Model
Unexpected Services - > delightful: ROI tools (great place to work®, reduced absence rate, reduced salary increase), special advice (tax hints, legal issues, feedback system.
Augmented Services -> competitive advantage: Customer Care Centre available 16 hours a day / 7 days per week , higher work capacity
Expected Service - > buying decision: high quality standard, availability
Generic Service- electronic hub for connecting supply and demand for special services
Unexpected Services - > delightful: ROI tools (great place to work®, reduced absence rate, reduced salary increase), special advice (tax hints, legal issues, feedback system.
Augmented Services -> competitive advantage: Customer Care Centre available 16 hours a day / 7 days per week , higher work capacity
Expected Service - > buying decision: high quality standard, availability
Generic Service- electronic hub for connecting supply and demand for special services
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2.2. INNOVATION / COMPETITIVE ADVANTAGE
In Germany, the business idea of the WLM-Agency is unique for several reasons. For
many years, in Germany, people did not see a need to deal with the coordination of
work and private life issues. Mostly, there were traditional families with house wives
that took care of all private issues. Several years ago this changed dramatically.
Especially women with an university degree want to have both, family and career
opportunities. According to our market research results and our personal experience,
almost everyone in Germany is aware of this change, but the needs of people who have
to coordinate business and private life in Germany are not satisfied. There are
institutions, companies and individuals that offer services that are especially requested
by working people, but their solutions do not fully satisfy customer’s needs. We have
analysed the needs of employees that have to deal with work and private life issues, and
filled the gaps accordingly.
Mostly, individuals that offer services like house cleaning, childcare or eldercare are on
the black market, e.g. many women from East Europe offer cleaning services for
German households although they are not allowed to do so according to EU-law5/6 The
WLM-Agency only cooperates with suppliers (individuals or companies) that are
officially registered. Consumers are aware of the legal risks and want to hire people on
a legal basis. Furthermore, on the current market ordering services is usually time
consuming and the suppliers are barely flexible. For instance most German
kindergartens are owned by the local government or the church. Those institutions are
less customer-oriented. Ordering via WLM platform is quick, easy and 24 hours a day,
seven days a week possible. All the employees of our customers have to do, is ordering
per mouse click. Private institutions might be different to public kindergartens, but they
usually do not offer services on an “ad hoc-basis”. We offer services on ad hoc-basis or
regular basis (once a week, daily services, etc. or only in case of emergency).
The WLM-Agency is also unique, because it is a one-stop shop for the most requested
services. Although, there are several internet platforms that offer services around
household or childcare, but either those platforms only offer one of these services not a
5 There is a huge black market especially in the service sector. In 2001, the police controlled 350 households in Frankfurt. 211 of those households employed foreigners illegally. See Annex 6.
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bundle of the most requested services or they offer several services, but do not ensure
quality standards nor offer a comprehensive service package with a Care Center like we
do.7 We analysed that the quality issue is the key to success, because the demand side is
dominated by qualified employees that expect high quality standards. Therefore, the
quality aspect is a very important competitive advantage of the WLM-Agency. The
same goes for the special prices our suppliers offer the employees of our customers.8
2.3. VALUE PROPOSITION TO CUSTOMER
There are two main aspects on value proposition to our customers (companies). Firstly,
the WLM-Agency increases the efficiency of their employees significantly. The WLM
platform enables employees to fully concentrate on their daily business, since they do
not have to spend much time on organizing their private life. According to our online-
survey, today employees on average spend daily 26 minutes at work for organizing their
private life. This means that for an employee with an annual salary of 48,000 € a
company pays him or her 3,036 € per year for organizing private issues.9 Nearly half an
hour per day is needed, because in Germany, there is still missing an efficient way to
organize private life. By having access to the WLM platform the amount of time needed
will decrease significantly, since the WLM platform offers the most required services at
a high quality standard which can be ordered in a very easy and quick way. The
employees save time and our customers save significantly resources and money.10
The second important aspect on value proposition is recruiting and retaining qualified
and talented people. The WLM-Agency helps companies under contract to recruit and
retain especially high potentials and talents, since especially those employees expect
more than only a monthly payment by their employer. According to our interviews with
HR-directors,11 nowadays, qualified people who look for a job in Germany prefer
companies which enable them to have a career and a private life. This support is not
only expected by qualified women, but by all qualified employees that founded a family
6 See Chapter 3.2. Market Research Supply: reasons are explained 7 See Chapter 3.3. Competition and Substitutes 8 See chapter 2.1 – Service Description of the WLM-Agency 9 See Annex 1 - Results of the Online-Survey with Employees 10 See Annex 7 - A Prognos AG / BMFSFJ 11 See Annex 3 and 4 A/B – Results of the Interviews with Companies
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(or intend to have children) together with a highly qualified partner, who also wants to
have a career and not stay at home (dual career). Additionally, hard working employees
without family also look for support. The interviewed HR-directors and CEO’s
confirmed that supporting employees at work life management will be an important
competitive advantage for the future. Due to demographic developments, the
competition among companies to hire qualified people will significantly increase,
especially in Germany. As a result of these aspects, companies that offer their
employees access to the WLM platform will:
• have a competitive advantage in recruiting and retaining qualified employees,
• increase the motivation and satisfaction of their employees,
• reduce fluctuation and absenteeism and
• get a reputation as good (best) place to work for.
BENEFITSBENEFITS
Functional: efficiencyretention of HPconvenient
Emotional: attractivenessreliability/quality
FEATURESFEATURES- intranet platform- internet access- service offers- call center- quality certification
IDEASIDEAS-tailored assistance via customer care center (phone)
- bundle of services- partnerships with suppliers =� better tariffs� address real needs of
employees for WLM
VALUEVALUE
happy customer & consumer
BENEFITSBENEFITS
Functional: efficiencyretention of HPconvenient
Emotional: attractivenessreliability/quality
FEATURESFEATURES- intranet platform- internet access- service offers- call center- quality certification
IDEASIDEAS-tailored assistance via customer care center (phone)
- bundle of services- partnerships with suppliers =� better tariffs� address real needs of
employees for WLM
VALUEVALUE
happy customer & consumer
Chart 3: WLM Value Creation
2.4. TARGET CUSTOMERS
Our target customers are companies that understand the essential need to support their
employees in organizing private life. Our interviews with HR-directors and CEO`s of
many different companies showed what kind of customers the WLM-Agency should
focus on. First of all, the more qualified people a company employs, the more it is
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interested in the WLM platform. Consequently, the more blue collar worker a company
employs, the less interested it is. At the same time the interviews made clear that
companies that mostly employ top qualified people like big international law firms are
very much interested in our services, but expect a maximum service quality that at least
in the beginning we cannot ensure (e.g. nannies which are German native speakers and
holding a university degree). Many smaller companies said they prefer an individual
solution for their employees and see no need to offer everybody within the company
access to a services platform. On the other hand, for ethical reasons they deny to offer
only a few people access to the WLM-Agency.
The workshop at the Chamber of Commerce and Industry Rhine-Neckar (CoC)12 and
the exchange with staff of the CoC made clear the target group of the WLM-Agency are
companies of the industry that employ several hundred people, up to 10,000. Those
companies showed in general the biggest interest, because they are too big to offer their
employees individual solutions, have the financial power to invest in their employees
and see the WLM platform mainly as a solution for their HR-strategy to retain and
recruit talented people. Nevertheless, also companies outside the industry or with less or
more employees were very much interested.
2.5. LOCAL AREA
The WLM-Agency will start in Germany, because there is a big need for solutions that
enable employees to coordinate work and private life easily.13
We will start in spring 2009 in the Rhine-Neckar area around Mannheim. Our workshop
at the CoC with potential customers showed that this area has a wide range of industrial
enterprises which either already said they want to implement the WLM platform or at
least signalled that they are very much interested. Furthermore, the CoC asked us
whether we want to build a strategic cooperation, since the CoC intends to implement
certifications regarding family-friendliness of companies and looks for a network. The
WLM-Agency and the CoC will have to negotiate the details like provisions, etc. This
12 See Annex 2 - Results of the Workshop of WLM-Agency at the Chamber of Commerce and Industry 13 See Chapter 2.2. Innovation and Competitive Advantage: background of this special need in Germany
10/40
cooperation will be a door opener for the WLM-Agency, because the CoC in Mannheim
has a very good reputation.
18 months after our start, we will expand in other areas with many companies that
belong to the target group in Berlin, Bielefeld, Frankfurt, Hamburg, Stuttgart. Each year
one or two new areas will be covered.14
3. MARKET RESEARCH
A flood of secondary market research information serves as proof for the success of the
business model of the WLM-Agency. The following structure helps to gain insights
from different perspectives from WLM customers (companies) and their employees
(consumers). The statements that are gathered through numerous available studies are
supported by pointed primary research methods that get to the heart of WLM business
model.
3.1. MARKET RESEARCH - DEMAND
Currently a main subject of discussion in economy, society, and politics is the challenge
to combine private life – especially family – with professional life15. We notice that
companies now are starting to calculate the benefits of family friendly activities into
economic figures. Surveys by the German government suggest that employers
motivations to invest in such activities are to:
• retain high qualified employees (for 83.4%);
• increase the job-satisfaction (for 81.1%);
• reduce fluctuation and number of persons on sick leave (for 78.4%).16
On the one hand, 84% of top managers are convinced that family friendliness is a
economic factor for Germany17; the deficit of qualified employees becomes acute, this
is why employers want to offer them striking features. On the other hand, politics are
concerned about the reversed demographic pyramid and try to enable supportive
14 See Chapter 7. Implementation Plan
15 Source: „Familienfreundlichkeit auf Wachstumskurs, Bundesministerium für Familie, Senioren, Frauen und Jugend, August 2008“
16 Source: „Unternehmensmonitor Familienfreundlichkeit 2006, Institut der Deutschen Wirtschaft Köln“ 17 Capital-Elite Panel, 2007
11/40
measures with various government actions, like tax deduction. Especially childcare
services and services around the household are tax deductible,18 since the German
government wants to increase the demand for those services and to give an incentive for
avoiding the black market.
Secondary Market Research
Employer
Due to the demographic development and the unsatisfying German education system there
is a growing lack of qualified employees in the German labor market. Therefore, staff
marketing and employer branding become more important. Employee retaining is now
considered as an important Key Performance Indicator. According to a survey of the Boston
Consulting Group and the World Federation of Personnel Management Association, there is
no other resort of HR activities that German personal manager find more important than the
demographic change.19
In the Rhine-Neckar Area, 10,678 companies are listed at the CoC. The area is quite
healthy. The unemployment rate of 3.9% in Baden-Württemberg, the state where Rhine-
Neckar is located, is much lower than the average rate of 7.1% in total Germany20.
18 See Annex 8 – Lecture by Dr. Zuber (PCW) acc § 35 a EStG (German Regulation on Income Tax) 19 See whole study at: http://www.bcg.com/impact_expertise/publications/files/Creating_People_Advantage_German_Exec_Summ_April_2008.pdf 20 Source: German Federal Agency for Labour Affairs, Data from November 2008: http://www.arbeitsagentur.de/zentraler-Content/A01-Allgemein-Info/A011-Presse/Publikation/pdf/Landkarten-Eckwerte-2008-11.pdf
Age structure of the German population in 2006 (Source: Federal Office for Statistics of Germany)
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WLM-Agency has decided to start its business in the region of “Zukunft
Metropolregion Rhine-Neckar (ZMRN)”. 37 companies are member of the ZMRN-
project with a total sales volume of 48,139 Mio € and 158,320 employees21. The
population growth forecast of ZMRN area is, with over 102 %, more optimistic than for
total Germany22.
Employee
A strong employer branding is an essential asset in the “war for talent”.
While the amount of work-related accidents decreases, behavioural and psychological
disturbances of employees drastically increase. The ratio of absence days increases from
6.6% to 10.5% reports the confederation of German psychologists23 in its evaluation
about psychotically health in 2008.
A survey24 of 528 employers from companies in Rhineland-Palatinate showed that a
well balanced work-private life is very much appreciated amongst the persons
questioned. More than two third are convinced that employee’s performance increase
with more family-liked service supplies. In the recruitment of workers, family-friendly
measures are seen as an advantage by almost two thirds. In terms of employee turnover
(76%) and absenteeism (70%), family-friendly measures are predominantly recognized.
Moreover 89% of the employees think that their work performance increases under
family-friendly conditions.
We also expanded our research abroad. The US research firm Universum conducted a
survey among 44,000 undergraduates in the US and found out that the future generation
wants work-life balance, because “they know they will be working more hours”.25
Several experts who have been interviewed by the USA Today made the same
conclusion.26
With a look on the different generations on the work place, nowadays, four generations
are present: Veterans, Boomers, GenXers, and Generation Y (or Millennials). Each
21 See Annex 10 - Members of ZMRN e.V. 22 See Annex 11 – Situation in Metropolregion Rhine-Neckar, June 2007 23 Berufsverband Deutscher Psychologen - BDP 24 See Annex 12 - Family-friendly working conditions in Rhineland-Palatinate - Present and Future 25 Business Week, September 18, 2007, The Bottom Line on Next Gen Workers 26 USA Today, June 11, 2005, Generation Y: They've arrived at work with a new attitude
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generation has different perceptions of leadership and work27: Amongst a total of
758,458 employees in the ZMRN area, the most represented are GenXers followed by
Boomers. GenXers want work life balance “now”, Boomers are the “Sandwich
Generation” which have to manage childcare and eldercare at the same time. The
number of employees that themselves hire people for private issues increases, but there
is still a gap between potential and actual utilization. Needs for developing a more
balanced life are there and very promising for the WLM-Agency28.
Primary Market Research
Employer
We did our primary research especially in the fields of our potential customers. We started
first in gathering information during 14 interviews with CEO’s or HR directors of many
different companies and various industries and sizes throughout Germany29. These
interviews showed that companies that employ qualified employees and talents recognized
the importance of offering family friendly actions and other supporting measures in order to
meet this request in the labor market. However, only few companies, mostly large
corporations, offer work life management activities like childcare, holiday camps for kids or
concierge services to cover daily life’s needs. This gap between expectation and reality
explains why most of the interviewed companies were very much interested in our services.
We concluded from these interviews, that the higher the number of qualified employees, the
bigger the interest.
In cooperation with the CoC, the MBS, and the Metropolitan Region Rhine-Neckar, we
then organized a company workshop in order to present our business model and to check
the demand and the need of services. The CoC invited for us industrial companies from the
Rhine-Neckar area which are members of the network of family friendly companies of the
“Forum Vereinbarkeit Familie und Beruf”. The discussions showed that big corporations
like Roche Diagnostic, MVV or John Deere offer family friendly actions, while middle size
and smaller companies like Pfalzwerke and MBS do not have the HR resources to organize
27 See Annex 13 – Actual Number of Employees in the Metropolregion 28 See Annex 14 - Employees as Employers 29 See Annex 3 and 4A/B - Results of the Interviews with Companies, CEOs and HR, study extracts
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these supporting services. All of them have a high demand in these services, which are not
yet all covered.
This workshop helped us to determine the target group of customers and the main services
requested from employer side, which are again childcare, eldercare and all services around
household. Further it gave insights about additional service expectations.
Employee
To identify the real need of German employees we undertook an extensive online
survey.30 Responses from about 320 employees throughout Germany have been
collected and analyzed. Participants were members from BPW (Business Professional
Woman Association), MBS, students and alumni, and others. Industry branches and
sizes representation were dominant in services and research/University. Their company
culture are mainly German style.
The most interesting and important outcome of the survey is the fact that a German
employee spends about 26 minutes of his/her working time for private issues. This time
is used for organizing their private life: individual and family needs. The most wanted
services are all kind of care: for children, elder people, pets, but also services around
household and car washing. Whatever personal issues are solved during this 26 minutes,
the costs for the employer are significant. An average of 26 minutes per day means 92
hours per year, 11 working days per year. This leads to costs of 3.036 €, lost per year
and per employee! The calculation is based on 211 working days per year and an
average yearly salary of 48,000 €.
3.2. MARKET RESEARCH – SUPPLY
According to the results of the online survey31 and the company workshop32, the most
requested services from companies and employees are childcare, eldercare and all
services around household. In general there is a wide and growing range of service
offers available, mostly offered by B2C companies. This includes local offices, regional
30 See Annex 1 – Results of the Online-Survey with Employees 31 See Annex 1 – Results of the Online-Survey with Employees 32 See Annex 2 – Results of the Workshop of WLM-Agency at the Chamber of Commerce and Industry
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and interregional organizations, municipal institutions, individuals, and finally, a lot of
internet platforms with a selection of service offers, which deliver the requested services
directly or just link demand and supply. Interviews with selected service providers
demonstrated the high interest in future collaboration with the WLM-Agency, in order
to enter in the B2B business and increase turnover33. As we will start our business in the
Rhine-Neckar area, the supply research was mainly focused on this region34, but also in
Frankfurt and Berlin.
Childcare
According to the Federal Statistical Office, currently just 17.8 % of children below 3
years are provided with external childcare service (12.2 % in West Germany, 42.4% in
East Germany). The coverage of children that are between three and six years old is
about 89%.35 According to the law for expansion of childcare for children under the age
of 3 years (TAG) and the law of child advancement (Kinderförderungsgesetz - KiföG)
the Federal Government aims to cover 35 % of those children by 201336. This means the
creation of 230,000 additional seats in childcare institutions and the increase of care
quality. In 2008, the German Chamber of Commerce (DIHK) 37 executed a survey with
6,700 public childcare institutions. According to this survey, there is still a high lack of
childcare beyond the opening hours, emergency care, holiday support and also of
qualified personnel. Only 6% of these childcare institutions are cooperating with
companies by offering some contingents.
A good alternative to childcare institutions are “day mothers” which are organized by
day mother associations or youth welfare offices. Main difference to childcare
institutions is that they offer a higher flexibility regarding the individual needs of
childcare and cover the lack of childcare for children under three years. The Federal
Government started initiatives to optimize the framework of “day mother” regulation in
order to increase their qualification and to ease the organization38.
33 See Annex 15 B - Quotations of Service Providers that are willing to cooperate with WLM-Agency 34 See Annex 15 A/B/C – Interviews and Quotations with Supply Rhine-Neckar 35 Federal Office for Statistics, Press Releases No. 54 and 495 from 2008
36 http://www.bmfsfj.de/Politikbereiche/Familie/kinderbetreuung.html
37 http://www.dihk.de/inhalt/informationen/news/meldungen/meldung011092.main.html 38 http://www.handbuch-kindertagespflege.de/bmfsf
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The CoC Rhine-Neckar just developed a databank for childcare with exclusive access
for their members39. This databank includes all services around childcare, including
childcare institutions, day mothers, babysitting, holiday camps and school tutoring. In
order to offer their clients an optimal quality, the CoC organized education programs for
babysitters and day mothers. As the CoC offered us future collaboration, this databank
could be linked with our service platform. In addition to that, a lot of B2C service
providers offer in their portfolios childcare executed by their own certified staff. Those
service providers showed the most interest to work with us since they have a big interest
in expanding and getting in touch with high income clients. The main challenge for the
WLM-Agency is to organize a reliable concept for childcare out of a high variety of
offers.
Eldercare
By 2030, one of three citizens will be older than 60 years. Furthermore, the German
population is decreasing. In order to cover the growing need in eldercare the Federal
Ministry for Family Affairs developed a concept to promote the attractiveness and to
optimize the qualification of the care and nursery profession40. Our company workshop
showed that the demanded services of eldercare are not the nursery services, as these are
well organized on a professional level. Most important is the daily support of elderly
people or their families, like organization of household, cooking, shopping or just
entertainment. Therefore, our main goal is to cover the demand for eldercare by offering
services around household.
Household: International comparisons show that the key to success for the introduction
of household services is the reduction of administration and easy organization for
service providers. The continuously increase of so called “Minijobs” in private
households of Germany, demonstrates that this is a real alternative to the “black market”
on a legal base. Minijobers are people who work part time, earn up to 400 EUR net per
month and do not have to pay social security contributions. Income tax of 20 % can be
paid by the employer. These attractive conditions encourage people who only want to
39 http://www.phpserver001.de/mrn/kinderbetreuung.html 40 http://www.bmfsfj.de/bmfsfj/generator/Politikbereiche/aeltere-menschen.html
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work a few hours per month to do so rather on a legal base than on the black market.
Another activity to promote family supporting services is the innovation competition
“Unternehmen Familie” (= company family). The German Minister for Family Affairs,
Ursula von der Leyen, awarded the 12 best projects “Company family - innovation
through family supporting services”.41
Besides B2C service providers, who are offering a range of services around household,
gardening and pet care, a lot of local offices and shops cover daily needs, like washing
and cleaning services, car washing, shopping services, delivery of beverages, window
cleaning etc.
In brief , there is a high offer of service supply. The main challenge for the WLM-
Agency is to identify out of the variety of service providers the right mix of reliable and
qualified suppliers. There are internet companies, that offer a range of B2C services
provided by their own certified staff. These companies which have a network all over
Germany due to franchise concepts are potential future suppliers. But also the
collaboration with local institutions and shops are essential, because of the proximity to
the customer. Finally, strategic alliances with institutions like the regional CoC are
qualified sources for supply.
41 The Innovation competition “Unternehmen Familie” (company family) based on BOSCH foundation and BMFSFJ http://www.unternehmen-familie.de/
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3.3. COMPETITION AND SUBSTITUTE
Generally there is only a small number of competitors, which offer WLM services B2B
and only a few substitutes. The following table shows the main competitors and
substitutes. The most important features are categorized and evaluated in comparison to
the WLM-Agency.42
Table 1: List of Competitors and Substitutes
42 * low, ** medium, *** good, ****excellent
Company Exclusivity Local Excellence WLM Service Offer Ease of Handling Quality Payment system
WLM Agency **** **** **** **** **** ****Electronic Marketplace only available for strong local focus, bundle of WLM services quick and easy, per mouse- high quality due to clearly simple,
companies customer proximity childcare, eldercare, click and hotline, high quality due to clearly fixed membership fee for under contract, household services preselection + control of defined quality standards companies,B2B certified service poviders and quality control employee pays services
PME Familienservice GmbH **** *** ** ** ** **Consulting only available located in focus mainly on childcare, time consuming due to quality standard according complicatedService placement for companies 26 cities in own kindergartens, extensive consulting before individual demand credit point system,
under contract, Germany, Austria organize nanny education, service placement lack due missing competition company pays for consulting B2B Switzerland starts eldercare, WLM and service placement,
employee pays servicesdirectly to the provider
Besser betreut GmbH * * ** ** * ***Electronic Marketplace available for all over Germany childcare, eldercare permanent service offers no quality control simple,
everybody, pet care, after registration, contact no quality standards monthly user fee, B2C no houshold services to service provider via payment of
email, no hotline, service provider directlyprocess of selection difficult by users
Caretaker GmbH **** no information ** no information ** no informationConcierge System only companies present in 5 cities no specialisation on WLM, inhouse concierge system quality of WLM not reliable fixed payment for allocation
under contract, in Germany offices, estates, seniors. (no further information) due to missing experience of concierge system,B2B employees, neighbor ship in this area payment of provided services
Public Institutions * **** * ** ** **(i.e. municipal kindergarten) available for strong local focus no bundle of WLM services, selection process difficult, quality standard depends on complicated payment system
everbody, B2C / B2B focus on individual services limited availability institution and region, due to the mixture ofvery small offer of like i.e. childcare suffer due to lack of finance public and individualcompany contingents payment systems
Black Market * **** * * * *available for strong local focus offer of individual services, time consuming quality standard depends on payment directly,everybody, B2C, mainly housecleaning limited availability individual skills, no reliability legal risks legal risks lack of certification and control
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The biggest competitor is the “PMEFamilienservice GmbH”. Our interviews as well
as our workshop at the CoC showed that many companies are not completely satisfied
with the collaboration with the “Familienservice”: on the one hand they mainly do
intensive and time consuming consulting of employees and on the other hand their
payment system is very complicated. The companies under contract have to pay
according to a credit point system, which most of the interviewed companies could not
even explain. “Besser Betreut GmbH”: does not have any quality control. Everybody
is allowed to register and to offer services. The interviews and the workshop showed
that quality control is crucial for all of our potential customers, so that “betreut.de” is
not a real competitor. “CareTaker GmbH” is not specialized on the services we offer
and has no quality guarantee.
Substitutes:
Public institutions do mostly not cover the needs of fulltime employees and have a
limited availability. The main substitute for the WLM-Agency could be the black
market. Especially household services and eldercare are offered on the black market,
because of the lack of sufficient infrastructure in Germany. The WLM-Agency deals
with this lack by coordinating supply and demand in the selected areas. Furthermore,
consumers prefer to order services on a legal basis, since the majority fears the legal
risks of hiring people illegally. For companies these legal risks are even higher, so that
the black market is not a real alternative to the WLM-Agency.
4. MARKETING AND SALES
4.1. MARKETING AND SALES STRATEGY
The Marketing and sales strategy reflects the vision, mission and values of the WLM-
Agency.43 The strategy is focused on the value creation for companies who want to
offer WLM services to their employees in order to have on one hand a competitive
advantage in recruiting and retaining qualified employees, on the other hand an increase
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in work efficiency. Additionally, the strategy is focused on the need of these qualified
employees.
4.2. POSITIONING
As mentioned44 the WLM-Agency targets industrial companies which employ between
several hundreds up to 10,000 people. These target companies expect high quality. Not
only the services that employees can order per mouse click have to be of high quality,
but also all other issues around the business relation between us and the company and
their employees. This means that the platform must be reliable, the WLM Care Center
available and led by qualified staff and finally the payment system has to be simple and
comprehensible. This expected level of quality is different from those of big
international law firms and consulting companies. Consulting and law firms which
demonstrated a very high interest in the service platform expect not only high quality
but top quality standards45. As this cannot be guaranteed in the beginning, we will start
at the industrial segment. Later, with growing experience, we might enter the top tier
segment. Manufacturing companies which employ mostly blue collar workers are not
interested in our services at all, not even at a low quality level. Even if those production
companies would get interested they probably will not ask for our quality segment.
Therefore these companies are not potential future clients.
Chart 4: Positioning in the Market Pyramid
43 See Annex 17 - Vision, Mission, and Value of WLM-Agency 44 See Chapter 2.4. Target Group and Local Area 45 See Chapter 2. Target Customer
Top Quality expected by big international law firms, consulting companies etc. with a very high number of high potentials
High quality expected by industry, banks, insurance companies, with a high number of qualified employees
No significant need, not even for low quality; Production sides and plants
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4.3. SALES AND DISTRIBUTION
A strategic cooperation with the CoC Rhine-Neckar will be an important way to get in
touch with our target companies, since the CoC has a significant network of family
friendly companies and a very good reputation. Our second distribution channel will be
direct contacts to CEO’s or the HR directors of companies that might be interested.
Since it is difficult to get in touch with unknown and busy managers, our general
manager has to look for ways that allow him to meet those people. So he has to join
business organizations, interest groups, participate in local activities, as described in
chapter 4.5. In a later stage, after having developed a brand name and a reputation, sales
will be proceeded by a sales and key account manager.46 The same concept of
distribution channels applies for the other regions we will do business at. In the long run
the distribution through a franchise concept could be considered.
Contracts 2009 2010 2011 2012 2013
Total 6 20 42 126 205
Rhine Neckar 6 15 22 36 50
Berlin 5 15 30 40
Bielefeld 5 13 20
Frankfurt 30 40
Hamburg 20 30
Stuttgart 25
Table 2: Number of Contracts within the first 5 years
4.4. SPECIAL SERVICES
It is an important strategic goal to achieve customer loyalty and retention. Therefore, we
will offer in addition to the service platform a selection of supporting services to the
companies and their employees. At the beginning of a business relationship with our
customer an online survey will be proceeded, in order to find out which services the
46 See Chapter 7. - Implementation Plan.
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employees of our customers exactly need. Installation, maintenance and actualization of
the platform are evident services which are included. In addition to that, the
establishment of a ROI (Return of Investment) tool is planned. By this tool the company
will be provided with monthly or yearly statistics about the number of users and the
number of requested services. In order to optimize the services to the final consumers
(employees) we establish the WLM Care Center which has comfortable opening hours
and well trained staff. Based on a feedback system of the employees, a rating system
with information about the service quality will be published. The platform will also
publish general information and news about family friendly institutions, like restaurants
and shopping areas, as well as local child related activities and education programs,
information about tax deductions for childcare services, etc. In the long run, we plan the
further development of the service platform with an advanced functionality for the users
such as personalized discount package to employees, voucher mechanism, billing and
invoice details. We will target a roadmap of functionalities to consumers such as online
booking of services, and online payment of services.
4.5. PRICING STRATEGY
The pricing strategy follows the general marketing and sales strategy which is, on one
hand, focused on the value creation for our customer (company) and the final consumer
(employee) and, on the other hand, on our value proposition, which is described with
the three keywords: quality, reliability and efficiency.
The pricing concept includes:
• a monthly membership fee for the companies under contract
• the costs of services provided by service providers
• the provision for the ordered services
• the revenues from affiliated marketing.
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CompanyCompany
Employee Employee
Service SupplierService SupplierWork-Life
Management Agency
Work-Life Management
Agency
Membership Fee
Payment of the services to the supplier
Financial Support
Provision
Chart 5: Pricing concept
Membership fee
The customer (company) has to pay a fixed monthly membership fee, based on a yearly
contract. The company workshop has confirmed that a fixed membership fee is the
preferred payment system, justified by two reasons: less administration and tax
advantages. The price of the membership fee is related to the value proposition to the
customer and mainly based on three aspects:
I We sell high quality, reliablility and efficiency and offer a unique solution
which includes a comprehensive service package:
• process of making our platform available for company’s employees
• pre-selection and availability of high quality and reliable services via our platform
• matching demand of employees and supply of requested services
• guaranteeing the flow of the requested services and
• special service package described in part 4.4.
II Increase attractiveness of companies as employer by offering the WLM
platform to their employees.
III Increase efficiency of employees: Savings of the company due to the increase
of employee’s efficiency.
In the pricing model there is no differentiation between big, medium or small
companies. The financial effort in offering the service platform does not depend on the
company size, but on the number of users. A scaled pricing system, calculated on the
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estimated quantity of users will be implemented. The number of real users can be
revised due to the ROI tool.
Number of employees that use WLM services
Average fee per user Yearly membership
50 200 € 10,000 €
50- 200 120 € 15,000 €
200 – 500 57 € 20,000 €
500 – 1000 40 € 30,000 €
1000 – 5000 24 € 40,000 €
Table 3: Membership fee
Service Prices
The service prices are based on two facts:
• The final consumers are primarily qualified employees and high potentials who have a higher income.
• It is a clear strategic goal to offer reliable services with a guarantee of high quality, executed by certified service providers.
Therefore, the pricing is based on the right price performance ratio and not on
competition with the low price segment or the black market. Good quality, reliability,
flexibility, certification and the ease of booking are the competitive advantages, which
justify higher service prices. Nevertheless, there will be a price reduction for employees
that order through the WLM platform, since the WLM-Agency negotiated a price
reduction with suppliers, who agreed on that because they expect increasing turnovers
and benefits from economy of scale.
Service Price per hour
Household services 16€ - 19€
Childcare / eldercare 18€ - 22€
Babysitting, tutoring of homework etc. 9€ - 12€
Others, i.e. concierge services, shopping, pet sitting etc. 7€ - 10€
Table 4: Service Prices
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Provision
The supplier has to pay a provision to the WLM- Agency in two ways:
• 3% - 5% of the service turnover, (tailored, depending on sort of services used) or
• unique allowance, based on fixed service contracts (full time, half time etc.).
The service provider will agree on the payment of provision as he will achieve an
increasing service turnover with lower payment risks due to solvent customers.
Additionally, he will gain a competitive advantage against the increasing number of
B2C service companies.
Affiliated Marketing
The WLM-Agency will provide on the service platform information about family
friendly locations, like child orientated restaurants, shopping areas with childcare
service, etc. This additional service is based on the results of the workshop at the CoC
Rhine-Neckar, where the participants asked for that kind of information on the WLM
platform.47 The advertisement of the family friendly companies offers an additional
income source based on the concept of affiliated marketing. (Internet banners).
4.6. PROMOTION
Our promotion strategy is focused on the development of the brand name and the
reputation as a high quality and reliable service company. Promotion activities will
mainly be addressed to the target companies but also to their employees. If there are a
lot of employees interested in our services, the motivation for a company to invest in the
WLM platform will increase. Furthermore, the monthly fee with increase with the
number of employees using our services. The development of a web page which is
available for both, employer and employee is an important marketing action.
Furthermore, high presence on the internet supported by high hit-rates at search engines
like Google or Yahoo are very important.
In the first year we plan a budget for flyers with information about the company and the
services offered. The most important communication channels are the strategic partners,
47 See Annex 2 - Results of the Workshop of WLM-Agency at the CoC Rhine-Neckar
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like the CoC Rhine-Neckar, and memberships in professional institutions and
organization. They offer an useful network and also the tool to provide flyers, to publish
the internet link of the WLM-Agency. Furthermore, the network enables to enter in
direct contact with the relevant persons (i. e. BWP, Chamber of Commerce, Industry
Clubs). Partnerships with family orientated organizations like “Bündnis Familie”
(alliance family) or “Erfolgsfaktor Familie” (success factor family) are important door
opener to family orientated companies and can be promoted on our homepage and vice
versa.
Participation on competitions for WLM or family friendly awards as well as
certifications will lead to highly welcome publicity. The participation in professional
fairs or HR fairs (PERSONAL 2008) will also be considered.
In the following years we plan to publish advertising in some selected business journals
in order to reach the CEOs or HRs. (PERSONAL, HRM.de, Human Resources News,
Manager Magazin, or WirtschaftsWoche etc.). Finally, we will also put ads on
newspapers and magazines employees read reguarly.
5. RISKS AND OPPORTUNITIES
SWOT - Analysis of the WLM-Agency:
Strengths: • First entrance - open new market • Guarantee for high quality services • One-stop shop • Access to comprehensive service
package
Weaknesses: • WLM Care Center is labor intensive • Quality management
Opportunities: • War on talents • Awareness of German government
concerning WLM • Strategic alliance with Chamber of
Commerce • Top tier of market pyramid
Threats: • Limited availability of high quality
services • Competition • Being copied by other companies • WLM not considered as strategic asset
5.1. RISKS (WEAKNESSES AND THREATS)
The business model of the WLM-Agency is based on a low investment, especially in the
first two years. Furthermore, exit is simple and feasible in short term. All in all, the risks
we face are low.
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The WLM Care Center is labor intensive and its value creation is sensitive to the
number of consumers using it. We therefore create a very user-friendly platform and
evaluate the issues addressed to the WLM Care Center. The quality management is also
very important, since quality is a key competitive advantage and our value proposition.
In the beginning our general manager will do the quality management, afterwards we
hire a quality manager. Furthermore, we developed a pre-selection process for the
suppliers we will collaborate with and using our feedback and rating system for
controlling.
Our success depends on the availability of high quality services. The main task of our
company will be to ensure cooperation with selected certified service providers, who
can guarantee the availability of the requested services at the expected quality level. We
have therefore contacted several certified service providers to ensure that many of them
are willing to cooperate48. Especially B2C service providers are very interested in
cooperation in order to increase their turnover and to get in touch with promising
customers. On the long run a backward integration of the supply might be an option.
Like all successful business models, ours might be copied at some stage. Copy rights
are not applicable, since our business idea is no patentable invention. We are aware of
future competition. We will take the advantages of being first market entrant, gather
experience in the pilot phase and develop the concept in order to ensure the competitive
advantage. The gathered experience will allow us to expand in other areas in a short
time. Furthermore, we have the chance to build a network with suppliers that allow us to
enter additionally the very profitable top tier market. Backward integration would also
be a major competitive advantage. Finally, cooperation with competitors might be
considered, e.g. connections with electronic market places that cannot ensure high
quality services on their own.
Finally, work life management might not be seen as a strategic asset by the companies.
In times of cost cutting it will be a major challenge for us to convince our potential
customers that our services will increase employee’s efficiency and that work life
management generally increases productivity.
48 See Annex 15 A/B/C - List of service providers that showed interest in cooperation with the WLM-Agency
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For quantitative analysis of the risks see sensitivity analysis.49
5.2. OPPORTUNITIES AND STRENGTH
The extensive market research has shown that we have considerable strength and
opportunities. Our business model just comes up at the right time.
As first market entrant we create and capture considerable value. We keep the
competitive advantage by continuously developing the business concept and expanding
in other areas while benefiting from synergies. Our one-stop shop and the
comprehensive service package are unique on the German market. As mentioned we
developed a reliable process to ensure the expected quality level.
As shown in chapter 3.1 there will be a “war on talents” due to the demographic
development in Germany and due to the unsatisfying German education system. For
companies it is therefore essential to offer not only high salaries but also support on
work life management.
The awareness of the German government that work life management has an impact on
the demographic and economic development has increased and will lead to a rising
demand on WLM services. There are already tax deductions on income tax for
childcare, services around household and others. The employee does not have to pay
income tax nor social security contribution for childcare that is provided by the
employer. Furthermore, the German government intends to increase childcare for
children under three by 2013 significantly50.
The Chamber of Commerce Rhine-Neckar asked for strategic alliance. This is a real
opportunity to get in touch with many companies that are interested in our business.
Finally, we will have the opportunity to enter the top tier market after having
established a reliable network with top service supplier. This segment is very profitable.
49 See Annex 17 – Sensitivity Analysis and Risk Mitigation 50 For Details see Chapter 3.1. Market Research Demand
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6. BUSINESS SYSTEM AND ORGANISATION
Year 1 Year 2 Year 3 Year 4 Year 5
No. of customers: 6 20 42 126 205
No. of employees:
WLM Care Center 751 71 5 8 9
Quality Manager 0 0 0 1 1
Trainer Tool Support 0 0 0 1 1
Supply Manager 0 0 1,5 2 2
Sales Force 0 0 2 5 6
General Management 1 1 1 2 2
IT 0 0 1 1 1
Total 8 8 10,5 21 22
Table 5: Summary Staff Planning and Functions
Our value proposition focuses on three main key words: quality, reliability and
efficiency. Therefore, our business organization has to reflect our ability to fulfill
these values through appropriate work force, organization and implementation
schedule.
Our solution is at first delivered trough out a valued network. This valued network is
relying on dedicated organisation to the family awareness such as regional chamber of
commerce, etc. Our sales force will heavily leverage those network to gain access to
B2B (target customers).
Our strategic sourcing is a key success factor and will be supported by a supplier
homologation process relying on key certification. We intend to develop a strong
continuous evaluation process using online rating by employee using a moderation step.
Solution access is granted through an e-platform which we intend to develop in five
steps, one per year, funded by our earnings.
Business delivery function is implemented with a Care Center that we expect to be the
main contact point of employees when starting using our solution. We expect each
51 Minijob contracts during the first two years
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employee to call at least 3 times a year for 30mn workload at the beginning of our
operation (inclusive of the request assessment, search and contact and delivery of the
service). We expect this call rate to drop as we improve our e-platform and gain
experience.
We will start up using minijobs contract type and a light organisation requiring a
“virtual” phone network, before converting our WLM Care Center into a full time
position and physical office structure in order to leverage our know-how and improve
our quality to employee. Depending on our structure the number of positions will
evolve over time. We plan to invest in a knowledge database (similar to a customer
business intelligence tool support) in order to leverage our WLM Care Center.
7. IMPLEMENTATION SCHEDULE
We reasonably foresee two main parts in our development: a business development step
and a business roll out phase.
7.1. FIRST 2 YEARS: THE BUSINESS DEVELOPMENT PHASE OR “P ILOT ”
The first 2 years as a start-up, the WLM-Agency will mainly focus on sales and related
supply. The challenge is to gain first sales contracts, and build reliability and quality
image through chosen suppliers. This is why the first two years, our manager will deal
directly with supply issues in order to select, follow and manage partnerships with
adequate suppliers. The quality issue will be his or her main topic to ensure that our
value proposition is respected. For this, suppliers will be selected proving their
certification for childcare, and other services. These certifications will be regularly
challenged and measured via follow-ups and customer feedbacks.
Our second main focus will be on the WLM Care Center as it is the personalisation tool
to the final consumers (employees). To animate this Care Center, while keeping costs
under control, we intend to hire minijobers (home office) that will be trained regularly
to ensure quality and reliability. To facilitate the ease of use of the services the WLM-
Agency will give to their final consumers the possibility to request services online
through out a website.
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The Rhine-Neckar and Berlin area will provide the necessary learning experience to
redesign a scalable business operation and e-platform.
7.2. AFTER THE 3RD YEAR:
We think that at the beginning of the third year our manager will be able to hire a full
time person to take this quality & supply issue in charge as it is one of our main value
proposition. During the third year we will strengthen the business by converting “mini-
jobs” into hired professionals and build our knowledge support database. We will
prepare our main investment in our e-platform by hiring a IT professional and develop a
sales team. The Bielefeld area will be the main target with this new sized-up business.
During the forth year, we should be able to hire additive people to insure a sustainable
development while keeping our customer value high. To improve our quality and skills
levels align with our value proposition we intend to hire a permanent internal trainer.
To deal and manage our “customer relationship” we will invest in the construction of
our e-platform: from a simple website during the first two years, we target a platform
enabling advanced functionality for our corporate users such as personalized discount
package to employee, voucher mechanism, billing and invoice detail. We will target a
roadmap of functionalities to consumers such as online booking of services, rating of
services, online payment of services, etc. At the same time, we intend to expand our
sales force to assist the general manager in gaining and following customer’s contracts.
Our target during the forth year will be Frankfurt and Hamburg. All other functions
such as accounting, payment, administration, legal issues will be outsourced.
8. FINANCIAL PLANNING AND FINANCING
8.1. STRUCTURE AND CAPITALIZATION
The WLB-Agency intends to grow from a “seed” company the first two years to a
sizeable business model from the third to fifth year. Therefore, the legal form has to be
both suitable to a German start up but also limit owner’s liability in order to mitigate
risk. This is why we have decided to establish our company as a GmbH with 25,000 €
of fixed capital52. The management team intend to develop our activities into two steps:
52 For further details on the legal form see Chapter 1.2.
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First step (year 1 and 2): The management team will settle the company on the market
with offering the expected quality level with minimum investments (light platform
development, lean structure composed of “minijobs” and a general manager). For this
step one, the company needs a total of 95,000 € from which 25,000 € are fixed capital
needed for founding the GmbH and 70,000 € for the settling of operations. Once this
“pilot” model is validated, the team intends to go one step further in developing our
activities. The second step (year 3 to 5) will allow to develop very quickly professional
database knowledge, a fine-tuned website, and to hire skilled staff.
These two steps are mandatory in order to become a leading player on the market and
bring cash in what would allow the WLM-Agency to enter additionally the 3rd the top
tier of the pyramid as a third step. WLB-Agency intends to capitalize the company with
full equity during the starting phase then to use debt as leverage in order to reduce the
costs of financing. We will then be in a position to accumulate cash and invest heavily
in the 6th year. To enter this business with us, the team offers investors 35 % shares of
WLM-Agency for 65 % of the total investments. This means a first investment of
62,000 € to start the business and an option to invest 225,000 € in a second round. The
founders will bring the remaining capital.
8.2. THE FINANCIAL PLAN53
As stated in this business model, the company aims at being a service provider to
companies that want to retain high potentials and offer “alternative” solutions to their
managers to improve efficiency.
8.2.1 THE INCOME STATEMENT
Given these hypotheses, the main estimations concerning revenues are derived from the
number of contracts54 settled both with potential customers and related business with
the suppliers. WLM-Agency’s potential customers have been evaluated according to the
extensive market research, statistics and figures given by the CoC or other sources.55
53 See Annex 18 – Financial plans 54 For number of contracts with customers see Part 4.3. 55 See annex for interview results, statistics and result of workshop at the Chamber of Commerce.
33/40
The essential streams of revenues come from the customers, the suppliers and in a later
stage from advertisement56. The flow of the revenues is in line with the company’s
forecast of geographical expansion.
Income Statement of WLM-Agency 2009-2013 (base case):
The main streams of costs are related to operating activities and investments in the
platform. The first two years costs concerning operating activities are quite low as the
management team begins with minijobs with relatively low wages level and no office
location costs. As well the investments for the platform remain quite reasonable. This
leads to a loss of 57,480 € the first year but a small profit of 77,992€ in the second year
due to an increase in number of contracts.
In the third year the costs will skyrocket because of the switch from minijobers to
skilled full time employees. As well, WLM-Agency supports a big investment in the
56 See Annex 19 – Examples of Prices for Banners on Web Sites
2009 2010 2011 2012 2013
Realistic Realistic Realistic Realistic Realistic
Operating Revenue 106 126 € 355 993 € 758 979 € 2 385 451 € 3 925 065 €
Total Revenue 106 126 € 355 993 € 758 979 € 2 385 451 € 3 925 065 €
Cost of Sales 148 358 € 189 147 € 528 773 € 927 758 € 1 042 128 €
Gross Margin 44 357 €- 151 496 € 188 406 € 1 371 269 € 2 750 637 €
Gross Operating Profit 42 232 €- 166 846 € 230 206 € 1 457 694 € 2 882 937 €
Cost of sales 148 358 € 189 147 € 528 773 € 927 758 € 1 042 128 €
R&D - € - € - € - € - €
G&A 12 405 € 28 602 € 254 116 € 451 233 € 506 397 €
Selling (sales & mkg) 1 242 € 4 285 € 186 210 € 655 211 € 750 001 €
Advertising 0 0 0 0 0
Operating Profit 55 879 €- 133 959 € 210 120 €- 351 250 € 1 626 539 €
Operating Profit before Depreciation (EBITDA)55 879 €- 133 959 € 210 120 €- 351 250 € 1 626 539 €
Depreciation 2 125 € 15 350 € 41 800 € 86 425 € 132 300 €
Operating Income After Depreciation 58 004 €- 118 609 € 251 920 €- 264 825 € 1 494 239 €
Interest Income 524 € 1 379 € - € 12 704 € 31 082 €
Total Income Avail for Interest Expense (EBIT)57 480 €- 119 988 € 251 920 €- 277 529 € 1 525 321 €
Interest Expense - € - € 5 841 € 10 978 € 47 375 €
Income Before Tax (EBT) 57 480 €- 119 988 € 257 760 €- 266 551 € 1 477 946 €
Income Taxes - € 41 996 € - € 93 293 € 517 281 €
Net Income from Continuing Operations 57 480 €- 77 992 € 251 920 €- 184 236 € 1 008 040 €
Net Income from Total Operations 57 480 €- 77 992 € 257 760 €- 173 258 € 960 665 €
Total Net Income 57 480 €- 77 992 € 257 760 €- 173 258 € 960 665 €
Tax Rate 35% 35% 35% 35% 35%
2009 2010 2011 2012 2013
Realistic Realistic Realistic Realistic Realistic
Operating Revenue 106 126 € 355 993 € 758 979 € 2 385 451 € 3 925 065 €
Total Revenue 106 126 € 355 993 € 758 979 € 2 385 451 € 3 925 065 €
Cost of Sales 148 358 € 189 147 € 528 773 € 927 758 € 1 042 128 €
Gross Margin 44 357 €- 151 496 € 188 406 € 1 371 269 € 2 750 637 €
Gross Operating Profit 42 232 €- 166 846 € 230 206 € 1 457 694 € 2 882 937 €
Cost of sales 148 358 € 189 147 € 528 773 € 927 758 € 1 042 128 €
R&D - € - € - € - € - €
G&A 12 405 € 28 602 € 254 116 € 451 233 € 506 397 €
Selling (sales & mkg) 1 242 € 4 285 € 186 210 € 655 211 € 750 001 €
Advertising 0 0 0 0 0
Operating Profit 55 879 €- 133 959 € 210 120 €- 351 250 € 1 626 539 €
Operating Profit before Depreciation (EBITDA)55 879 €- 133 959 € 210 120 €- 351 250 € 1 626 539 €
Depreciation 2 125 € 15 350 € 41 800 € 86 425 € 132 300 €
Operating Income After Depreciation 58 004 €- 118 609 € 251 920 €- 264 825 € 1 494 239 €
Interest Income 524 € 1 379 € - € 12 704 € 31 082 €
Total Income Avail for Interest Expense (EBIT)57 480 €- 119 988 € 251 920 €- 277 529 € 1 525 321 €
Interest Expense - € - € 5 841 € 10 978 € 47 375 €
Income Before Tax (EBT) 57 480 €- 119 988 € 257 760 €- 266 551 € 1 477 946 €
Income Taxes - € 41 996 € - € 93 293 € 517 281 €
Net Income from Continuing Operations 57 480 €- 77 992 € 251 920 €- 184 236 € 1 008 040 €
Net Income from Total Operations 57 480 €- 77 992 € 257 760 €- 173 258 € 960 665 €
Total Net Income 57 480 €- 77 992 € 257 760 €- 173 258 € 960 665 €
Tax Rate 35% 35% 35% 35% 35%
34/40
platform and database knowledge. Although the team continues to expand
geographically, to gain contracts and uses debt to reduce financing costs, these heavy
investments won’t allow us to be in a profitable situation. WLM-Agency will recover
from these investments on 4th and 5th year due to the business development and gains in
productivity based to more professional staff and IT systems.
8.2.2 THE BALANCE SHEET AND CASH FLOW STATEMENT
To be consistent with its business model, the management team intends to keep its
earnings from year to year to consolidate its cash position for its 6th year deployment. In
this perspective, WLM-Agency will place 80 % of its cash in security bonds at 3.5 %
and 20 % of its cash in stocks of companies operating in the same value chain as its
business model (yielding an estimated average return of 12 %). The two main financial
ratios adequate for the activity concern the return on equity and the net margin. Return
on equity yield an average 43 % if the team accepts the two years of equity funding. As
well the net margin is close to 12% in average on global activities.
35/40
Balance Sheet of WLM-Agency 2009-2013 (base case): All amounts € , 2009 2010 2011 2012 2013
Realistic Realistic Realistic Realistic Realistic
Assets
Cash and Equivalents (yc blocked account)24 698 € 33 608 € 70 192 € 25 701 € 851 385 €
Receivables 8 723 € 29 260 € 62 382 € 196 064 € 322 608 €
Inventories 0 0 0 0 0
Other Current Assets 0 0 0 0 0
Total Current Assets 33 421 € 62 867 € 132 574 € 221 765 € 1 173 993 €
Gross Fixed Assets (Plant, Prop, & Equip,)8 500 € 61 400 € 167 200 € 345 700 € 529 200 €
Accumulated Depreciation & Depletion 2 125 € 17 475 € 59 275 € 145 700 € 278 000 €
Net Fixed Assets 6 375 € 43 925 € 107 925 € 200 000 € 251 200 €
Intangibles & other Non current assets - € 15 598 € 15 598 € 50 250 € 242 383 €
Total Non Current Assets
Total Assets 39 796 € 122 391 € 256 098 € 472 015 € 1 667 576 €
Liabilities
Payables 2 276 € 6 879 € 14 617 € 24 912 € 30 876 €
Short Term Debt - € - € - € - € - €
Accrued Accounts - € - € - € - € - €
Other Current Liabilities - € - € - € - € - €
Total Current Liabilities 2 276 € 6 879 € 14 617 € 24 912 € 30 876 €
Long Term Debt - € - € 36 730 € 69 092 € 298 022 €
Other Non-Current Liabilities 0 0 0 0 0
Total Non-Current Liabilities - € - € 36 730 € 69 092 € 298 022 €
Total Liabilities 2 276 € 6 879 € 51 346 € 94 004 € 328 898 €
Stockholder's Equity
Ordinary Shares 70 000 € 70 000 € 417 000 € 417 000 € 417 000 €
Locked in capital 25 000 € 25 000 € 25 000 € 25 000 € 25 000 €
Retained Earnings (accum deficit) 57 480 €- 20 512 € 237 249 €- 63 991 €- 896 674 €
Total Equity 37 520 € 115 512 € 204 751 € 378 009 € 1 338 674 €
Total Liabilities & Stock Equity 39 796 € 122 391 € 256 098 € 472 013 € 1 667 572 €
Retained Earnings
Opening retained earnings 0 - 57 480 € 20 512 € - 237 249 € - 63 991 €
Net profit of the year - 57 480 € 77 992 € - 257 760 € 173 258 € 960 665 €
Preference Dividends 0 0 0 0 0
Ordinary Dividends 0 0 0 0 0
Closing retained earnings - 57 480 € 20 512 € - 237 249 € - 63 991 € 896 674 €
All amounts € , 2009 2010 2011 2012 2013Realistic Realistic Realistic Realistic Realistic
Assets
Cash and Equivalents (yc blocked account)24 698 € 33 608 € 70 192 € 25 701 € 851 385 €
Receivables 8 723 € 29 260 € 62 382 € 196 064 € 322 608 €
Inventories 0 0 0 0 0
Other Current Assets 0 0 0 0 0
Total Current Assets 33 421 € 62 867 € 132 574 € 221 765 € 1 173 993 €
Gross Fixed Assets (Plant, Prop, & Equip,)8 500 € 61 400 € 167 200 € 345 700 € 529 200 €
Accumulated Depreciation & Depletion 2 125 € 17 475 € 59 275 € 145 700 € 278 000 €
Net Fixed Assets 6 375 € 43 925 € 107 925 € 200 000 € 251 200 €
Intangibles & other Non current assets - € 15 598 € 15 598 € 50 250 € 242 383 €
Total Non Current Assets
Total Assets 39 796 € 122 391 € 256 098 € 472 015 € 1 667 576 €
Liabilities
Payables 2 276 € 6 879 € 14 617 € 24 912 € 30 876 €
Short Term Debt - € - € - € - € - €
Accrued Accounts - € - € - € - € - €
Other Current Liabilities - € - € - € - € - €
Total Current Liabilities 2 276 € 6 879 € 14 617 € 24 912 € 30 876 €
Long Term Debt - € - € 36 730 € 69 092 € 298 022 €
Other Non-Current Liabilities 0 0 0 0 0
Total Non-Current Liabilities - € - € 36 730 € 69 092 € 298 022 €
Total Liabilities 2 276 € 6 879 € 51 346 € 94 004 € 328 898 €
Stockholder's Equity
Ordinary Shares 70 000 € 70 000 € 417 000 € 417 000 € 417 000 €
Locked in capital 25 000 € 25 000 € 25 000 € 25 000 € 25 000 €
Retained Earnings (accum deficit) 57 480 €- 20 512 € 237 249 €- 63 991 €- 896 674 €
Total Equity 37 520 € 115 512 € 204 751 € 378 009 € 1 338 674 €
Total Liabilities & Stock Equity 39 796 € 122 391 € 256 098 € 472 013 € 1 667 572 €
Retained Earnings
Opening retained earnings 0 - 57 480 € 20 512 € - 237 249 € - 63 991 €
Net profit of the year - 57 480 € 77 992 € - 257 760 € 173 258 € 960 665 €
Preference Dividends 0 0 0 0 0
Ordinary Dividends 0 0 0 0 0
Closing retained earnings - 57 480 € 20 512 € - 237 249 € - 63 991 € 896 674 €
36/40
Cash Flow of WLM-Agency 2009-2013 (base case):
8.2.3 BREAK EVEN AND SENSITIVITY ANALYSIS :
The business model is especially sensitive to the number of contracts as part of the costs
are either sunk (platform) or
cannot be downsized to a low
level of activity ( WLM Care
Center 16/24h – 7/7d).
WLB-Agency reaches its break-
even with 130 contracts during
the fifth year. On a realistic
scenario, break-even with the
forth year of business roll out
2009 2010 2011 2012 2013
All amounts in € , Realistic Realistic Realistic Realistic Realistic
Operating Activities
Cash received from customers 97 403 € 335 456 € 725 857 € 2 251 769 € 3 798 521 €
Cash paid to suppliers 25 416 €- 79 090 €- 170 099 €- 292 799 €- 369 693 €-
Cash paid to employees 134 312 €- 138 341 €- 791 262 €- 1 731 106 €- 1 922 866 €-
Cash generated from operation 62 325 €- 118 025 € 235 504 €- 227 864 € 1 505 962 €
Interest paid - € - € 5 841 €- 10 978 €- 47 375 €-
Income tax paid - € 41 996 €- - € 93 293 €- 517 281 €-
Cash flow from operating activities 62 325 €- 76 029 € 241 345 €- 123 593 € 941 306 €
Investing activities
Proceeds from sale of eqtp plants - € - € - € - € - €
Interest received 524 € 1 379 € - € 12 704 € 31 082 €
Purchase of equipement & plants 8 500 €- 52 900 €- 105 800 €- 178 500 €- 183 500 €-
Investment In WLF financial Instrument - € 15 598 €- - € 34 652 €- 192 133 €-
Acquisition of goodwill - € - € - € - € - €
Cash Flow from investing activities 7 976 €- 67 120 €- 105 800 €- 200 448 €- 344 551 €-
Financing Activities
Proceeds from issuance of share capital 70 000 € 347 000 €
Lock in capital (Gmbh) 25 000 €
Change in bank overdraft - € - € - € - € - €
Proceeds from non-current borrowings - € - € 38 000 € 35 000 € 240 000 €
Repayement of borrowings - € - € 1 270 €- 2 638 €- 11 070 €-
Dividends paid - € - € - € - € - €
Cash flow from financing activities 95 000 € - € 383 730 € 32 362 € 228 930 €
Net increase/decrease in cash and cash equivalent24 698 € 8 909 € 36 585 € 44 492 €- 825 684 €
Cash & cash equivalent at begening of the year 0 24 698 € 33 608 € 70 192 € 25 701 €
Cash & cash equivalent at end of the year 24 698 € 33 608 € 70 192 € 25 701 € 851 385 €
2009 2010 2011 2012 2013
All amounts in € , Realistic Realistic Realistic Realistic Realistic
Operating Activities
Cash received from customers 97 403 € 335 456 € 725 857 € 2 251 769 € 3 798 521 €
Cash paid to suppliers 25 416 €- 79 090 €- 170 099 €- 292 799 €- 369 693 €-
Cash paid to employees 134 312 €- 138 341 €- 791 262 €- 1 731 106 €- 1 922 866 €-
Cash generated from operation 62 325 €- 118 025 € 235 504 €- 227 864 € 1 505 962 €
Interest paid - € - € 5 841 €- 10 978 €- 47 375 €-
Income tax paid - € 41 996 €- - € 93 293 €- 517 281 €-
Cash flow from operating activities 62 325 €- 76 029 € 241 345 €- 123 593 € 941 306 €
Investing activities
Proceeds from sale of eqtp plants - € - € - € - € - €
Interest received 524 € 1 379 € - € 12 704 € 31 082 €
Purchase of equipement & plants 8 500 €- 52 900 €- 105 800 €- 178 500 €- 183 500 €-
Investment In WLF financial Instrument - € 15 598 €- - € 34 652 €- 192 133 €-
Acquisition of goodwill - € - € - € - € - €
Cash Flow from investing activities 7 976 €- 67 120 €- 105 800 €- 200 448 €- 344 551 €-
Financing Activities
Proceeds from issuance of share capital 70 000 € 347 000 €
Lock in capital (Gmbh) 25 000 €
Change in bank overdraft - € - € - € - € - €
Proceeds from non-current borrowings - € - € 38 000 € 35 000 € 240 000 €
Repayement of borrowings - € - € 1 270 €- 2 638 €- 11 070 €-
Dividends paid - € - € - € - € - €
Cash flow from financing activities 95 000 € - € 383 730 € 32 362 € 228 930 €
Net increase/decrease in cash and cash equivalent24 698 € 8 909 € 36 585 € 44 492 €- 825 684 €
Cash & cash equivalent at begening of the year 0 24 698 € 33 608 € 70 192 € 25 701 €
Cash & cash equivalent at end of the year 24 698 € 33 608 € 70 192 € 25 701 € 851 385 €
Scenarios Financial expectations
3647
1043
-241-500
0
500
1000
1500
2000
2500
3000
3500
4000
Thou
sand
s €
NPV High Growth NPV Base option NPV Low Awarness
37/40
can be reached. Nevertheless this business model also shows a special sensitivity to
pricing, cost of capital and operating costs.
This model is build to support 6 areas in Germany with global competencies (WLM
Care Center, IT, training, human resource management and quality) to support the
development and an e-platform which is intended to automate the end-user experience
and increase the productivity of WLM’s Care Center. Any increase in manpower cost
will have a negative impact on the net income. Some downsizing of the operations can
be implemented in order to limit the risk.
Total investment relies on the capacity to generate earnings and was phased out over
several periods. In a very depressed economy the management team may not be able to
sustain its investment plan and loose customer retention as a result. Similarly a lower
pricing strategy will adversely affect its net income. The company’s financial
development plan is highly modular and will help mitigate risk from an economic down
turning.
Using this pilot run to adjust to more realistic trends and sizing the team may consider
several alternatives for the second round of fund raising or exit business.
8.2.4 VALUATION OF THE FIRM :
The valuation of the firm has been calculated according to the firm value model as
WLM-Agency is using both equity and debt in the developing stage. We took
following assumptions to ensure the calculation of the discount rate:
Based on German government bonds we estimated a risk free rate of 3.5 %. The risk
premium was evaluated at a market average of 6 %. However we estimate that we can
apply a 17 % market practice spread based on a high default risk that reflects a risky
start up company.57
57 See Annex 20 – Default Spread Risk
38/40
For the beta, we have performed a peer group study with some other services companies
that gave us an average beta of 1.558 As a start up we consider ourselves as more risky
but as investment remains quite low, we have estimated that the beta concerning our
company could be of 1.9. Given these assumptions the net present value can be
discounted with a rate of 32 %, the 2 first years with full equity then to around 28 %
with mix of equity and debt. We also assessed a perpetual growth rate of 1.5 %.59
After five years, the discount rate was approximated to decrease to around 15 %.
The firm valuation is very sensitive to the three hypotheses the agency took as low,
realistic and high.
The low hypothesis gives a negative NPV of 240,740€. The difference in value between
the realistic estimation (1,043,096€) and the highest one (3,647,432€) is weighted with
a factor 3 which once again stresses the sensitiveness of our model to the number of
contracts and prices.
We have also decided to introduce debt during the 3 rd year with a minimum leverage
of total assets on equity of 25 % to save financing costs and reduce tax. This mix
financing allows us to gain 4 % return on equity at least the 4th year (compared to no
debt introduction) and to have a strong cash flow position throughout all periods of
activities.
These financial figures confirm that our business model will be healthy and
sustainable even on a quite though market.
The management team is sure that the WLM-Agency will be able to capture
additionally value from the top tier of the market pyramid. This way the agency will
switch from a “small fish in a big pound” to a “big fish in a small pound”!
9. EXIT OPTIONS
The founders of the WLM-Agency do neither want to sell their business nor to merge or
to float it. For investors a long term investment will be profitable, so will an exit by
58 See Annex 21 – Example of beta for service companies 59 See Annex 20 and 21
39/40
sale, since the market on work life management is very promising.60 A sale of shares
would be simple, because the WLM-Agency will be a GmbH, a limited company.61
In case the business has to be shut down for whatever reasons total exit is also feasible
in a short term. First of all, the financial engagement of WLM-Agency is low -
especially in the pilot phase, and so is the risk of this business project as such.
Furthermore, the WLM-Agency as a limited company will keep a low risk profile for
the shareholders.
We need to be able to terminate all evergreen contracts without cause on short notice.
There are different categories of evergreen contracts:
1. Employment and the like,
2. Suppliers and customers,
3. Facilities, telephone etc.,
4. Service contracts like cleaning, security, web-services etc.
Employment Contracts: We do not have any direct influence on termination periods of
employment contracts as these are subject to mandatory employment laws. However,
initial termination periods are short, even under German law. Moreover, employees do
not have any protection against dismissal as long as WLM-Agency does not employ
more than 10 full time employees (Minijobers do not count as full heads).
Other Contracts (points 2.to4.): WLM-Agency can not expect to negotiate 30 days
notice for each of these categories. However, for most evergreen contracts it is realistic
to assume that a notice period between 30 and 60 days can somehow be agreed upon
with the partner – if need be, at slightly higher ongoing costs. The real estate market for
larger offices may require long term leases, but small offices such as WLM-Agency
needs after the pilot phase are available under short term notice periods.
We valued two exit scenarios at the end of each of our business milestones. An exit at
the end of the pilot phase is valued at around 25,000€ and a termination in five years
60 See Chapter 3.1. 61 See Chapter 1.2.
40/40
time is valued at 270,000€ (using a 30% discount rate that reflects our WACC adjusted
by a market practice excess spread)
Exit Option EstimateContracts Notice Unit Cost Exit cost Contracts Notice Uni t Cost Exit cost
Employment and the like 7 30 600 4 200 € 22 90 160 239 480 716 € Suppliers and customers 20 30 1 475 29 500 € 205 30 1 475 302 375 € Facilities, telephone 1 90 2 342 7 025 € 2 30 166 756 166 756 € Service contract (Computer rental) 1 90 813 2 439 € 1 90 19 953 59 859 € Exit Cost Estimate 43 164 € 1 009 707 € Present value of the option 25 541 € 271 944 €
Deployment PhasePilot PhaseExit Option EstimateContracts Notice Unit Cost Exit cost Contracts Notice Uni t Cost Exit cost
Employment and the like 7 30 600 4 200 € 22 90 160 239 480 716 € Suppliers and customers 20 30 1 475 29 500 € 205 30 1 475 302 375 € Facilities, telephone 1 90 2 342 7 025 € 2 30 166 756 166 756 € Service contract (Computer rental) 1 90 813 2 439 € 1 90 19 953 59 859 € Exit Cost Estimate 43 164 € 1 009 707 € Present value of the option 25 541 € 271 944 €
Deployment PhasePilot Phase
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Annexes
ANNEX 0 Founders
ANNEX 1 Results of the Online-Survey with Employees
ANNEX 2 Results of WLM-Workshop at the Chamber of Commerce and Industry
ANNEX 3 Results of the Interviews with Companies
ANNEX 4 A - Quotation from CEO & HR Director of DePuy, Johnson & Johnson
B - Extracts from Studies, Business Week and USA Today
ANNEX 5 PEST- Model, Germany
ANNEX 6 Black Market in Frankfurt
ANNEX 7 Prognos AG / BMFSFJ Study
ANNEX 8 Lecture about tax benefits by Dr. Zuber (PCW) during Customer Focus
Workshop 27th October 2008, Mannheim
ANNEX 9 Employees within the scope of national insurance in Metropolregion Rhine-
Neckar, June 2007
ANNEX 10 Members of ZMRN e.V. (Zukunft Metropolregion Rhine Neckar, registered
society)
ANNEX 11 Situation in Metropolregion Rhine-Neckar, June 2007
ANNEX 12 Family friendly Working Conditions in Rhineland-Palatinate
ANNEX 13 Actual Number of Employees in the Metropolregion
ANNEX 14 Employees as Employers
ANNEX 15 A - Interviews with Supply Area Rhine Neckar
B - Companies who confirmed their high interest in future collaboration
C – Quotations of Supply
ANNEX 16 Vision – Mission – Value - Statement of WLM
ANNEX 17 Break Even-, Scenario-, Sensitivity-Analysis, and Risk Mitigation
ANNEX 18 Financial Plans
ANNEX 19 Examples of Prices for Banners on Web Sites Example
ANNEX 20 Default Spread Risk
ANNEX 21 Firm Valuation, NPV of FCF, Example of Beta for Service Companies
Annex 0-1
0. ANNEX 0 THE FOUNDERS
• Myriam Besson Finance
• Renate Echtermeyer Product Management, Key Account Management
• Frederic Jaulent Finance, Supply Management, Strategy
• Elke Lieb Product Management, Marketing
• Sabine Mauderer Law, Strategy
Annex 1-2
3,55%
0
22,26%
36,77%
30,97%
4,52%
1,94%
no r eply < 20 y 20 - 35 y (A2) 35 - 45 y 45 - 55 y (A4) 55 - 65 y > 65 y
1. ANNEX 1 RESULTS OF THE ONLINE -SURVEY WITH EMPLOYEES
Link in page: http://freesurveytoday.com/go/index.php?sid=11142&lang=de
Sign in page: http://freesurveytoday.com/go/admin
Username: emba.wlb Password: r04hge37
Final up-date: 1st November 2008 Size: 317 responses
Participants: BPW (Business Professional Women, MBS Alumni, class mates, colleagues,
family & friends and others)
Age Range: => Representative age-group of working people with dominant private needs
Gender and marital Status: => 87% women, 66% married or living in partnership, 29% single
Income Distribution
Yearly Salary in Euro
31,29%
14,52%
10,00%
7,10%5,48% 5,48%
26,13%
< 40,000 40,000 -
50,000
50,000 -
60,000
60,000 -
75,000
75,000 -
90,000
> 90,000 no reply
Annex 1-3
Industry Branches and Sizes: => Dominant in services and research/university
Company Culture: => Mainly German business style
Industry Branches
5% 1%
41%
5%5%
11%
11%
5%
16% bank / insurance
const ruct ion
services
research / universit y
commerce
indust ry
IT
public service
Ot her
Company Size
41,29%
17,74%16,13%
2,90%
15,81%
5,81%
very small (< 10
st af f )
small (10 - 99 st af f ) middle (100 - 2499
st af f )
big (2500 - 4999
st af f )
coporat e (> 5000
st af f )
no reply
C o mp a n y N a t i o n a l i t y
8 3 %
6 %
11%
Ger man An glo- Saxon Ot her
Annex 1-4
Children : => 47% no children, 46% 1 to 4 children
How much Time during Work for organizing private Issues?
=> in average 26 minutes per day are spent for non business related activities. This equals 92 hours per year, or 11 days per year. Without other breaks i.e. toilette, smoking, coffee, talks.
Age of Children
37 33
47
107
0-3 3-6 6-10 >10
N umbe r of Chi l dr e n
47%
14%
24%
7%1%0%7%
0 1 2 3 4 > 4 no r eply
Private Time during Work
percent 30,00% 22,58% 15,16% 16,77% 3,23%
number or responses 93 70 47 52 6
0 - 10 min 10 - 20 min 20 - 30 min 30 - 60 min > 120 min
Annex 1-5
Time spend for Services
16,77%4,19%
8,06%20,97%
17,10%8,39%
3,55%36,13%
19,35%11,94%
67,74%33,87%
11,94%10,65%
child care
house hold
car w ash
events (party, birthday etc)
holiday, vacation
What costs one Employee per Day?
What does this mean for lost time that employer pay in EURO ?
=> in average 26 minutes per day = 92 hours per year = 11 working days per year (based on 211
working days per year with the cost of 276,- EUR per employee)
Summary: 3.036,- EUR money lost per year per employee!
Which Services needs this Time ?: => Both: individual and family needs
Copyright 2007: http://www.akademie.de
STUNDENSATZKALKULATION
Year/Employee 2007 Person1
Calculation of productive
days in calendar per year 365 Saturday + Sunday 104 Bank Holiday per Year 13 Days of Annual Leave 30 Working Days per Year 218 Statistic Lost Days per Year (Illness, move, council offices, etc.) 3,00% Working Days per Year 211
Calculation of Personal Costs Gross Income per Month (Annual Salary / 4.000,0
Working Time per Week / 40,00 Gross Hourly Wage (w/o wage 23,08 Employer's Contribution for Social Security 19,90% 796,00 Trade Association according Risk Level 1,50% 60,00 Other supplementary charges 0,20% 8,00 Gross Monthly Wages (incl.wages costs) 4.864,00 Gross Hourly Wage (incl. wage costs) 28,06
Total Annual Labor Costs 58.368,00 Personnal Costs per Day 276,02 Real Labour Costs per Hour 34,50 Real Calculation Surcharge per Hourly 49,5
Annex 1-6
Importance of Services
childcare
elder care
pet care
house hold
wash service
ironing
car wash
shopping / beverage
gifts
events (party, birthday etc)
appointments (hairdresser, doctor, cosmetics etc.)
leisure (sport, theater, cinema, concert etc.)
holiday, vacation
not important less important neutral important very important
Services with Intranet
14,52%
8,71%
6,13%
28,06%
34,19%
30,32%
22,26%
34,84%
20,97%
19,03%
25,81%
30,00%
19,35%
child care
elder care
pet care
house hold
wash service
ironing
car wash
shopping / beverage
gifts
events (party, birthday etc)
appointments (hairdresser, doctor, cosmetics etc.)
leisure (sport, theater, cinema, concert etc.)
holiday, vacation
How Important is this Service?
Would you do Online-Booking?: => Caution in online-booking for care-services
How Important is following Criteria?: => Childcare is most sensitive in personal contact for those who have children (*caution: 47% have no child)
Importance for Childcare
internet booking
intranet booking
personal contact
references
costs
flexibility
service at home
service not at home
urgency
service at night
not important less important neutral important very important
Annex 1-7
How Important is following Criteria?: => Household is most sensitive in reliability & quality
How often which Service is used?:=> Childcare, household and leisure
It’s a Benefit if one Agency cares all? => Yes
How many times/year
6
3
15
17
2
gif t s event s (part y, bir t hday et c)
appoint ment s (hairdresser, doctor, cosmet ics et c.) leisure (sport , t heater, cinema, concert et c.)
holiday, vacat ion
Importance for Household
internet booking
intranet booking
personal contact
quality
reliability
references
costs
flexibility
not important less important neutral important very important
How many times/week
1,5
10,5
1,5
wash service ironing car wash shopping / beverage
How many hours/week
6
1
1
3,5
childcare elder care pet care house hold
Annex 1-8
Would you pay more for more Quality?: (It`s expected that care-services are provided in non
commercial style)
One Agency for All Services?
43,87%
29,03%26,77%
yes no no reply
Agree on Quality for Higher Price
14,52%
8,71%
6,13%
28,06%
34,19%
30,32%
22,26%
34,84%
20,97%
19,03%
25,81%
30,00%
19,35%
child care
elder care
pet care
house hold
wash service
ironing
car wash
shopping / beverage
gifts
events (party, birthday etc)
appointments (hairdresser, doctor, cosmetics etc.)
leisure (sport, theater, cinema, concert etc.)
holiday, vacation
Annex 2-9
2. ANNEX 2 RESULTS OF THE WORKSHOP OF WLM-A GENCY AT THE
CHAMBER OF COMMERCE AND INDUSTRY
Kickoff: 23rd September 2008, Chamber of Commerce and Industry, Rhine-Neckar 2PM to
4PM,
Participants: Andrea Kiefer (Chamber of Commerce and Industry, Rhine-Neckar), Ursula
Hornung (John Deere & Company), Armin Krebs (Pfalzwerke AG), Heike Lenz (Roche
Diagnostics GmbH), Bianca Prismantas (MRN GmbH), Renate Echtermeyer (Mannheim
Business School), Elke Lieb (Mannheim Business School)
Subject: Presentation of WLM- Agency in the context of project “Forum Vereinbarkeit Familie
und Beruf” (forum coordination family and career) of the Chamber of Commerce and Industry,
Rhine-Neckar, and the Metropolregion Rhine-Neckar (MRN GmbH)
Workshop: “ Efficient Work Life Management in Companies”, 27th October 2008,
Education Center Dahlbergplatz (ECD) Mannheim, from 10AM to 5PM,
Participants: Andrea Kiefer (Chamber of Commerce and Industry, Rhine-Neckar), Ursula
Hornung (John Deere & Company), Armin Krebs (Pfalzwerke AG), Heike Lenz (Roche
Diagnostics GmbH), Katrin Geeb (MVV Energy AG) Bianca Prismantas (MRN GmbH), Britta
Schnabel (MRN GmbH) Bettina Kosiel (Mannheim Business School) Renate Echtermeyer
(Mannheim Business School), Elke Lieb (Mannheim Business School)
Guests: Dr. Sabine Winkelmann (Mannheim Business School), Dr. Barbara Zuber
(Pricewaterhouse Coopers AG )
Agenda:
1. Introduction
2. Presentation Mannheim Business School, Dr. Sabine Winkelmann, MBS
3. Work Life Management – offer in companies: experience exchange of participants
4. Lecture from Dr. Barbara Zuber, PWC, about tax advantages due the offer of WLB activities
5. Workshops about key points regarding WLM –service offer
Outcome:
Demand on CHILDCARE:
- limited seats available in kindergartens and crèches
Annex 2-10
- for external childcare and day mothers official certifications are needed (Chamber of
Commerce and Industry Rhine-Neckar offers additional day mother education, which is
requested))
- nanny who does in-house care (costs about 1.200,-€/month) and au pairs an official
certification is not necessary, but police clearance certificate and driving licence are requested,
transparency about qualification very important
- emergency care in case of illness or business travel over night
- childcare outside opening hours of kindergarten and school
- accompanying children from kindergarten back home
- shuttle service for afternoon activities
- babysitter with qualification ( i.e. “babysitting diploma” by Chamber of Commerce and
Industry)
- tutoring of homework (qualification: grading system for pupils according their school grades)
- childcare during school holidays, holiday camps, offers important in the beginning of the year
- there are few schools that work with star ranking, offer shuttle service, holiday occupation,
holiday camps, etc.
- childcare on spot during company events
=> in summary: there is a high need of childcare, especially outside the opening hours of
kindergarten and school, high quality and transparency about the quality standards are very
requested
Demand on ELDERCARE
- coordination for qualified eldercare
- information about institutions and laws
- all services around household and administration to support elderly people as well as their
family
- social care (to take elderly people for a walk, reading out books etc.)
- emergency care
- “day mothers” for elderly people
Demand on HOUSHOLD
- all kind of services around household are very important: cleaning, washing, shopping,
gardening, pet care etc.
Annex 2-11
OTHER RESULTS
- demand on information about tax advantages for employees
- demand on information about child friendly institutions (restaurants, shopping centres etc.)
- fixed membership fee for employer, employee pays services directly to supplier
- offer of WLM service platform for all employees available, not only for high potentials due tax
reasons
- ROI (return on investment) tool welcomed
-competition: “PME-Familienservice GmbH”: focus on organization of childcare, time
consuming, complicated payment system, starts now with WLM activities and eldercare
“Betreut.de”, electronic market place to link demand and supply. No quality control, not locally
organized, no exclusivity for companies, available to everybody who registered.
Annex 3-12
3. ANNEX 3 RESULTS OF THE INTERVIEWS WITH COMPANIES
COMPANY Contactname & Function Sales Mio. €
Empl.with children HighPo's Academics Regionality
EmployeeRetention
Competitor Advantage Additional Services
OLHO-Technik oHGIn den Fichten 2432544 Löhne
Karsten Oleff, CEO+49 5731 4807 248date: 6 Aug (Elke)
WorldWide: 1650Germany: 600 (350 W) 87,3 400 20 (3 W) 100 (10 W)
mainly Nordrhein-Westphalen
releave indiv barriers for leadership, reward with personal contacts, individ. Solutions i.e. financial support (mini credit) Salary
Car, pension, stopp with programs like backpain, tennis etc. due to lack of empl. Acceptance. Still fitness center 1 month free (about 40€ per head)
SPORTOMED GmbHWilly-Brandt-Ring 1267592 Försheim-Dalsheim
Thorsten Teschner, CEO+49 172 8684 000date: 6 Aug (Elke)
54 (17W) + 25 (22W) part time (soon 160 due tocompany centralisation) 5 6 3 1 (CEO)
10 (2W) yes, rest Rheinland Pfalz
Leadership style, personal contact
Stability (20y company)high unemployment area
free time, flexible working timeno other
Mannheim Business School gGmbHL 5, 668131 Mannheim
Bettina Kosiel, Director+49 621 181 1480date: 6 Aug (Elke) 22 (19) 3 6 20
Baden-Württemberg no no standard social benefits
DEPUY (subsidiary of Johnson&Johnson)Konrad-Zuse Str. 1966459 Kirkel-Limbach
Kira Goertz, HR, +49 68411893719, date: 19 Aug (Sabine) 200 (ca. 80 W)
not supposed to be public 40 (w) 15 50
all over Germany
high flexiblity at work, social benefits (company pensions scheme, casualty insurance)
well known parent company, high flexiblity at work free access to gym
VOLVO Construction Equipment GmbH & Co.KGMAX-PLANCK-STR. 754329 KONZ
Matthias Keller, HR+49 172 6729372date: 8 Aug (Elke)
1000 (plus 200 interims)100 women 500 100 100 (W)
20 yes, rest Rheinland Pfalz
salary on market standardbranding product, information politicqualification & leadershipmentsocial benefits, canteene, charity, eventstraining & development
blue collar: no problemcritical for middle Mngmt & Ingeneers -> high school marketing
standard social benefits, High Po's courses (7 habits of corvey)
CURRENT STAFF RETENTION & ADDITIONAL SERVICESCURRENT DEMOGRAPHICS
Work Force Council
Current WLB Who caresOutsourcing Serviceplatform
Service Importance (5=important, 1=not important)
% of sales for WLB
€ per year per empl. Total €
Interesting Remarks of Interview Partners
Yes. No negativ impact on service offer. Helps & organizes. no HR
Yes, i.e. moderation
Intranet & hotline-> more security
household: 5child care: 5elder care: 3shopping: 1ticketservice: 0 3.5% 50,-€ 30.000,- €
no no yes Intranet + hotline
household: 4child care: 4elder care: 1shopping: 1ticketservice: 3 500,-
noafter work drink nobody yes
Intranet (more habit), contact button, telephone
household: 5child care: 5elder care: 3shopping: 2ticketservice: 3 1000,-
yes, recently founded. Will be involved in the future.
so far no, but for the future an issue HR
in general conceivable, but it has to be checked whether there is a need (in general employees have their own network) Intranet+hotline
Post services
household: 3child care: 5elder care: 3shopping: 2ticketservice: 1 300-400,-
Ms Goertz worked for a big company just some time ago and said that she is sure that some kind of service platform or hotline would be interesting for bigger companies with a lot of well educated employees that do overtime and live in big cities.
yes, good cooperation §87
future: fitness, sigma green belt for reductiton of absenteism HR yes!
Intranet & hotlineblue collars have no PC
household: 4 (only HighPo's)child care: 5elder care: 5shopping: 4ticketservice: 4
white collar 1.000,-blue collar ??HighPo's 3.000,-
no wide distribution amongst blue collars!in total range from 500 to 3.000
EXISTING ACTIONS ON EFFICIENCY
Annex 3-13
ARKEMA GmbH (Diversified chemicals manufacturer), Tersteegenstr. 28, 40474 Duesseldorf
Hartmut Erhardt, HR-Director, +49-211-4552-336, date: 14 Aug (Sabine)
700 in Germany (at headquarter 50 % women, at plants less)
30 % of employed women have children 5 80
several cities in East und West Germany company pension scheme
it is hard to compete with big companies like BASF
immunisations and other health programs to keep blue colar workers healthy
Dalkia GmbH (Engery Company), Carl-Ulrich-Straße 4, 63263 Neu-Isenburg
Mr. Kruse, HR-Director, +49 172 747019918 August (Sabine) 300 (75 women) 60 unknown 30 unknown
several cities in East und West Germany salary salary
company pension scheme, 50 % of cost for child care (as far as tax deductable), lots of other social benefits
Conuit GmbH (Consultancy), Schleussnerstr. 42 D-63263 Neu-Isenburg
Jörg Uwer, Founder und CEO, +49 06102-...date 20 Aug (Sabine) 20 (3 women)
not supposed to be public
most male employees have children (number unknown), one women has a child 12 to 15 17
Headquarter in area of Frankfurt, further office in Düsseldorf
company pensions scheme, in future: company participation / share
high flexibility, responsibility company pension scheme
MVV Energie AG, Luisenring 49, 68159 Mannheim
Mrs. Geeb, 0621-2903234 HR / responsible for WLB
6300 employees , (1600 in Mannheim) 25% women, 2,3 Mrd.
in Mannheim: 727 with family, 120 with children
Headquarter in Mannheim, decentral organization
salary according senority, flexible working time, canteene, see also add. Services Audit "Familie und Beruf"
1/2 jobticket organisation and contingent in childcare institution, (parentscoop. for childcare under 3) parents-child office, cooperation with the city of Mannheim, health management, relocation service and cooperation with PME familyservice for high potencials only, start project for elder care and need of care
BakerMcKenzie (Law Firm), Office Frankfurt
Mrs. Trillig HR director Tel. 069 - 299086 (Sabine) 450 in Germany
40% Women, 30% of them with children 180 200
4 cities in Germany
education and professional training, professional development plan, child care support and cost sharing
education and international orientation
cost reduction on fitness studio, special insurance package, the higher position and income the higher the benefits
§87 absenteism HR yes! no PC ticketservice: 4 3.000,- 3.000
yes, gets involved no nobody no no neednot relevant for company WLB not crucialWLB are seen as privat issue.
Mr. Erhardt thinks that rekruiting and retaining talents is not a question of WLB but of offering career perspective, job rotation, etc.
Yes, is involved.future: evt. Kindergarten HR
no, comany too small
no, company too small
household: 3child care: 4elder care: 5shopping: 1ticketservice: 2 WLB privat issueWLB privat issue
Mr.Kruse worked in a company with 7,000 employees before and thinks that companies of that size are interested in a service platform/hotline.
No No Nobody.
yes, if number of female employees would increase significantly. Intranet + hotline
household: 3child care: 4-5elder care: 3shopping: 1-2ticketservice: 1
for employees with annual salary of 50,000 € company could imagine to spend 2-3 % of salary
Mr. Uwer said that small companies like his own prefer individual solutions for private issues. Bigger companies rather need standardized solutions.
yes yes HR
yes quality is very important
intranet / internet + hotline
no grades! Important are all services which cannot be relocated in the evening
50,-€ per employee will be still too much
Mrs. Geeb knows about our project through CC.M, she will participate in our workshop, interesting is, that the cooperation with our competitor PME familyservice is not succesful adopted.
no
yes (child care support,Telejob HR yes
Intranet (no need for hotline if intranet platform)
house hold: 4 child care :5 elder care: 3 shopping service 3 ticket service 2
15 - 20 T €/ year for headquarter F. (100 layer)
WLB platform is not an important competitive advantage for recruiting, but nice to have. Very interested to use our WLB platform. Ask for further contact in the near future.
Annex 4-14
4. ANNEX 4-A QUOTATIONS FROM CEO & HR D IRECTOR OF DEPUY, A
JOHNSON & J OHNSON COMPANY
Johnson & Johnson company, ranked as the world's most respected company by Barron's Magazine (September 2008). Its common stock is a component of the Dow Jones Industrial Average and the company is listed among the Fortune 500.
Harald F. Stock, PhD., Chairman & Managing Director DePuy Germany, a Johnson & Johnson company
“The one and only future competitive advantage will be to attract and retain a new generation of talents who value work-life-balance equally high as they pursue career opportunities. For companies to offer them options to lead a family life AND have a
successful professional career will be crucial. Such a service will be a key cornerstone!”
Kira Goertz, HR Manager DePuy Germany, a Johnson & Johnson company
“In the past, the candidates most frequently asked questions about their career opportunities in our company, but today, these questions focus more and more on their work-life balance. That shows quite clearly that both, their job and their families, are highly important to them. By expressing a clear message like that, the candidates will not ruin their careers. Quite on
the contrary, they will display strength as they prove that their personal environment impacts their career just as much as good professional networking for example.
These candidates, to my mind, are the ones that we ought to attract by innovative concepts!”
Annex 4-15
ANNEX 4-B EXTRACTS FROM STUDIES, BUSINESS WEEK , AND USA TODAY .
“Of the 37,000+ undergraduates surveyed by Universum this year, the No. 1 career goal was to balance personal and professional life. Building a sound
financial base ran a distant third.” “Bait for the Brightest— No time clocks, please. Recent grads don’t mind long hours—if they
can work them on their own time.”
BusinessWeek, September 18, 2006. The Bottom Line on Next Gen Workers. ______________________________________________________
“Unlike boomers who tend to put a high priority on career,
today's youngest workers are more interested in making their jobs accommodate their family and personal lives. They want jobs with flexibility, telecommuting options and the ability to go
part time or leave the workforce temporarily when children are in the picture.”
USA Today, July 2007 ______________________________________________________________________
Employment potentials IW Köln 2008:
- Existing potential through black market legalization and realization of demands
- Scenario analysis resulted into minimum 177,000 and maximum 766,000 full
employment. Realistic is about 300.000 household employees (= mean EU-15)
Benchmarking study, IZA Bonn / ExAkt Berlin 2007
- Germany can learn from good experiences with agencies in France and Belgium
- Supply of services through service checks should be in the centre of promotion
Instruments of employment politics, Uni Duisburg / Essen 2007
- Promotion of setting ups of self-employment business activities
- Financial government support does not reach families and aged people, solutions are
the transfer through check service ticket system
- Subsidies mainly for service agencies
Municipal Praxis, ISS Frankfurt a.M. 2007
- good concepts are existing often in combination with honorary office
- supply offers are existent however absence of aggregated platform
Accent study: Expectations and Achievement: Empowering Women from Within
According an online survey of 2,246 executives from middle and upper management,
German mothers want to go back to work as soon as possible after the child birth. 91%
Annex 4-16
believe that it would be possible to combine their family life, children and job
requirements. The same opinion are only 41% in Great Britain and all the same 70% in
the USA.
______________________________________________________________________
“Most of HR departments are not prepared for the new demographic changes. This HR
manager esteem their own ability dealing with aging staff quite low: on a scale from 0 to 13
they rate their current competence with 2. That’s really low in view of the urgency of the
subject, because they want already tomorrow deal with high priority the consequences of our
aging and reducing population. There is no other resort of HR activities that german personal
manager find more important than the demographic change. On the second priority place we
find talent management and the introduction of learning organisations.”
These are the most important results of the study „Creating People Advantage. How to
address HR Challenges worldwide through 2015“ that was carried out from Boston
Consulting Group (BCG) and World Federation of Personnel Management Associations
(WFPMA) and presented mid April 2008 in London for the first time.
The head of the study, Prof. Dr. Rainer Strack from BCG-office in Düsseldorf, and his
colleagues asked in an online survey worldwide about 4.741 manager, mainly from HR
departments. This survey was completed with 220 HR managers in deep-interviews. In
Germany participated on the interviews the HR directors Matthias Malessa (Adidas),
Zygmunt Mierdorf (Metro), Ulrich Weber (RAG), Ernst Baumann (BMW) and others. Other
exerpts from business journals and benchmark studies confirm the change in HR recruitment
and their consequences.
Annex 5-17
5. ANNEX 5 PEST - MODEL
P olitical
Socio-cultural
E conomical
- Federal, parliamentary, representative democratic republic
- Federal states and federal republic have legislative power
- enhanced income tax subsidies and employment laws for WLM services
-female chancellor and female minister for family affairs leads to political environment that supports working parents
- reversed demographic pyramid
- lowest birth rate in Europe in 2006
- lowest rate for working women in Europe
- increasing number of female high potentials
-lack of qualified employees / war on talents due to demographic developments and unsatisfying German education system
GERMANY
- e-business will increase
- use of internet will increase
Technological
- Recession expected, so that efficiency of humam resources gets important
- due to cost cutting trend to outsourcing
- option to reduce employee’s taxable salary up to 4,000 EUR by ordering WLM services
- option to reduce employee’s income tax up to 2,400 EUR by ordering WLM services
Annex 6-18
6. ANNEX 6 BLACK MARKET IN FRANKFURT
www.joerg-alt.de/Publikationen/Materialanlagen/04Statistik.doc
Summary: In 2001, the Police in Frankfurt controlled 350 households. More than 200
households employed foreigners illegally.
…“Ein weiteres Indiz bezüglich der Verbreitung illegaler Ausländerbeschäftigung in
Privathaushalten ist die 'Trefferquote' einer Razzia, die die Frankfurter
Staatsanwaltschaft durchführen ließ: 350 Wohnungen und Häuser wurden untersucht,
über 200 illegal beschäftigte Haushaltshilfen wurden noch am selben Tag ausgewiesen,
gegen 214 Familien wird ermittelt, d.h. mehr als jeder zweite Haushalt (61 % aller
kontrollierten Haushalte) beschäftigte illegale ausländische Haushaltshilfen. Freilich
sind diese Zahlen per se nicht sonderlich aussagekräftig: Es muss ja bedacht werden,
dass etwa im Bereich der illegalen Haushalts-Putzhilfe hier tätige Personen bis zu sechs
Arbeitsplätze zugleich bedienen, während im Bereich der Alten- und Krankenpflege bis
zu zwei-drei Personen nach einem Rotationssystem ein und dieselbe Person betreuen
(vgl. IV/1.4.).“
Annex 7-19
7. ANNEX 7 PROGNOS AG / BMFSFJ STUDY
Calculation about Costs and economic Benefits for family friendly Activities
Some results:
- a company that does not offer work life balance activities, having 1,500 employees
(45% women ratio), results in about 696,000€ costs per year for parental leave.
- However if the company offers total investments of about 304,000€ for: consulting
and stay-in-contact (about 81,000€), flexible working time (about 10,500€), installation
of 5 home office jobs per year (about 30,000€), and 30 childcare places for own
expenses (about 182,500€) – then the investments for parental leave are reduced to at
least 156,500€. The company saves maximal 235,500€. (Expenses for which no
working performance is delivered) www.work-and-life.de
Annex 8-20
8. ANNEX 8 LECTURE ABOUT TAX BENEFITS BY DR. ZUBER (PCW)
DURING CUSTOMER FOCUS WORKSHOP, 27TH OCTOBER 2008,
MANNHEIM
Tax Advantages for Companies due to the Offer of family friendly Activities for their
Employees:
Example for the comparison of salary increase and childcare subsidy (2 children)
Annex 8-21
Calculated on a base salary (gross) of 2.500€ per month, an investment of 200€ in
childcare subsidy, instead of an equivalent pay raise, results in a benefit of 112€ for the
employee and 25€ for the employer, per month.
Example for the comparison of salary increase and childcare subsidy (2 children)
Calculated on a base salary (gross) of 5,400€ per month, an investment of 200€ in
childcare subsidy, instead of an equivalent pay raise, results in a benefit of 111€ for the
employee and 0€ for the employer, per month.
Annex 9-22
Agriculture & ForestryProducing Industry
Commerce, Gastronomy, and
TransportOther Services
Total Branches of Industry **
IHK (chamber of commerce and industry) Rhine-NeckarHeidelberg, City 281 15.018 13.560 46.669 75.597
Mannheim, City 356 52.358 37.686 68.245 158.785
Neckar-Odenwald-District 408 17.880 6.289 15.211 39.791
Rhein-Neckar-District 1.123 50.558 30.495 58.126 140.315
Total 2.168 135.814 88.030 188.251 414.488
IHK PfalzFrankenthal (Pfalz), City 133 6.784 3.170 5.447 15.534
Landau in der Pfalz, City 91 3.281 4.706 10.687 18.767
Ludwigshafen am Rhein, City 383 46.042 10.606 29.618 86.652
Neustadt an der Weinstraße, City 252 3.225 3.989 7.427 14.952
Speyer, City 56 6.300 4.926 11.460 22.742
Bad Dürkheim 835 7.873 6.712 11.995 27.417
Germersheim 538 19.937 7.858 9.935 38.271
Südliche Weinstraße 784 7.454 5.847 8.817 22.905
Rhein-Pfalz-District 2.260 6.467 6.547 7.031 22.308
Gesamt 5.332 107.363 54.361 102.417 269.548
IHK Darmstadt
Bergstraße 792 31.898 20.969 34.477 88.143
IHK Rheinhessen
Worms, City 222 8.624 7.067 10.847 26.771
Metropolregion 8.514 283.699 170.427 335.992 798.950
** Including employees without indication about industrial sector
Administrative District
9. ANNEX 9 EMPLOYEES WITHIN THE SCOPE OF NATIONAL
INSURANCE IN METROPOLREGION RHINE -NECKAR , JUNE 2007
Population Forecast
97%
98%
99%
100%
101%
102%
103%
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Metropolregion Rhein-Neckar Westdeutschland Deutschland
Annex 10-23
2006 Sales in Mio € Number of Employees in ZMRNUnternehmensgruppe Freudenberg,Weinheim 4.837 33.420Wincanton GmbH,Mannheim 2.600 30.000Südzucker AG,Mannheim/Ochsenfurt 5.347 19.903SAP AG,Walldorf 9.400 14.200TÜV Pfalz Anlagen und Betriebstechnik GmbH,Ludwigshafen 796 9.227Roche Deutschland Holding GmbH,Roche Diagnostics GmbH,Mannheim 3.715 7.044MVV Energie AG,Mannheim 2.275 6.338Röchling-Gruppe,Mannheim 105 6.041SV Sparkassen Versicherung,Mannheim 2.800 5.000Universitätsklinikum Mannheim,Mannheim 250 4.470MLP AG, Wiesloch 588,1 4.306Pepperl & Fuchs GmbH,Mannheim 310 3.450SRH Holding, Heidelberg 170 2.700TÜV Süd Baden-Würtemberg GmbH,Mannheim 199 1.625Sparkasse Heidelberg,Heidelberg 5.543 1.300Saint-Gobain Isover G+H AG,Ludwigshafen 361 1.213Siemens AG Niederlassung Mannheim,Mannheim 350 1.160Technische Werke Ludwigshafen am Rhein AG (TWL),Ludwigshafen 213 1.052Sparkasse Rhein Neckar Nord,Mannheim 4.349,90 993Pfalzwerke Aktiengesellschaft,Ludwigshafen 1.023 787SAS Institute GmbH,Heidelberg 152 730Sax + Klee GmbH Bauunternehmung,Mannheim 65 570Rhein Chemie Rheinau GmbH,Mannheim 302 550ProMinent Dosiertechnik GmbH,Heidelberg 91 515Quoka Verlag GmbH,Lampertheit no information 505Volksbank Rhein-Neckar eG,Mannheim 2.126 439Paul Fierek Spedition GmbH,Weinheim 20 150MTG Mannheimer Transport Gesellschaft Bayer, Mannheim 23,1 150WOB AG,Viernheim 79,3 102Odenwälder Kunststoffwerke Gehäusesysteme GmbH,Buchen 13 81SHE Informationstechnologie AG,Ludwigshafen 9 80Palatin Kongresshotel und Kulturzentrum GmbH,Wiesloch 4 69Weldebräu GmbH & Co. KG,Plankstadt 11 45zetVisions AG,Heidelberg no information 40Müllerdruck Mannheim,Mannheim 4 35Planungsbüro PISKE,Ludwigshafen 2,2 20
10. ANNEX 10 MEMBERS OF ZMRN E.V. (ZUKUNFT
METROPOLREGION RHINE NECKAR , REGISTERED SOCIETY )
Annex 11-24
42%43%43%44%44%45%45%46%46%
30.6.199
9
31.12.19
99
30.6.200
0
31.12.20
00
30.6.200
1
31.12.20
01
30.6.200
2
31.12.20
02
30.6.200
3
31.12.20
03
30.6.200
4
31.12.20
04
30.6.200
5
31.12.20
05
30.6.200
6
Metropolregion Rhein-Neckar Westdeutschland Deutschland
Employees within the scope of national insurance in Metropolregion Rhine-Nackar, June 2007
2005 2006 2007
12%
0
100.000
200.000
300.000
400.000
500.000
600.000
700.000
800.000
900.000
1 2 3
Year
Num
ber of E
mpl
oye
es
42%
44%
46%
48%
50%
52%
Jan
05
Mrz
05
Mai
05
Jul 0
5
Sept 0
5
Nov 0
5
Jan
06
Mrz
06
Mai
06
Jul 0
6
Sep 0
6
Nov 0
6
Jan
07
Metropolregion Rhein-Neckar Westdeutschland Deutschland
6%
7%
8%
9%
10%
11%
12%
13%
Jan 05
Mrz 05
Mai 05
Jul 0
5
Sept 05
Nov
05
Jan 06
Mrz 06
Mai 06
Jul 0
6
Sep 06
Nov
06
Jan 07
Metropolregion Rhein-Neckar Westdeutschland Deutschland
11. ANNEX 11: SITUATION IN METROPOLREGION RHINE -NECKAR ,
JUNE 2007
Women ratio amongst employees within the scope of national insurance
Unemployment rate
Women ratio within unemployment rate
Annex 12-25
12. ANNEX 12 FAMILY FRIENDLY WORKING CONDITIONS IN
RHINELAND -PALATINATE
http://www.familienfreundlichkeit-rlp.soziologie.uni-
mainz.de/Dokumente/executive_summary.pdf
Annex 13-26
Generation Veteran Boomer Xer Generation YMillennial
Leadership Hierarchy Consensus Competence Pulling together
Feedback No news is good news
Once a year withdocumenta-tion
ATM-Interrupts and asks how they are doing
“Gamer Generation”—touch of a button; 500 X
Work Ethic Work hard, save money;
what is play?
Work hard; play hard; worry about
money
Work hard, if it doesn’t interfere with play; save
money
Good grades; make others pay; save money
Balance Don’t quite get it
Sandwich generation Want balance now Need flexibility to create it
Generation Veteran Boomer Xer Generation YMillennial
Leadership Hierarchy Consensus Competence Pulling together
Feedback No news is good news
Once a year withdocumenta-tion
ATM-Interrupts and asks how they are doing
“Gamer Generation”—touch of a button; 500 X
Work Ethic Work hard, save money;
what is play?
Work hard; play hard; worry about
money
Work hard, if it doesn’t interfere with play; save
money
Good grades; make others pay; save money
Balance Don’t quite get it
Sandwich generation Want balance now Need flexibility to create it
13. ANNEX 13 ACTUAL NUMBER OF EMPLOYEES IN THE
METROPOLREGION
Metropolregion Rhine Neckar 2006, total population 758.458Age
Veterans 63-81 20.000Boomers 44-62 260.000GenXers 29-43 310.000Millennials 6-28 160.000
Source: MRN Wirthsaftsmontoring
Birth Year1927
Birth Year 2002
Birth Year 1946
Birth Year 1965
Birth Year 1980
Veterans
1927 to 1945
Boomers
1946 to 1964
GenXers
1 965 to 1979
Millennials
Generation Y
1980 to 2002
100.000
200.000
300.000
400.000
Source: MRN Wirthsaftsmontoring
Birth Year1927
Birth Year 2002
Birth Year 1946
Birth Year 1965
Birth Year 1980
Veterans
1927 to 1945
Boomers
1946 to 1964
GenXers
1 965 to 1979
Millennials
Generation Y
1980 to 2002
100.000
200.000
300.000
400.000
Annex 14-27
14. ANNEX 14 EMPLOYEES AS EMPLOYER
Private households as employer
- The number of employment within the scope of national insurance stuck for
years in 35 000 among 6 400 so called Mini-jobs up to 400 Euro.
- Home help are required only for 4 to 5 hours per week.
Gap between potential and actual utilization
Annex 14-28
- 11% of households (about 4.5 Mio) have a paid ‘home help’
- further 24% could imagine so
Barriers not to use a home help (blue: would not use this service, orange: would
use this service in future):
1 – I do not need help for such work, my family members help
2 – I can do the necessary work for my own
3 – a external help is too expensive
4 – I prefer to do everything alone
5 - I don’t want to have a foreigner in my household
6 – the whole organizational expenditure is not profitable for me i.e. to look for
somebody, the payment etc.
7 – I am afraid about the administration needs from institutions and departments
8 – I don’t have time to look after a suitable person for help
9 – I cannot find somebody suitable
Source: Allensbacher Archiv, IfD-Umfrage 10015, Januar 2008
Annex 15-29
Supplyer / Organisation Services costs employees qualification notes
www.m-r-n.com all types of childcare direct contact,
internetportal to link creche, kindergarden offer of future collaboration
demand with supply, nanny company workshops
(search engine) babysitter
Chamber of Commerce,Mannheim homework
Metropolregion Rhein Neckar schools
( still non profit) holiday camps
could be future supplier
Familiengenossenschaft e.G. childcare, nannys, urgency service
Metropolregion Rhein Neckar
B2B, direct support to
member companies
daymother association
www.familienservice.de childcare, nannys, babysitter allocation service fixed qualificated biggest competitor
B2B serviceprovider company own kindergarden paid by company, individual staff, personal
interregional, Austria, Swizz elder care services by search check
references with a lot of big homecare employees additional
companies concierge services qualification
coaching, consulting services
Childcare
certification by youth welfare offices
special nanny/ day mother qualification programm
babysitter diplom
organized in collaboration with companies
15. ANNEX 15 - A INTERVIEWS WITH SUPPLY AREA RHINE NECKAR
Annex 15-30
Supplyer / Organisation Services costs employees qualification notes
www.asl-rhein-neckar.de All services around houshold 29,99€ / h one-time fixed clearence phone or e-mail
Tel. 06222 / 768062 Child care 21,99 / h regulary cerificate contact on e-mail
Mob. 0177 / 797 1108 Elderly care (not nursery services) 25,99 / h weekend personal check with prompt reply
Serviceprovider B2C Home sitting incl. environment phone call with the head
Franchise Pet sitting brokerfees: and home office & Rhine Neckar
interregional in 30 cities Private Concierge Service 390,-€ - 590,-€ and home potential future supplier!
interest in colaboration
www.diehaushaltshilfen.de Cleaningservice (B2B and B2C) 16,-€ / h fixed clearence contact on phone
Tel.06202-9259575 Homecare (cleaning, washing, ironing 15,-€ / h (20h) insurances certificate
Serviceprovider cooking , shopping, errands) 2,-€ weekendsupl. personal check main demand in
mainly B2C, some B2B Childcare, Babysitting, Homework 3.80€ allocation cleaningservices
(Offices,medical practices) Eldercare (without nursery service) less childcare
Franchise, 16 partners Shoppingservice, Conciergeservice potential future supplier!
covers Rhine -Neckar aera in Gardening, Winterservice, Reparation interest in collaboration
20 cities! Petsitting
Homesitting
www.myservicecompany.de Homecare (cleaning, washing, ironing, no availability on
Tel. 06204 / 918396 carwash, shopping, cooking, errands) phone, no answer
Mob. 0178 / 8267521 Homesitting machine
Serviceprovider B2B / B2C Petsitting contact on e-mail
regional Rhein-Neckar Gardening no feedback
broad serviceoffer Leisureservices (partyorganisation, according later contact
presents, tickets, Restaurantreserv.) no interest for colaboration
Travelservices (holiday, rent a car,
hotel etc.)
Eldercare (no medical care!)
B2B services: Cleaning, Travelservices
Partyorganisation, Relocation, Office-
and Marketing services..
Provider of bundled services 1/2
Annex 15-31
Supplyer / Organisation Services costs employees qualification notes
www.notmütterdienst.de childcare, nanny 12,50 / h freelance qualification (phone contact)
Familien- und Senioren- eldercare 100,-€ all day depends on 24h hotline!
service.eV, member of housecare (i.e. in case of illness) need
Deutscher Paritätischer familysupport personal future supply source in
Wohlfahrtsverband check case of emergency
Organisation, which
arrange temporary urgency and
and bridgeover services
non profit
www.betreut.de childcare, nannys, homework depends on depends on no quality only via internet
member of "Erfolgsfaktor babysitting agreement individual check, just link of
Familie", TÜV certification eldercare agreement supply and demandfuture supply source,
Internetplatform to link petsitting but transparence to contact day mothers,
demand and supply , 55.000 members due user grading babysitters, etc. but
registration is necessary system qualification has to be
registration is gratuit but for use improved by WLM-Agency
membership fee between 9,-€ / 29,-€
www.diefamilienagentur.de childcare, au pair, brokerfee 1.5 / 2x fixed qualification via internet or hotline
Internetplatform homecare (including all services) of monthly pay roll employees depends on (contact on phone)
to link demand and supply eldercare 23,80€ / h for direct i. Frankfurt individual
interregional service need potential future supplier
direct service in the area of personal interest in colaboration
Frankfurt and Taunus establishment of local
organisation of cheaper branch in Rhine-Neckar
est europeen employees possible
www.haushelden.de childcare, babysitting no qualification only via internet
Internetplatform eldercare check future supply source, but
to link demand and supply homecare, gardening qualification has to be
interregional improved by WLM-A.
Provider of bundled services 2/2
Annex 15-32
www.deutsche-seniorenbetreuung.de24h of nursery service and elderly care broking of direct phone contact
contact :089 / 203 210 7 - 0. german and potential future supplyer!
Mr. Meyer east european interest in colaboration
staff
www.pflegeagentur24.de 24h of nursery service and elderly care 49,50€ per day, 1485,-€ perbroking of certification basing
montzh german and on individual need
east european
staff
Supplyer / Organisation Services costs employees qualification notes
www.caretaker.de different concierge services: company pays monthly direct phone contact
B2B concierge services employee concierge services with a fee for allocation of not open for giving
Hamburg, München, Stuttgart, very broad offer to cover all needs concierge service detailed information
Berlin, Düsseldorf, Kiel of employees in WLB, including employee pays services competitor !!
open to go under contract in childcare
Mannheim
(clients: DB, T-mobile)
www.cleanpark.de
car wash service chain
Rhein Neckar aerea,
and interregional
www.autowaschen.de
internet portal to find
local carwash services
www.branchen-info.net
internet portal to find
local car wash services
www.pfitzenmeier.de high quality fitness studios with
12 branches in Rhein-Neckar spa area and good services
B2B contracts (personal experiance)
Supply for Elderly Care
Car Wash
Fitness
Concierege services
Annex 15-33
"Shirtrunner"
local Serviceprovider,
fetch-and bring service
www.Gemüsekiste.de biological vegetables and fruits
Internetplatform, interegional
www.dirksbiokiste.de biological vegetables and fruits
online shop, Rhein Neckar
www.obstline.de fresh fruits, delivered to employees
onlineshop, interregional
focused on B2B
www.bio-logisch.es bio food
onlineshop interegional
www.bauckhof.de demeter / bio food
onlineshop interegional comprehensive product offer
www.obstkiste.de fruits
onlineshop interregional
www.aqualieferung.de drinks
onlineshop interregional
www.getränkesurfer.de drinks
internetportal to find
local drink supplyer
Food / Shopping Services
Cloth Washing and Ironing
Annex 15-34
ANNEX 15 B - COMPANIES WHO CONFIRMED THEIR HIGH INTEREST IN
FUTURE COLLABORATION WITH WLM-A GENCY:
www.asl-rhein-neckar.de
Service company offers services around household, child care and elderly, franchise concept with 30
franchise partners in Germany Ccontact with Mrs. Octavia Sauer)
www.diehaushaltshilfen.de
Service company offers services around household, child care and elderly, franchise concept with 20
franchise partners in Germany, just started in the Rhine-Neckar aerea with main focus on services around
household (Contact with Mrs. Stoiber)
www.diefamilienagentur.de
Service company offers services around child care, elderly care and household. Fixed employees in the
area of Frankfurt and Main-Taunus to provide services on a hourly base. Broking of East European staff
and au pairs, all over Germany. Possibility to open a branch in Rhine-Neckar area. (Contact with Mrs.
Kubis)
www.deutsche-seniorenbetreuung.de
Service company offers mainly care and nursery services for elder people. Broking of East European
staff. (Contact with Mr. Meyer)
www.persigno.de
Service company, offers services around child care, elderly care and household. Located in Berlin. Fixed
certified employees available on a hourly contract. Award of best house cleaning company. (Contact with
Mrs. von Gierke)
Annex 15-35
ANNEX 15 - C QUOTATIONS OF SUPPLIERS IN AREA RHINE
NECKAR
“We just discussed about our next strategic steps in entering directly in contact with companies to offer
our services”
Christiane von Gierke, Manager of Persigno GmbH, Service provider company, Berlin . - Potential future
supplier.
“ We have a growing request of our services from persons, who have to manage the balance between
their professional live and their private live”
Monika Müller, ASL GmbH, Service provider company with franchise partners all over Germany. -
Potential future supplier.
„Ursula von der Leyen awards the 12 best projects of the programm „Company family – innovation
through family supporting services“ - Family supporting services create dividends!“
Newsservice, Berlin 08.04.2008, Bundesministerium Familie, Senioren, Frauen und Jugend
Annex 16-36
16. ANNEX16 COMPETITIVE COMPARISON VERSUS WLM-A GENCY
*low, **medium, ***good, ****excellent
Company Exclusivity Local Excellence WLM Service Offer Ease of Handling Quality Payment system
WLM Agency **** **** **** **** **** ****Electronic Marketplace only available for strong local focus, bundle of WLM services quick and easy, per mouse- high quality due to clearly simple,
companies customer proximity childcare, elderly care, click and hotline,
high quality due to clearly defined quality standards fixed membership fee for
under contract, household services preselection + control of and quality control companies,
B2B certified service poviders employee pays services
PME Familienservice GmbH **** *** ** ** ** **Consulting only available located in focus mainly on childcare, time consuming due to quality standard according complicated
Service placement for companies 26 cities in own kindergartens, extensive consulting before individual demand credit point system,
under contract, Germany, Austria organize nanny education, service placement lack due missing competition company pays for consulting
B2B Switzerland starts elderly care, WLM and service placement,
employee pays services
directly to the provider
Besser betreut GmbH * * ** ** * ***Electronic Marketplace available for all over Germany childcare, elderly care permanent service offers no quality control simple,
everybody, pet care, after registration, contact no quality standards monthly user fee,
B2C no houshold services to service provider via payment of
email, no hotline, service provider directly by users
process of selection difficult
Caretaker GmbH **** no information ** no information ** no information
Concierge System only companies present in 5 cities no specialisation on WLM, inhouse concierge system quality of WLM not reliable fixed payment for allocation
under contract, in Germany offices, estates, seniors. (no further information) due to missing experience of concierge system,
B2B employees, neighbor ship in this area payment of provided services
Public Institutions * **** * ** ** **(i.e. municipal kindergarten) available for strong local focus no bundle of WLM services, selection process difficult, quality standard depends on complicated payment system
everbody, B2C / B2B focus on individual services limited availability institution and region, due to the mixture of
very small offer of like i.e. childcare suffer due to lack of finance public and individual
company contingents payment systems
Black Market * **** * * * *available for strong local focus offer of individual services, time consuming quality standard depends on payment directly,
everybody, B2C, mainly housecleaning limited availability individual skills, no reliability legal risks
legal risks lack of certification and control
Annex 17-37
17. ANNEX 17 VISION – MISSION – VALUE – OF THE WLM-A GENCY
Our Vision
Our Work-Life Management-Agency enables companies to make a difference in being an
attractive employer on the labor market. We support the company's efforts in hiring and
retaining high potential employees. On short term we increase efficiency and effectiveness of
employees, and we enhance sustainable economic benefits for the company's business profit.
Our Mission
Our first responsibility is to deliver WLM services, with the highest speed, quality, and
reliability to companies through various service suppliers, contributing to the productivity and
health of its employees. We combine regional service suppliers with surrounding clients who
want to offer Employee Assistance Programs to their workforce. We are exclusive and
specific in our service portfolio.
Our Value
We share our clients' commitment to excellence. We appreciate that each of our partnership is
unique and requires the balance of proven strategies, creative thinking and a tailored plan. Our
innovative and unique programming design features provide our partners with leading edge
approaches necessary to solve the complex issues related to the design, implementation and
management of a service line of distinction. Our partners enjoy the benefit of working with
the WLM-Agency, because strong employer branding is an essential asset in its “war for
talent”.
Annex 18-38
18. ANNEX 18 BREAK EVEN-, SCENARIO -, SENSITIVITY -ANALYSIS ,
AND RISK M ITIGATION
BREAK EVEN ANALYSIS
Using our base scenario we can project our revenues from “all markets”, our cost functions and the progression
of our net income. Using this “accounting” view we determine a break even of 130 sales of contract and a
payback period of less than four years. Taking the time value into account will lead to a different break-even
analysis (see sensitivity analysis).
Our costs are mainly composed of salaries (WLM CC services) on the one hand and on investment on the other
one (e-platform and Knowledge center). We can notice that our investment policy should start getting its return
back in the fourth to fifth year were service costs starts to growth slower than revenues.
We expect a compounded growth in revenue of around 300% during the first four years and much lower rate of
growth during the fifth year to eventually turn to steady pace of 1,5% per annum later on. We actually foresee a
more mature and competitive market in six to seven year time. This is the reason why our strategy roadmap is
pointed toward “high flying” brick & mortar services after five year of service brokerage. In this top pyramid
segment, services are broader, more customized and the market is global (transnational).
-8 000 €
-6 000 €
-4 000 €
-2 000 €
- €
2 000 €
4 000 €
6 000 €
8 000 €
10 000 €
6 20 42 129 205
Thousands CUM REVENUES (€)
CUM COSTS
Cum Net Income
Polynomial (CUM COSTS)
Polynomial (CUM REVENUES (€))
Annex 18-39
From an equity owner viewpoint we are interested in a payback period or break-even analysis based on a more
accurate cash analysis or even on a discounted cash analysis (see sensitivity analysis).
Our business starts to generated a positive and growing free cash flow during the fourth year, the payback period
is 4,3 years on the basis of the cash generated, it is five years when taking into account the time value (see firm
valuation for detail of the NPV computation).
Figure 2 WLM Free Cash Flow Figure 1 WLM Cumulative FCF
Base option
Free Cash Flow
-600
-400
-200
-
200
400
600
800
1 000
1 2 3 4 5 6 7
Thousands €
Years
Base option
Free Cash Flow
-600
-400
-200
-
200
400
600
800
1 000
1 2 3 4 5 6 7
Thousands €
Years
Base option
Cumulative Free Cash Flow
-600
-400
-200
-
200
400
600
800
1 000
1 2 3 4 5
Thousands €
Years
Base option
Cumulative Free Cash Flow
-600
-400
-200
-
200
400
600
800
1 000
1 2 3 4 5
Thousands €
Years
Annex 18-40
SCENARIO ANALYSIS
To anticipate on various conditions as well as to understand the profitability limits of our business we elaborated
three different business scenarios, each with its own costs, investment timing and amounts as well as funding and
marketing execution programs.
The first scenario (or high growth hypothesis) made an emphasis on a steep and strong growth rate during the
first five years. To cope with this environment the number of employees in sales, supply and in the customer care
center is important. Revenues will sore to 13M€ in the fifth year, 3.5 times the sales of our base case.
Cumulative Free Cash flow reaches 2,5 M€ and the business is valued at around 3,6 M€ (Net present value).
The second scenario (or base case) is an ambitious development of our business model yet realistic. We have
chosen this scenario as the red line of our business plan and we strongly believe we can achieve the development
presented. Revenues reach 3,9 M€ in the fifth year, cumulative free cash flow reaches 0,8 M€ and the business is
valued at around 1 M€.
The third scenario (or low hypothesis awareness) take into account a slow market penetration and reflects a
lower pace of “family awareness” than we expect. This scenario leads to destruction of value creation under the
assumption we made, yet it would be viable and of a better value creation under a downsized cost structure (i.e.
full roll out with mini jobs, less IT investment). Revenues amounts for 1,5 M€ in the fifth year, cumulative FCF
reaches 115K€ and the business as a negative NPV of 240K€.
We can notice that our growth hypothesis do not proportionally unfold an equivalent free cash flow as our base
scenario (3,5 times the revenue and only 2 times the value). As our model is labor intensive at this stage, a
particular attention shall be given to master our growth. Figure 3 below shows the different business resources
for each scenario and the global costs of each function. We made the same assumptions on pricing for the three
scenarios
Free Cash Flow
-1 000
-500
-
500
1 000
1 500
2 000
2 500
3 000
1 2 3 4 5 6 7
Thousands €
Years
Free Cash Flow Base option
Free Cash Flow High Growth
Free Cash Flow Low Awarness
Free Cash Flow
-1 000
-500
-
500
1 000
1 500
2 000
2 500
3 000
1 2 3 4 5 6 7
Thousands €
Years
Free Cash Flow Base option
Free Cash Flow High Growth
Free Cash Flow Low Awarness
Scenarios Financial expectations
3 647
1 043
-241 -500
-
500
1 000
1 500
2 000
2 500
3 000
3 500
4 000
Tho
usan
ds €
NPV High Growth NPV Base option NPV Low Awarness
Annex 18-41
We can notice the that resources unfold faster than revenues in our scenarios, the growth scenarios generated 3,5 times more revenue than our base case, yet it requires 5 times
more resources costs to deliver. Also there are synergies in sales and sourcing, teams request to be managed and generate line managers staffing meanwhile our customer care
center remains staffed to the same level.
Figure 3 Scenarios Resources Details
Input Data Y1 Y2 Y3
High Realistic Low High Realistic Low High
Global Metrics
TOTAL FUNCTION COST 167 075 € 162 005 € 158 461 € 336 462 € 222 034 € 207 902 € 1 721 698 € Wage growth Rate 3% 3% 3% 3% 3% 3% 3%Coupounded wage Rate 103% 103% 103% 106% 106% 106% 109%Price Inflation rate 3,5% 3,5% 3,5% 3,5% 3,5% 3,5% 3,5%Coupounded Inflation Rate 104% 104% 104% 107% 107% 107% 111%Employee Headcount 8 8 8 10 8 8 19 Nb of line managers - - - - - - 3 1. Call center / Customer services 62 878 € 60 810 € 59 259 € 112 151 € 97 991 € 88 767 € 691 071 €
Nb of expert 7 7 7 7 7 7 8Manager (1 from 7 to 20 persons) 20 0 0 0 0 0 0 1
2. Supply Management 88 169 € 87 548 € 87 341 € 95 727 € 91 156 € 90 728 € 120 959 € Nb supplier B2B 8 5 4 16 10 8 40Nb of supply Manager 10 1 1 1 2 1 1 4
3. Sales & Marketing 2 070 € 1 242 € 621 € 88 851 € 4 285 € 2 692 € 393 679 € Sale force (Nb) 1 0 0 0 1 0 0 4Sales Managers 20 0 0 0 0 0 0 0
4. IT Support 6 875 € 6 875 € 6 875 € 23 136 € 17 636 € 17 636 € 130 444 € Nb of IT Poeple 0 0 0 0 0 0 1
5. General administration 7 083 € 5 530 € 4 365 € 16 598 € 10 966 € 8 079 € 385 547 € Quality Manager 70 000 € 0 € 0 € 0 € 0 € 0 € 0 € 76 491 €Trainer 0 0 0 0 0 0 2Quality Manager nb 0 0 0 0 0 0 1Nb of people (General Management) 0 0 0 0 0 0 0 1
Y4 Y5
Realistic Low High Realistic Low High Realistic Low
969 099 € 775 677 € 3 908 995 € 2 034 202 € 1 123 666 € 7 371 117 € 2 298 526 € 1 303 462 € 3% 3% 3% 3% 3% 3% 3% 3%
109% 109% 113% 113% 113% 116% 116% 116%3,5% 3,5% 3,5% 3,5% 3,5% 3,5% 3,5% 3,5%111% 111% 115% 115% 115% 119% 119% 119%10 7 35 17 11 57 18 12 1 1 5 4 1 7 4 2
427 557 € 430 132 € 1 691 541 € 820 131 € 535 951 € 2 922 381 € 931 414 € 542 669 € 5 5 18 8 6 30 9 60 0 1 1 0 2 1 0
101 215 € 96 468 € 131 482 € 107 627 € 105 791 € 155 510 € 110 714 € 108 813 € 18 10 45 20 12 45 20 121,5 1 5 2 2 8 2 2
186 210 € 91 674 € 1 433 747 € 655 211 € 196 435 € 2 726 302 € 750 001 € 312 453 € 2 1 10 5 2 13 5 30 0 1 1 0 1 1 0
122 744 € 33 984 € 186 130 € 161 130 € 148 430 € 683 058 € 200 598 € 106 788 € 1 0 1 1 1 4 1 0,5
131 373 € 123 420 € 466 095 € 290 104 € 137 060 € 883 866 € 305 799 € 232 739 € 0 € 0 € 78 786 € 78 786 € 0 € 81 149 € 81 149 € 81 149 €
0 0 1 1 0 2 1 00 0 1 1 0 1 1 11 1 2 1 1 3 1 1
Annex 18-42
SENSITIVITY ANALYSIS
A major issue, difficult to solve using our scenario analysis, is to understand which business driver will have the
major influence over the company results. To understand the main driver we choose four different parameters of
our business model:
• Contract revenues (Sales)
• Pricing option
• Customer Care Center Activity (related to the number of call)
• Cost of equity (WACC)
The two first drivers are marketing drivers, the second is an operational driver and the fourth represents our
capacity to access to financial resources.
We conducted a sensitivity analysis on the firm NPV by driving the change on each lever while keeping a constant
perimeter on other business drivers. Our base case scenario is use as reference in each simulation (marked in green
in) .
Main results:
As shown by the summary in graph (Figure 4 Main business drivers) the WLM agency value is very sensitive to
the marketing execution in term of pricing and sales. To start creating value our business needs to market 130
contracts at an average pricing of 17,7K€.
On pricing:
Over the 5 years growth period, a pricing policy of –35% is bringing a loss of value and a positive perpetuity. All
other drivers being fixed, a pricing policy of around –37% in average (vs. our base case) will start destroying
value. Taking into account our pricing “spread” and sales volume, the contract average revenue for our base case
is 17,7 K€. The average revenue to reach the break even is 11,1 K€. This is leading to a total of 2,2 M€ revenue to
break even.
Price Sensitivity Growth Perpetuity (Y0) Price var Nb of Contracts Y5Revenue/contractDisount Rate H0 39% 30% 1,5%Beta H0 1,90 1,70 Risk Premiun 18,5% 15,5%Risk Free Rate 3,5% 3,5%
NPV HR 1 065 809,50 € 1 903,29 € 1 063 906,21 € 0% 205
NPV H0 3 438 212,06 € 1 251 170,78 € 2 187 041,28 € 100% 205 NPV H1 -526 573,13 € -503 343,58 € -23 229,56 € -50% 205 NPV H2 -1 559 983,96 € -944 399,17 € -615 584,79 € -75% 205 NPV H3 312 525,28 € -105 596,73 € 418 122,01 € -30% 205 NPV H4 104 896,16 € -200 897,19 € 305 793,35 € -35% 205 NPV H5 -72 479,18 € -287 172,95 € 214 693,77 € -40% 205
Price Sensitivity Growth Perpetuity (Y0) Price var Nb of Contracts Y5Revenue/contractDisount Rate H0 39% 30% 1,5%Beta H0 1,90 1,70 Risk Premiun 18,5% 15,5%Risk Free Rate 3,5% 3,5%
NPV HR 1 065 809,50 € 1 903,29 € 1 063 906,21 € 0% 205
NPV H0 3 438 212,06 € 1 251 170,78 € 2 187 041,28 € 100% 205 NPV H1 -526 573,13 € -503 343,58 € -23 229,56 € -50% 205 NPV H2 -1 559 983,96 € -944 399,17 € -615 584,79 € -75% 205 NPV H3 312 525,28 € -105 596,73 € 418 122,01 € -30% 205 NPV H4 104 896,16 € -200 897,19 € 305 793,35 € -35% 205 NPV H5 -72 479,18 € -287 172,95 € 214 693,77 € -40% 205
Annex 18-43
On Sales:
Value creation on sales volume start at around –40% of our base scenario, which give 165 contracts sales over the
five years growth period to break-even
Nevertheless, the firm value is also sensitive to our customer care center activity in a more linear way (yet not
totally) and to our access to reasonable funding cost.
Sales Sensitivity Growth Perpetuity (Y0) CCC Activity Y5Contracts Y5 VarDisount Rate H0 38% 18% 1,5%Beta H0 1,90 1,70 Risk Premiun + Comp Specific 18,5% 15,5%Risk Free Rate 3,5% 3,5%
NPV HR 1 065 809,50 € 1 903,29 € 1 063 906,21 € 29 615 205 %
NPV H0 2 612 965,83 € 968 282,43 € 1 644 683,41 € 59 230 410 100%NPV H1 798 496,45 € 157 253,65 € 641 242,80 € 29 615 205 0%NPV H2 -273 937,16 € -375 400,65 € 101 463,49 € 14 807 103 -50%NPV H3 397 099,10 € -25 589,99 € 422 689,10 € 23 692 164 -20%NPV H4 157 644,33 € -141 608,81 € 299 253,13 € 20 730 144 -30%NPV H5 -1 142 474,09 € -769 464,69 € -373 009,40 € 7 404 50 -76%
CCC Activity sensitivity Growth Mature Perpetuity (Y0) CCC Activity Y5 Contracts Y5Disount Rate H0 31% 31% 15% 2%Beta H0 1,90 1,90 1,70 Risk Premiun 6% 6% 6%Risk Free Rate 4% 4% 4%Market Practice 16% 16% 1%NPV HR 1 065 809,50 € 1 903,29 € 0,00 € 1 063 906,21 € 205 29 615 %
NPV H0 1 546 610,93 € 191 861,22 € 0,00 € 1 354 749,72 € 205 59 230 -50%NPV H1 1 065 809,50 € 1 903,29 € 0,00 € 1 063 906,21 € 205 29 615 0%NPV H2 663 630,35 € -209 297,64 € 0,00 € 872 927,99 € 205 14 807 50%NPV H3 189 021,18 € -497 671,35 € 0,00 € 686 692,53 € 205 88 844 100%NPV H4 -16 520,24 € -609 741,33 € 0,00 € 593 221,09 € 205 74 037 125%NPV H5 -334 694,50 € -930 225,11 € 0,00 € 595 530,61 € 205 44 422 150%
Annex 18-44
NPV Sensitivity Analysis
WACC 18%
Sales +100%
Price +100%
Activity -50%
Market P
rices
Market S
ales
CCC activity
WACC
WACC 40%
Price -30%
Sales -20%
Activity +50%
WACC 50%
Sales -30%
Price -35%
Activity +100%
Sales -75%
Activity +125%
Price -50%
Acticity +150%
Sales -50%
Price = -40%
Price -75%
-2 000 000
-1 000 000
-
1 000 000
2 000 000
3 000 000
4 000 000
Fig
ure 5 M
ain busine
ss drivers
Annex 18-45
RISKS M ITIGATION
From our various analyses we can identify the fundamental risks of our model and mitigate them.
Growth burst and Growth uncertainty
Our scenario analysis shows that growing with profitability is possible under accurate tuning of our resources.
Training, timing and workload is key to our model this is why we intend:
To invest into an e-platform in order to automate most basic interaction like choosing, ordering, paying and rating
a service.
To invest into a knowledge center (share database) allowing economy of scales
To recruit a professional Trainer/HR manager and a quality Manager in the course of the fourth year of business
Uncertainty on our growth rate may obliged us to change the course of action during our business implementation,
this is one of the reason we choose to go in two phases, each one allowing new funds to sustain the business.
Marketing execution
We are faced with two issues, one regarding our pricing level and model, the other one with the sales
effectiveness.
• Regarding our pricing model level, our service relies on:
Quality: our membership fee comprises an exclusive access to our CCC, the possibility to rate the services and the
option to order on line.
Sourcing of “Good enough family services” to broker: we intend to hire sourcing managers and a quality manager
after the first two years of operation.
Regarding our sales effectiveness we intend to initiate sales trough valued network such as the chamber of
commerce, the national organization dedicated to “family awareness” while at the same time building a strong
image around our platform.
• Cost of labor
Annex 18-46
As our business is labor intensive we will have to carefully control our recruitment in term of volume and salary
level. We may be using “mini jobs” contracts system in order to reduce our wages, at least during the “seed” phase
(two first year of growth period).
As a service broker, supporting our members with a customer care center a particular attention shall be given to
our cost per call. We can see that our model cannot support, in average, more than a 2,5 fold increase in time
spend per active user more specifically once our model switched to a more establish organization (after 2 years).
Our CCC activity is estimated based on two parameters, the usage rate of our brokerage platform on the one hand,
and the average time spend (per annum) to support membership requirement on the other one. During our
deployment phase, the WLM brokerage platform usage rate growths from 30% to 40% and the average time per
(derived from the number of supported transaction per user) decrease from 3,5 hrs to 1,1hours. To mitigate the risk
here we intend to invest in an IT platform (in order to automate part of the service request) and to select the
suppliers with a strong focus on reliability.
• Cost of funds
The actual financial crisis does not ease our search for a low cost of capital. We prefer to keep the financial
leverage of equity for a better timing, after two years of business operation.
Annex 19-47
19. ANNEX 19 FINANCIAL PLANS INPUT DATA MARKET RESEARCH
B2B Statistics
Targeted Sectors Input Metrics Backing Stages
Distribution of compagnies
Total Employees
Qualified employee = "HP" Total Market
Nb of "HP" per "company"
Total "HP" Market
TOTAL Potential 7770 7 770 1 471 938
RHEIN-NECKARTOTAL 2150 453 142
1.1 Industrial Companies 1500Number of companies ( A ) 1% 15000 18% 15 2700 40500Number of companies ( B ) 5% 7000 15% 75 1050 78750Number of companies ( C ) 15% 3000 15% 225 450 101250Number of companies ( D ) 20% 1500 12% 300 180 54000Number of companies ( E ) 59% 700 10% 885 70 61950
1.2 Pharmaceuticals companies 300
Number of companies ( A ) 1% 10000 20% 3 2000 6000Number of companies ( B ) 5% 7000 20% 15 1400 21000Number of companies ( C ) 15% 2000 20% 45 400 18000Number of companies ( D ) 20% 700 20% 60 140 8400Number of companies ( E ) 59% 200 20% 177 40 7080
1.3 Banks & Insurance Companies 150Number of companies ( A ) 1% 8000 32% 2 2560 3840Number of companies ( B ) 5% 3000 32% 8 960 7200Number of companies ( C ) 15% 1000 32% 23 320 7200Number of companies ( D ) 20% 300 32% 30 96 2880Number of companies ( E ) 59% 100 32% 89 32 2832
1.4 Others Companies 200Number of companies ( A ) 1% 10000 10% 2 1000 2000Number of companies ( B ) 5% 7000 10% 10 700 7000Number of companies ( C ) 15% 3000 10% 30 300 9000Number of companies ( D ) 20% 1500 10% 40 150 6000Number of companies ( E ) 59% 700 10% 118 70 8260
BERLINTOTAL 2200 421 728
1.1 Industrial Companies 1000Number of companies ( A ) 1% 15000 18% 10 2700 27000Number of companies ( B ) 5% 7000 15% 50 1050 52500Number of companies ( C ) 15% 3000 15% 150 450 67500Number of companies ( D ) 20% 1500 12% 200 180 36000Number of companies ( E ) 59% 700 10% 590 70 41300
1.2 Pharmaceuticals companies 100Number of companies ( A ) 1% 10000 20% 1 2000 2000Number of companies ( B ) 5% 7000 20% 5 1400 7000Number of companies ( C ) 15% 2000 20% 15 400 6000Number of companies ( D ) 20% 700 20% 20 140 2800Number of companies ( E ) 59% 200 20% 59 40 2360
1.3 Banks & Insurance Companies 100
Number of companies ( A ) 1% 8000 32% 1 2560 2560Number of companies ( B ) 5% 3000 32% 5 960 4800Number of companies ( C ) 15% 1000 32% 15 320 4800Number of companies ( D ) 20% 300 32% 20 96 1920Number of companies ( E ) 59% 100 32% 59 32 1888
1.4 Others Companies 1000Number of companies ( A ) 1% 10000 10% 10 1000 10000Number of companies ( B ) 5% 7000 10% 50 700 35000Number of companies ( C ) 15% 3000 10% 150 300 45000Number of companies ( D ) 20% 1500 10% 200 150 30000Number of companies ( E ) 59% 700 10% 590 70 41300
BEILEFELDTOTAL 720 137 140
1.1 Industrial Companies 500Number of companies ( A ) 1% 15000 18% 5 2700 13500Number of companies ( B ) 5% 7000 15% 25 1050 26250Number of companies ( C ) 15% 3000 15% 75 450 33750Number of companies ( D ) 20% 1500 12% 100 180 18000Number of companies ( E ) 59% 700 10% 295 70 20650
1.2 Pharmaceuticals companies 20Number of companies ( A ) 1% 10000 20% 0 2000 400Number of companies ( B ) 5% 7000 20% 1 1400 1400Number of companies ( C ) 15% 2000 20% 3 400 1200Number of companies ( D ) 20% 700 20% 4 140 560Number of companies ( E ) 59% 200 20% 12 40 472
1.3 Banks & Insurance Companies 100Number of companies ( A ) 1% 8000 32% 1 2560 2560Number of companies ( B ) 5% 3000 32% 5 960 4800Number of companies ( C ) 15% 1000 32% 15 320 4800Number of companies ( D ) 20% 300 32% 20 96 1920Number of companies ( E ) 59% 100 32% 59 32 1888
1.4 Others Companies (Energy) 100
Number of companies ( A ) 1% 8000 10% 1 800 800Number of companies ( B ) 5% 3000 10% 5 300 1500Number of companies ( C ) 15% 1000 10% 15 100 1500Number of companies ( D ) 20% 300 10% 20 30 600
Annex 19-48
FRANCFURTTOTAL 1450 256 910
1.1 Industrial Companies 700Number of companies ( A ) 1% 15000 18% 7 2700 18900Number of companies ( B ) 5% 7000 15% 35 1050 36750Number of companies ( C ) 15% 3000 15% 105 450 47250Number of companies ( D ) 20% 1500 12% 140 180 25200Number of companies ( E ) 59% 700 10% 413 70 28910
1.2 Pharmaceuticals companies 50Number of companies ( A ) 1% 10000 20% 1 2000 1000Number of companies ( B ) 5% 7000 20% 3 1400 3500Number of companies ( C ) 15% 2000 20% 8 400 3000Number of companies ( D ) 20% 700 20% 10 140 1400Number of companies ( E ) 59% 200 20% 30 40 1180
1.3 Banks & Insurance Companies 500Number of companies ( A ) 1% 8000 32% 5 2560 12800Number of companies ( B ) 5% 3000 32% 25 960 24000Number of companies ( C ) 15% 1000 32% 75 320 24000Number of companies ( D ) 20% 300 32% 100 96 9600Number of companies ( E ) 59% 100 32% 295 32 9440
1.4 Others Companies (Energy) 200
Number of companies ( A ) 1% 8000 10% 2 800 1600Number of companies ( B ) 5% 3000 10% 10 300 3000Number of companies ( C ) 15% 1000 10% 30 100 3000Number of companies ( D ) 20% 300 10% 40 30 1200Number of companies ( E ) 59% 100 10% 118 10 1180
STUTTGARTTOTAL 1250 203 018
1.1 Industrial Companies 700Number of companies ( A ) 1% 15000 18% 7 2700 18900Number of companies ( B ) 5% 7000 15% 35 1050 36750Number of companies ( C ) 15% 3000 15% 105 450 47250Number of companies ( D ) 20% 1500 12% 140 180 25200Number of companies ( E ) 59% 700 10% 413 70 28910
1.2 Pharmaceuticals companies 50Number of companies ( A ) 1% 10000 20% 1 2000 1000Number of companies ( B ) 5% 7000 20% 3 1400 3500Number of companies ( C ) 15% 2000 20% 8 400 3000Number of companies ( D ) 20% 700 20% 10 140 1400Number of companies ( E ) 59% 200 20% 30 40 1180
1.3 Banks & Insurance Companies 100Number of companies ( A ) 1% 8000 32% 1 2560 2560Number of companies ( B ) 5% 3000 32% 5 960 4800Number of companies ( C ) 15% 1000 32% 15 320 4800Number of companies ( D ) 20% 300 32% 20 96 1920Number of companies ( E ) 59% 100 32% 59 32 1888
1.4 Others Companies (Energy) 400Number of companies ( A ) 1% 8000 10% 4 800 3200Number of companies ( B ) 5% 3000 10% 20 300 6000Number of companies ( C ) 15% 1000 10% 60 100 6000Number of companies ( D ) 20% 300 10% 80 30 2400Number of companies ( E ) 59% 100 10% 236 10 2360
HAMBURGTOTAL 4500 203 018
1.1 Industrial Companies 1000Number of companies ( A ) 1% 15000 18% 7 2700 18900Number of companies ( B ) 5% 7000 15% 35 1050 36750Number of companies ( C ) 15% 3000 15% 105 450 47250Number of companies ( D ) 20% 1500 12% 140 180 25200Number of companies ( E ) 59% 700 10% 413 70 28910
1.2 Pharmaceuticals companies 100
Number of companies ( A ) 1% 10000 20% 1 2000 1000Number of companies ( B ) 5% 7000 20% 3 1400 3500Number of companies ( C ) 15% 2000 20% 8 400 3000Number of companies ( D ) 20% 700 20% 10 140 1400Number of companies ( E ) 59% 200 20% 30 40 1180
1.3 Banks & Insurance Companies 3000Number of companies ( A ) 1% 8000 32% 1 2560 2560Number of companies ( B ) 5% 3000 32% 5 960 4800Number of companies ( C ) 15% 1000 32% 15 320 4800Number of companies ( D ) 20% 300 32% 20 96 1920Number of companies ( E ) 59% 100 32% 59 32 1888
1.4 Others Companies (Energy) 400Number of companies ( A ) 1% 8000 10% 4 800 3200Number of companies ( B ) 5% 3000 10% 20 300 6000Number of companies ( C ) 15% 1000 10% 60 100 6000Number of companies ( D ) 20% 300 10% 80 30 2400Number of companies ( E ) 59% 100 10% 236 10 2360
Annex 19-49
Pricing Model Input Data
High Realistic Low High Realistic Low
40 000 € 40 000 € 40 000 € 40 000 € 40 000 € 40 000 € 30 000 € 30 000 € 30 000 € 30 000 € 30 000 € 30 000 € 20 000 € 20 000 € 20 000 € 20 000 € 20 000 € 20 000 € 15 000 € 15 000 € 15 000 € 15 000 € 15 000 € 15 000 € 10 000 € 10 000 € 10 000 € 10 000 € 10 000 € 10 000 €
50% 50% 50% 50% 50% 50%10% 10% 10% 10% 10% 10%30% 30% 30% 30% 30% 30%3% 3% 3% 3% 3% 3%3% 3% 3% 3% 3% 3%4% 4% 4% 4% 4% 4%
500 500 500 500 500 500
Y4 Y5
High Realistic Low High Realistic Low High Realistic Low
CONTRACTS PRICE PRICE ON "High Potential Ranges" Max range of HP
Member Ship Fee Company HP > 1000 99999 40 000 € 40 000 € 40 000 € 40 000 € 40 000 € 40 000 € 40 000 € 40 000 € 40 000 € Member Ship Fee Company 500< HP <1000 1000 30 000 € 30 000 € 30 000 € 30 000 € 30 000 € 30 000 € 30 000 € 30 000 € 30 000 € Member Ship Fee Company 200< HP <500 500 20 000 € 20 000 € 20 000 € 20 000 € 20 000 € 20 000 € 20 000 € 20 000 € 20 000 € Member Ship Fee Company 50 < HP < 200 200 15 000 € 15 000 € 15 000 € 15 000 € 15 000 € 15 000 € 15 000 € 15 000 € 15 000 € Member Ship Fee Company 50 < HP 50 10 000 € 10 000 € 10 000 € 10 000 € 10 000 € 10 000 € 10 000 € 10 000 € 10 000 €
TRANSACTIONS Price/transaction Avrg Price/H %feeHousehold Services 0,5 € 17 € 3% 50% 50% 50% 50% 50% 50% 50% 50% 50%Baby sitting Services 0,6 € 11 € 5% 10% 10% 10% 10% 10% 10% 10% 10% 10%Eldercare / Kindengarden Services 1,0 € 20 € 5% 30% 30% 30% 30% 30% 30% 30% 30% 30%Shopping Services 0,3 € 7 € 4% 3% 3% 3% 3% 3% 3%Pet services 0,5 € 10 € 5% 3% 3% 3% 3% 3% 3%Other concierge services 0,5 € 9 € 5% 10% 10% 10% 4% 4% 4% 4% 4% 4%
ADVERTISEMENT
Banner Price per Month 0 0 0 0 0 0 500 500 500
RHEIN-NECKAR CUSTOMER SEGMENTATION Seg%Company HP > 1000 2%Company 500< HP <1000 5%Company 200< HP <500 38%Company 50 < HP < 200 45%Company 50 < HP 10%
BERLIN Company HP > 1000 2%Company 500< HP <1000 5%Company 200< HP <500 38%Company 50 < HP < 200 45%Company 50 < HP 10%
BEILHENDER Company HP > 1000 2%Company 500< HP <1000 5%Company 200< HP <500 38%Company 50 < HP < 200 45%Company 50 < HP 10%
FRANKFURT Company HP > 1000 2%Company 500< HP <1000 5%Company 200< HP <500 38%Company 50 < HP < 200 45%Company 50 < HP 10%
HAMBURG Company HP > 1000 2%Company 500< HP <1000 5%Company 200< HP <500 38%Company 50 < HP < 200 45%Company 50 < HP 10%
STUTTGART Company HP > 1000 2%Company 500< HP <1000 5%Company 200< HP <500 38%Company 50 < HP < 200 45%Company 50 < HP 10%
OFFER MIX
Y1 Y2 Y3
Spread of WLM Agency costumer per High
Profile Segment
Pricing model:
1 - Membership Fee per HP segment
2 – Transaction fee on supply
3- Per Banner price per Month
Annex 19-50
.
INPUT DATA DEMAND
CONTRACTS High Realistic Low High Realistic Low High Realistic Low High Realistic Low High Realistic
CONTRACTS DEMAND
RHEIN-NECKAR AWARE SHARE 4,65% 5,58% 13,95% 11,63% 13,95% 46,51% 15,50% 10,23% 17,44% 25,58% 16,74% 15,50% 26,74% 23,26%
RHEIN-NECKAR TOTAL MARKET - AWARE MARKET 2150 215 108 22 215 108 22 323 215 86 430 215 129 860 215
1.1 Market Target 10 6 3 25 15 10 50 22 15 110 36 20 230 50
BERLIN AWARE SHARE 0,00% 0,00% 0,00% 11,63% 13,95% 46,51% 15,50% 10,23% 17,44% 25,58% 16,74% 15,50% 26,74% 23,26%
TOTAL MARKET - AWARE MARKET 2200 220 110 22 220 110 22 330 220 88 440 220 132 880 220
1.1 Market Target - - - 13 5 5 51 15 15 113 30 20 235 40
BIELEFELD AWARE SHARE 15,50% 10,23% 17,44% 25,58% 16,74% 15,50% 26,74% 23,26%
TOTAL MARKET - AWARE MARKET 720 72 36 7 72 36 7 108 72 29 144 72 43 288 72
1.1 Market Target - - - - - - 17 5 5 37 13 7 77 20
FRANCFURT AWARE SHARE 25,58% 16,74% 15,50% 26,74% 23,26%
TOTAL MARKET - AWARE MARKET 1450 145 73 15 145 73 15 218 145 58 290 145 87 580 145
1.1 Market Target - - - - - - - - - 74 30 13 155 40
HAMBURG AWARE SHARE 25,58% 16,74% 15,50% 26,74% 23,26%
TOTAL MARKET - AWARE MARKET 1250 125 63 13 125 63 13 188 125 50 250 125 75 500 125
1.1 Market Target - - - - - - - - - 64 20 12 134 30
STUTTGART AWARE SHARE 26,74% 23,26%
TOTAL MARKET - AWARE MARKET 1250 125 63 13 125 63 13 188 125 50 250 125 75 500 125
1.1 Market Target - - - - - - - - - - - - 134 25
TRANSACTIONS
Avrg (Nb of transactions / HP) 2 2 2 8 8 8 15 15 15 30 30 30 40 40
Usage rate per company (% of HP) 20% 20% 20% 20% 20% 20% 30% 30% 30% 30% 30% 30% 40% 40%
Min Number of user under contract 1 440 866 436 5 428 2 875 2 174 16 925 6 032 5 081 57 051 18 517 10 377 138 472 29 423
RHEIN-NECKAR TOTAL MARKET - TARGET MARKET 453 142 574 345 172 5 744 3 446 2 298 32 310 14 216 9 693 142 164 46 526 25 848 528 448 114 880
BERLIN TOTAL MARKET - TARGET MARKET 421 728 - - - 2 939 1 149 1 176 33 061 9 693 9 918 145 470 38 772 26 449 540 737 91 904
BEDELFELD TOTAL MARKET - AWARE MARKET 137 140 - - - - - - 10 820 3 231 3 246 47 608 16 801 8 656 176 969 45 952
FRANKFURT TOTAL MARKET - TARGET MARKET 256 910 - - - - - - - - - 95 878 38 772 17 432 356 395 91 904
HAMBURG TOTAL MARKET - TARGET MARKET 203 018 - - - - - - - - - 82 653 25 848 15 028 307 237 68 928
STUTTGART TOTAL MARKET - TARGET MARKET 203 018 - - - - - - - - - - - - 307 237 57 440
WLB Awarness 10% 5% 1% 10% 5% 1% 15% 10% 4% 20% 10% 6% 40% 10%
Y4 Y5Y1 Y2 Y3
High Realistic Low
26,74% 23,26% 19,38%
860 215 129
230 50 25
26,74% 23,26% 19,38%
880 220 132
235 40 26
26,74% 23,26% 19,38%
288 72 43
77 20 8
26,74% 23,26% 19,38%
580 145 87
155 40 17
26,74% 23,26% 19,38%
500 125 75
134 30 15
26,74% 23,26% 19,38%
500 125 75
134 25 15
40 40 40
40% 40% 40%
138 472 29 423 15 056
528 448 114 880 57 440
540 737 91 904 58 776
176 969 45 952 19 236
356 395 91 904 38 739
307 237 68 928 33 395
307 237 57 440 33 395
40% 10% 6%
Y5
Annex 19-51
DEMAND FORECAST BACKING
MARKETS
High Realistic Low High Realistic Low High Realistic Low High Realistic Low High Realistic
TOTAL ALL MARKETS (€) 176 876 € 106 126 € 53 063 € 559 142 € 355 993 € 223 657 € 1 494 388 € 758 979 € 448 316 € 5 309 900 € 2 385 451 € 965 436 € 13 601 785 € 3 925 065 €Fee turnover 176 500 € 105 900 € 52 950 € 554 440 € 353 000 € 221 776 € 1 459 578 € 741 300 € 437 873 € 5 068 159 € 2 276 850 € 921 483 € 12 538 560 € 3 618 250 €
Nb of target transactions 574 345 172 7 217 4 595 2 887 53 438 27 140 16 031 371 110 166 720 67 475 1 632 215 471 008 Nb of target customers 10 6 3 31 20 13 83 42 25 287 129 52 710 205
1. Rhein-Neckar (€) 176 876 € 106 126 € 53 063 € 444 992 € 266 995 € 177 997 € 903 547 € 397 561 € 271 064 € 2 034 106 € 665 707 € 369 837 € 4 403 731 € 957 333 €
Membership Fees 176 500 € 105 900 € 52 950 € 441 250 € 264 750 € 176 500 € 882 500 € 388 300 € 264 750 € 1 941 500 € 635 400 € 353 000 € 4 059 500 € 882 500 €
Transaction revenues 376 € 226 € 113 € 3 742 € 2 245 € 1 497 € 21 047 € 9 261 € 6 314 € 92 606 € 30 307 € 16 837 € 344 231 € 74 833 €
Advertisement revenues - €
Number of contracts 10 6 3 25 15 10 50 22 15 110 36 20 230 50 Company HP > 1000 0,20 0,12 0,06 0,50 0,30 0,20 1,00 0,44 0,30 2,20 0,72 0,40 4,60 1,00
Company 500< HP <1000 0,50 0,30 0,15 1,25 0,75 0,50 2,50 1,10 0,75 5,50 1,80 1,00 11,50 2,50
Company 200< HP <500 3,80 2,28 1,14 9,50 5,70 3,80 19,00 8,36 5,70 41,80 13,68 7,60 87,40 19,00
Company 50 < HP < 200 4,50 2,70 1,35 11,25 6,75 4,50 22,50 9,90 6,75 49,50 16,20 9,00 103,50 22,50
Company 50 < HP 1,00 0,60 0,30 2,50 1,50 1,00 5,00 2,20 1,50 11,00 3,60 2,00 23,00 5,00
Number of transactions 574 345 172 5 744 3 446 2 298 32 310 14 216 9 693 142 164 46 526 25 848 528 448 114 880 Number of adv - - - - - - - - 1 000 1 000 1 000 1 000 1 000 1 000
2. Berlin (€) 0 € 0 € 0 € 114 150 € 88 998 € 45 660 € 463 559 € 271 064 € 139 068 € 1 043 585 € 554 756 € 189 743 € 2 259 305 € 765 866 €
3. Beilhender (€) 0 € 0 € 0 € 0 € 0 € 0 € 127 282 € 90 355 € 38 185 € 286 544 € 240 394 € 52 099 € 620 352 € 382 933 €
4. Franckfurt (€) 0 € 0 € 0 € 0 € 0 € 0 € 0 € 0 € 0 € 972 833 € 554 756 € 176 879 € 2 106 132 € 765 866 €
5. Hamburg (€) 0 € 0 € 0 € 0 € 0 € 0 € 0 € 0 € 0 € 972 833 € 369 837 € 176 879 € 2 106 132 € 574 400 €
6. Stuttgart (€) 0 € 0 € 0 € 0 € 0 € 0 € 0 € 0 € 0 € 0 € 0 € 0 € 2 106 132 € 478 666 €
REVENUES STREAMS
Y5Y4Y1 Y2 Y3
High Realistic Low
13 601 785 € 3 925 065 € 1 478 455 €12 538 560 € 3 618 250 € 1 362 887 €
1 632 215 471 008 177 415 710 205 77
4 403 731 € 957 333 € 478 666 €
4 059 500 € 882 500 € 441 250 €
344 231 € 74 833 € 37 416 €
230 50 25 4,60 1,00 0,50
11,50 2,50 1,25
87,40 19,00 9,50
103,50 22,50 11,25
23,00 5,00 2,50
528 448 114 880 57 440 1 000 1 000 1 000
2 259 305 € 765 866 € 245 577 €
620 352 € 382 933 € 67 430 €
2 106 132 € 765 866 € 228 927 €
2 106 132 € 574 400 € 228 927 €
2 106 132 € 478 666 € 228 927 €
Y5
Annex 19-52
FUNCTION COSTS “A NALYTICS ”
Input Data Y1 Y2 Y3 Y4 Y5
High Realistic Low High Realistic Low High Realistic Low High Realistic Low High
Global Metrics
TOTAL FUNCTION COST 167 075 € 162 005 € 158 461 € 336 462 € 222 034 € 207 902 € 1 721 698 € 969 099 € 775 677 € 3 908 995 € 2 034 202 € 1 123 666 € 7 371 117 € Wage growth Rate 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3% 3%Coupounded wage Rate 103% 103% 103% 106% 106% 106% 109% 109% 109% 113% 113% 113% 116%Price Inflation rate 3,5% 3,5% 3,5% 3,5% 3,5% 3,5% 3,5% 3,5% 3,5% 3,5% 3,5% 3,5% 3,5%Coupounded Inflation Rate 104% 104% 104% 107% 107% 107% 111% 111% 111% 115% 115% 115% 119%Employee Headcount 8 8 8 10 8 8 19 10 7 35 17 11 57 Nb of line managers - - - - - - 3 1 1 5 4 1 7 1. Call center / Customer services 62 878 € 60 810 € 59 259 € 112 151 € 97 991 € 88 767 € 691 071 € 427 557 € 430 132 € 1 691 541 € 820 131 € 535 951 € 2 922 381 €
1.1 Expertise 62 878 € 60 810 € 59 259 € 98 443 € 84 282 € 75 058 € 677 100 € 413 586 € 416 160 € 1 677 298 € 805 888 € 521 708 € 2 907 857 € Knowledge Expert salary / year (Minijobs) 7 200 € 51 912 € 51 912 € 51 912 € 53 469 € 53 469 € 53 469 € - - - - - - -Knowledge Expert salary / year (Full Time Jobs)65 000 € 568 218 € 355 136 € 355 136 € 1 316 845 € 585 265 € 438 948 € 2 260 584 € Call Center Manager salary / Year (when > 3)100 000 € 0 € 0 € 0 € 0 € 0 € 0 € 0 € 0 € 112 551 € 112 551 € 0 € 231 855 €Office Full cost per year / person 2 400 €- - - - - - 23 948 € 13 305 € 13 305 € 52 327 € 24 786 € 16 524 € 91 214 €Telecom expenses (free call number) 0,10 € 5 170 € 3 102 € 1 551 € 38 974 € 24 814 € 15 590 € 76 951 € 40 711 € 43 285 € 178 133 € 75 024 € 60 727 € 293 799 € Phone set & Computer for 1 year / person 800 € 5 796 € 5 796 € 5 796 € 5 999 € 5 999 € 5 999 € 7 983 € 4 435 € 4 435 € 17 442 € 8 262 € 5 508 € 30 405 €
1.2 Tool support - € - € - € 13 709 € 13 709 € 13 709 € 13 971 € 13 971 € 13 971 € 14 243 € 14 243 € 14 243 € 14 524 € Knowledge DataBase Hosting / Year 6 000 € 6 210 € 6 210 € 6 210 € 6 210 € 6 210 € 6 210 € 6 210 € 6 210 € 6 210 € 6 210 € Software Licence fee 2 000 € 2 142 € 2 142 € 2 142 € 2 217 € 2 217 € 2 217 € 2 295 € 2 295 € 2 295 € 2 375 € Software Evolution/year (10 days) 5 000 € 5 356 € 5 356 € 5 356 € 5 544 € 5 544 € 5 544 € 5 738 € 5 738 € 5 738 € 5 938 €
WorkloadNb of Call (Nb transactions * call rate) 1 723 1 034 517 21 652 13 786 8 661 64 126 33 926 24 047 148 444 83 360 50 606 408 054 Call rate per transaction 3 3 3 3 3 3 1,2 1,25 1,5 0,40 0,5 0,75 0,25Workload per transaction in hr 0,5 0,5 0,5 0,3 0,3 0,3 0,2 0,2 0,3 0,2 0,15 0,2 0,12Total Days of service 365Yearly hours per FullJob 1687,5Yearly hours per MiniJobs 960Service Time Availibilty (Yearly) 6H00 - 22H00 16 5840 5840 5840 5840 5840 5840 5840 5840 5840 5840 5840 5840 5840Effective time workload per year 862 517 258 6496 4136 2598 12825 6785 7214 29689 12504 10121 48966Nb of expert 7 7 7 7 7 7 8 5 5 18 8 6 30Manager (1 from 7 to 20 persons) 20 0 0 0 0 0 0 1 0 0 1 1 0 2
2. Supply Management 88 169 € 87 548 € 87 341 € 95 727 € 91 156 € 90 728 € 120 959 € 101 215 € 96 468 € 131 482 € 107 627 € 105 791 € 155 510 € Supply expert salary (general manager the 2 1st years)80 000 € 82 400 € 82 400 € 82 400 € 84 872 € 84 872 € 84 872 € 87 418 € 87 418 € 87 418 € 90 041 € 90 041 € 90 041 € 92 742 € Telecom expenses (3h/day) 0,05 € 3 285 € 3 285 € 3 285 € 6 570 € 3 285 € 3 285 € 13 140 € 4 928 € 3 285 € 16 425 € 6 570 € 6 570 € 27 375 € Phone set & Computer for 3 year / person 800 € 828 € 828 € 828 € 857 € 857 € 857 € 887 € 887 € 887 € 918 € 918 € 918 € 950 € Office Full cost per year / person 2 400 € 10 644 € 3 991 € 2 661 € 13 770 € 5 508 € 5 508 € 23 754 €Juridic Expertise per hour 200 € 1 656 € 1 035 € 828 € 3 428 € 2 142 € 1 714 € 8 870 € 3 991 € 2 217 € 10 328 € 4 590 € 2 754 € 10 689 € Nb supplier B2B 8 5 4 16 10 8 40 18 10 45 20 12 45Nb of supply Manager 10 1 1 1 2 1 1 4 1,5 1 5 2 2 8
Realistic Low
2 298 526 € 1 303 462 € 3% 3%
116% 116%3,5% 3,5%119% 119%18 12 4 2
931 414 € 542 669 € 916 890 € 528 145 €
- -678 175 € 452 117 € 115 927 € 0 €28 504 € 17 103 €
84 781 € 53 224 € 9 501 € 5 701 €
14 524 € 14 524 € 6 210 € 6 210 € 2 375 € 2 375 € 5 938 € 5 938 €
141 302 88 707
0,3 0,50,1 0,1
5840 584014130 8871
9 61 0
110 714 € 108 813 € 92 742 € 92 742 € 6 570 € 6 570 €
950 € 950 € 5 701 € 5 701 €
4 751 € 2 850 € 20 122 2
Annex 19-53
3. Sales & Marketing 2 070 € 1 242 € 621 € 88 851 € 4 285 € 2 692 € 393 679 € 186 210 € 91 674 € 1 433 747 € 655 211 € 196 435 € 2 726 302 € Phone set & Computer for 3 year / person 1 000 € - € - € - € 1 071 € - € - € 4 435 € 2 217 € 1 109 € 12 623 € 6 885 € 2 295 € 16 628 € Juridic Expertise per hour 200 € 2 070 € 1 242 € 621 € 6 730 € 4 285 € 2 692 € 18 337 € 9 313 € 5 501 € 65 902 € 29 606 € 11 982 € 168 746 € Telecom expenses 0,03 € - € - € - € 2 628 € - € - € 10 512 € 5 256 € 2 628 € 28 908 € 15 768 € 5 256 € 36 792 € Office Full cost per year / person 2 400 € 0 € 0 € 0 € 0 € 0 € 0 € 10 644 € 5 322 € 2 661 € 30 295 € 16 524 € 5 508 € 39 906 €Sales Forces fixed 70 000 € - € - € - € 74 263 € - € - € 305 964 € 152 982 € 76 491 € 787 856 € 393 928 € 157 571 € 1 054 939 € Variable sales incentive (%fee) 0,8% - € - € - € 4 158 € - € - € 43 787 € 11 120 € 3 284 € 380 112 € 85 382 € 13 822 € 1 222 510 € Sales & Marketing Manager Incentive 1% - € - € - € - € - € - € - € - € - € 38 011 € 17 076 € - € 94 039 € Sales & Marketing Manager Fixed salary(when sales > 2)80 000 € - € - € - € - € - € - € - € - € - € 90 041 € 90 041 € - € 92 742 €
Sale force (Nb) 1 0 0 0 1 0 0 4 2 1 10 5 2 13Sales Managers 20 0 0 0 0 0 0 0 0 0 1 1 0 1Nb of sales person per B2B 20Fee turnover 176 500 € 105 900 € 52 950 € 554 440 € 353 000 € 221 776 € 1 459 578 € 741 300 € 437 873 € 5 068 159 € 2 276 850 € 921 483 € 12 538 560 € Nb customer B2B 10 6 3 31 20 13 83 42 25 287 129 52 710
4. IT Support 6 875 € 6 875 € 6 875 € 23 136 € 17 636 € 17 636 € 130 444 € 122 744 € 33 984 € 186 130 € 161 130 € 148 430 € 683 058 € Telecom expenses 0,03 € - € - € - € - € - € - € 1 314 € 1 314 € - € 1 314 € 1 314 € 1 314 € 5 256 € Phone set & Computer for 3 year / person 1 000 € - € - € - € - € - € - € 1 109 € 1 109 € - € 1 148 € 1 148 € 1 148 € 4 751 € Office Full cost per year / person 2 400 € 0 € 0 € 0 € 0 € 0 € 0 € 2 661 € 2 661 € 0 € 2 754 € 2 754 € 2 754 € 11 402 €Web site hosting / year 20% 1 700 € 1 700 € 1 700 € 17 780 € 12 280 € 12 280 € 41 140 € 33 440 € 28 440 € 94 140 € 69 140 € 56 440 € 321 840 € Platform evolution (10 days) 5 000 € 5 175 € 5 175 € 5 175 € 5 356 € 5 356 € 5 356 € 5 544 € 5 544 € 5 544 € 5 738 € 5 738 € 5 738 € 5 938 € IT Support (Junior) 72 000 € - € - € - € - € - € - € 78 676 € 78 676 € - € 81 037 € 81 037 € 81 037 € 333 871 €
Nb of IT Poeple 0 0 0 0 0 0 1 1 0 1 1 1 45. General administration 7 083 € 5 530 € 4 365 € 16 598 € 10 966 € 8 079 € 385 547 € 131 373 € 123 420 € 466 095 € 290 104 € 137 060 € 883 866 €
Office GM expenses 800 € 800 € 800 € 1 000 € 800 € 800 € 7 284 € 6 134 € 5 884 € 14 431 € 7 316 € 6 416 € 22 490 € Telecom expenses 0,03 € - € - € - € - € - € - € 1 314 € 1 314 € 1 314 € 2 628 € 1 314 € 1 314 € 3 942 € Phone set & Computer for 3 year / person1 000 € - € - € - € - € - € - € 1 109 € 1 109 € 1 109 € 2 295 € 1 148 € 1 148 € 3 563 € Office Full cost per year / person 2 400 € 0 € 0 € 0 € 0 € 0 € 0 € 2 661 € 2 661 € 2 661 € 5 508 € 2 754 € 2 754 € 8 551 €
Office furnitures / year / person 100 € 800 € 800 € 800 € 1 000 € 800 € 800 € 2 200 € 1 050 € 800 € 4 000 € 2 100 € 1 200 € 6 433 €Others
Advisors / Expertize 6 283 € 4 730 € 3 565 € 14 598 € 10 166 € 7 279 € 261 586 € 16 309 € 12 033 € 157 573 € 157 573 € 20 273 € 243 451 €Accounting expertize 22€ for 1K€ revenue 22 € 3 883 € 2 330 € 1 165 € 12 198 € 7 766 € 4 879 € 32 111 €16 309 € 9 633 € 0 € 0 € 20 273 € 0 €Legal & juridic per hour 200 €
Training Person salary 70 000 € 0 € 0 € 0 € 0 € 0 € 0 € 152 982 € 0 € 0 € 78 786 € 78 786 € 0 € 162 298 €Quality Manager 70 000 € 0 € 0 € 0 € 0 € 0 € 0 € 76 491 € 0 € 0 € 78 786 € 78 786 € 0 € 81 149 €
750 001 € 312 453 € 7 126 € 3 563 €
48 695 € 18 342 € 15 768 € 7 884 € 17 103 € 8 551 €
405 746 € 243 448 € 135 684 € 30 665 € 27 137 € - € 92 742 € - €
5 31 0
3 618 250 € 1 362 887 € 205 77
200 598 € 106 788 € 1 314 € 657 € 1 188 € 594 € 2 850 € 1 425 €
105 840 € 56 440 € 5 938 € 5 938 €
83 468 € 41 734 €
1 0,5305 799 € 232 739 €
7 552 € 6 702 € 1 314 € 1 314 € 1 188 € 1 188 € 2 850 € 2 850 €
2 200 € 1 350 €
162 300 € 111 134 €0 € 29 984 €
81 149 € 0 €81 149 € 81 149 €
IT Maintenance/month 200 € 2 400 € 2 400 € 2 400 € 2 400 € 2 400 € 2 400 € 0 € 0 € 2 400 € 0 € 0 € 0 €General Management - € - € - € 1 000 € - € - € 116 677 € 108 930 € 105 503 € 294 091 € 125 215 € 110 372 €
Payroll 100 000 € 0 € 0 € 0 € 0 € 0 € 0 € 100 000 € 100 000 € 100 000 € 200 000 € 100 000 € 100 000 €Perfromance Package 1% 0 € 0 € 0 € 0 € 0 € 0 € 11 677 € 5 930 € 3 503 € 81 091 € 18 215 € 7 372 €Other expenses Per person/year 1 000 € 0 € 0 € 0 € 1 000 € 0 € 0 € 5 000 € 3 000 € 2 000 € 13 000 € 7 000 € 3 000 €
Nb of people (General Management) 0 0 0 0 0 0 0 1 1 1 2 1 1
0 € 0 € 0 €617 925 € 135 946 € 114 903 € 300 000 € 100 000 € 100 000 €300 925 € 28 946 € 10 903 €
17 000 € 7 000 € 4 000 €
3 1 1
Annex 19-54
INVESTMENT PLAN (3 SCENARIOS) Y1 Y2 Y3 Y4 Y5
High Realistic Low High Realistic Low High Realistic Low High Realistic Low High Realistic LowTOTAL 8500 8500 8500 80400 52900 52900 116800 105800 80800 265000 178500 140000 1138500 183500 0
Project Release variable CostDay man workload
Unit price/day Cost
Web Platform Basic Graphic charting 5 700 3500 3500 3500 3500Web Platform Basic Design 2 500 1000 1000 1000 1000Web Platform Basic Build 10 400 4000 4000 4000 4000
Web Platform Interactive Design 5 700 3500 3500 3500 3500Web Platform Interactive Build 15 400 6000 6000 6000 6000Web Platform Interactive Test 2 400 800 800 800 800
Web Platform Grading Design 4 700 2800 2800 2800 2800Web Platform Grading Build 25 400 10000 10000 10000 10000Web Platform Grading Test 3 400 1200 1200 1200 1200
Web Platform Platform Design 15 700 10500 10500 10500 10500Web Platform Platform Build 100 400 40000 40000 40000 40000Web Platform Platform Test 7 400 2800 2800 2800 2800
Web Platform Platform Design 20 700 14000 14000 14000 14000Web Platform Platform Build 300 400 120000 120000 120000 120000Web Platform Platform Test 15 400 6000 6000 6000 6000
Web Platform Platform Design 4 700 2800 2800 2800Web Platform Platform Build 40 400 16000 16000 16000Web Platform Platform Test 3 400 1200 1200 1200
Web Platform Infrastructure Basic 1 25000 25000 25000 25000Web Platform Infrastructure Advanced 1 50000 50000 50000 50000Web Platform Infrastructure Performance 1 0 0 - - - 75 000 - - 1 080 000 75 000 -
Knowledge Database Simple Design 10 700 7000 7000 7000 7000Knowledge Database Simple Build 50 400 20000 20000 20000 20000Knowledge Database Simple Test 4 400 1600 1600 1600 1600
Knowledge Database Expert Design 5 700 3500 3500 3500 3500Knowledge Database Expert Build 50 400 20000 20000 20000 20000Knowledge Database Expert Test 10 400 4000 4000 4000 4000
Knowledge Database Advanced Design 15 700 10500 10500 10500 10500 10500Knowledge Database Advanced Build 60 400 24000 24000 24000 24000 24000Knowledge Database Advanced Test 10 400 4000 4000 4000 4000 4000Web Platform Cum 8500 8500 8500 32800 32800 32800 111100 111100 86100 376100 251100 226100 1476100 396100 226100Knowledge Database Total cum 0 0 0 56100 28600 28600 94600 56100 56100 94600 94600 56100 133100 133100 56100FIXED ASSET COSTCost of fixed asset brougth forward 0 0 0 8500 8500 8500 88900 61400 61400 205700 167200 142200 470700 345700 282200Cost of fixed asset brought into use on 1st Day of period 8500 8500 8500 80400 52900 52900 116800 105800 80800 265000 178500 140000 1138500 183500 0
Depreciable cost carried forward 8500 8500 8500 88900 61400 61400 205700 167200 142200 470700 345700 282200 1609200 529200 282200
Cost of fixed asset brought into use on last day of period 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0Historic cost of disposal 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0Historic cost of fuly depreciated asset 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Cost of fixed asset carried forward 8500 8500 8500 88900 61400 61400 205700 167200 142200 470700 345700 282200 1609200 529200 282200ACCUMULATED DEPRECIATIONAccumulated cost brought forward 0 0 0 2125 2125 2125 24350 17475 17475 75775 59275 53025 193450 145700 123575Accumulated depreciation on disposal 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0Charge of the year 2125 2125 2125 22225 15350 15350 51425 41800 35550 117675 86425 70550 402300 132300 70550Accumulated depreciation on fully depreciated assets 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Accumulated depreciation carried forward 2125 2125 2125 24350 17475 17475 75775 59275 53025 193450 145700 123575 595750 278000 194125
Net Fixed Asset 6375 6375 6375 64550 43925 43925 129925 107925 89175 277250 200000 158625 1013450 251200 88075Depreciation Rate 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25% 25%
Annex 19-55
BACKING INCOME STATEMENTS (3 SCENARIOS) Y1 Y2 Y2 Y3 Y3 Y4 Y4
High Realistic Low High Realistic Low High Realistic Low High Realistic Low
Revenues 176 876 € 106 126 € 53 063 € 559 142 € 355 993 € 223 657 € 1 494 388 € 758 979 € 448 316 € 5 309 900 € 2 385 451 € 965 436 €
Cost of sales 151 047 € 148 358 € 146 600 € 207 878 € 189 147 € 179 494 € 812 029 € 528 773 € 526 600 € 1 823 023 € 927 758 € 641 741 € 1.1 Expertise 62 878 € 60 810 € 59 259 € 98 443 € 84 282 € 75 058 € 677 100 € 413 586 € 416 160 € 1 677 298 € 805 888 € 521 708 € 1.2 Tool support - € - € - € 13 709 € 13 709 € 13 709 € 13 971 € 13 971 € 13 971 € 14 243 € 14 243 € 14 243 € 2. Supply Management 88 169 € 87 548 € 87 341 € 95 727 € 91 156 € 90 728 € 120 959 € 101 215 € 96 468 € 131 482 € 107 627 € 105 791 €
3. Sales & Marketing 2 070 € 1 242 € 621 € 88 851 € 4 285 € 2 692 € 393 679 € 186 210 € 91 674 € 1 433 747 € 655 211 € 196 435 €
G&A 13 958 € 12 405 € 11 240 € 39 734 € 28 602 € 25 715 € 515 990 € 254 116 € 157 403 € 652 225 € 451 233 € 285 490 € 4. IT Support 6 875 € 6 875 € 6 875 € 23 136 € 17 636 € 17 636 € 130 444 € 122 744 € 33 984 € 186 130 € 161 130 € 148 430 € 5. General administration 7 083 € 5 530 € 4 365 € 16 598 € 10 966 € 8 079 € 385 547 € 131 373 € 123 420 € 466 095 € 290 104 € 137 060 €
Tax Rate 35% 35% 35% 35% 35% 35% 35% 35% 35% 35% 35% 35%
Expense Detail 32 763 € 27 693 € 24 149 € 119 700 € 83 693 € 69 560 € 296 483 € 177 836 € 149 845 € 573 837 € 303 094 € 234 875 € 1. Call center / Customer servicesOffice Full cost per year / person - - - - - - 23 948 € 13 305 € 13 305 € 52 327 € 24 786 € 16 524 € Telecom expenses (free call number) 5 170 € 3 102 € 1 551 € 38 974 € 24 814 € 15 590 € 76 951 € 40 711 € 43 285 € 178 133 € 75 024 € 60 727 € Phone set & Computer for 1 year / person 5 796 € 5 796 € 5 796 € 5 999 € 5 999 € 5 999 € 7 983 € 4 435 € 4 435 € 17 442 € 8 262 € 5 508 € 1.2 Tool support - € - € - € 13 709 € 13 709 € 13 709 € 13 971 € 13 971 € 13 971 € 14 243 € 14 243 € 14 243 € 2. Supply ManagementTelecom expenses (3h/day) 3 285 € 3 285 € 3 285 € 6 570 € 3 285 € 3 285 € 13 140 € 4 928 € 3 285 € 16 425 € 6 570 € 6 570 € Phone set & Computer for 3 year / person 828 € 828 € 828 € 857 € 857 € 857 € 887 € 887 € 887 € 918 € 918 € 918 € Office Full cost per year / person - € - € - € - € - € - € 10 644 € 3 991 € 2 661 € 13 770 € 5 508 € 5 508 € Juridic Expertise per hour 1 656 € 1 035 € 828 € 3 428 € 2 142 € 1 714 € 8 870 € 3 991 € 2 217 € 10 328 € 4 590 € 2 754 € 3. Sales & MarketingPhone set & Computer for 3 year / person - € - € - € 1 071 € - € - € 4 435 € 2 217 € 1 109 € 12 623 € 6 885 € 2 295 € Juridic Expertise per hour 2 070 € 1 242 € 621 € 6 730 € 4 285 € 2 692 € 18 337 € 9 313 € 5 501 € 65 902 € 29 606 € 11 982 € Telecom expenses - € - € - € 2 628 € - € - € 10 512 € 5 256 € 2 628 € 28 908 € 15 768 € 5 256 € Office Full cost per year / person - € - € - € - € - € - € 10 644 € 5 322 € 2 661 € 30 295 € 16 524 € 5 508 € 4. IT SupportTelecom expenses - € - € - € - € - € - € 1 314 € 1 314 € - € 1 314 € 1 314 € 1 314 € Phone set & Computer for 3 year / person - € - € - € - € - € - € 1 109 € 1 109 € - € 1 148 € 1 148 € 1 148 € Office Full cost per year / person - € - € - € - € - € - € 2 661 € 2 661 € - € 2 754 € 2 754 € 2 754 € Web site hosting / year 1 700 € 1 700 € 1 700 € 17 780 € 12 280 € 12 280 € 41 140 € 33 440 € 28 440 € 94 140 € 69 140 € 56 440 € Platform evolution (10 days) 5 175 € 5 175 € 5 175 € 5 356 € 5 356 € 5 356 € 5 544 € 5 544 € 5 544 € 5 738 € 5 738 € 5 738 € 5. General administrationTelecom expenses - € - € - € - € - € - € 1 314 € 1 314 € 1 314 € 2 628 € 1 314 € 1 314 € Phone set & Computer for 3 year / person - € - € - € - € - € - € 1 109 € 1 109 € 1 109 € 2 295 € 1 148 € 1 148 € Office Full cost per year / person - € - € - € - € - € - € 2 661 € 2 661 € 2 661 € 5 508 € 2 754 € 2 754 € Office furnitures / year / person 800 € 800 € 800 € 1 000 € 800 € 800 € 2 200 € 1 050 € 800 € 4 000 € 2 100 € 1 200 € Others - € - € - € - € - € - € - € - € - € - € - € - € Accounting expertize 22€ for 1K€ revenue 3 883 € 2 330 € 1 165 € 12 198 € 7 766 € 4 879 € 32 111 € 16 309 € 9 633 € - € - € 20 273 € Legal & juridic per hour - € - € - € - € - € - € - € - € - € - € - € - € IT Maintenance/month 2 400 € 2 400 € 2 400 € 2 400 € 2 400 € 2 400 € - € - € 2 400 € - € - € - € Other expenses Per person/year - € - € - € 1 000 € - € - € 5 000 € 3 000 € 2 000 € 13 000 € 7 000 € 3 000 €
6.Total Invest 8 500 € 8 500 € 8 500 € 80 400 € 52 900 € 52 900 € 116 800 € 105 800 € 80 800 € 265 000 € 178 500 € 140 000 €
Payroll Detail 134 312 € 134 312 € 134 312 € 216 763 € 138 341 € 138 341 € 1 425 213 € 791 262 € 625 832 € 3 335 155 € 1 731 106 € 888 791 € General Management - € - € - € - € - € - € 111 677 € 105 930 € 103 503 € 281 091 € 118 215 € 107 372 € Training Person salary - € - € - € - € - € - € 152 982 € - € - € 78 786 € 78 786 € - € Quality Manager - € - € - € - € - € - € 76 491 € - € - € 78 786 € 78 786 € - €
Accouting & Finance persons (when outsourcing > 45K - € - € - € - € - € - € - € - € - € - € - € - € IT Support (Junior) - € - € - € - € - € - € 78 676 € 78 676 € - € 81 037 € 81 037 € 81 037 € Sales Forces fixed - € - € - € 74 263 € - € - € 305 964 € 152 982 € 76 491 € 787 856 € 393 928 € 157 571 € Variable sales incentive (%fee) - € - € - € 4 158 € - € - € 43 787 € 11 120 € 3 284 € 380 112 € 85 382 € 13 822 € Sales & Marketing Manager Incentive - € - € - € - € - € - € - € - € - € 38 011 € 17 076 € - € Sales & Marketing Manager Fixed salary(when sales > 2) - € - € - € - € - € - € - € - € - € 90 041 € 90 041 € - € Supply expert salary (general manager the 2 1st years) 82 400 € 82 400 € 82 400 € 84 872 € 84 872 € 84 872 € 87 418 € 87 418 € 87 418 € 90 041 € 90 041 € 90 041 € Knowledge Expert salary / year (Minijobs) 51 912 € 51 912 € 51 912 € 53 469 € 53 469 € 53 469 € - - - - - -Knowledge Expert salary / year (Full Time Jobs) - € - € - € - € - € - € 568 218 € 355 136 € 355 136 € 1 316 845 € 585 265 € 438 948 € Call Center Manager salary / Year (when > 3) - € - € - € - € - € - € - € - € - € 112 551 € 112 551 € - €
Financing OperationInterest expenses - € - € - € - € - € - € 5 841 €- 5 841 €- 2 920 €- 34 803 €- 10 978 €- 7 103 €-
0 585 € 524 € - € 1 935 € 1 379 € - € - € - € - € 19 049 € 12 704 € - €
Annex 19-56
INCOME STATEMENTS (3 SCENARIOS)
2009 2009 2009 2010 2010 2010 2011 2011 2011 2012
High Realistic Low High Realistic Low High Realistic Low High
Operating Revenue 176 876 € 106 126 € 53 063 € 559 142 € 355 993 € 223 657 € 1 494 388 € 758 979 € 448 316 € 5 309 900 €
Total Revenue 176 876 € 106 126 € 53 063 € 559 142 € 355 993 € 223 657 € 1 494 388 € 758 979 € 448 316 € 5 309 900 €
Cost of Sales 151 047 € 148 358 € 146 600 € 207 878 € 189 147 € 179 494 € 812 029 € 528 773 € 526 600 € 1 823 023 €
Gross Margin 23 705 € 44 357 €- 95 662 €- 329 039 € 151 496 € 28 812 € 630 933 € 188 406 € 113 834 €- 3 369 202 €
Gross Operating Profit 25 830 € 42 232 €- 93 537 €- 351 264 € 166 846 € 44 162 € 682 358 € 230 206 € 78 284 €- 3 486 877 €
Cost of sales 151 047 € 148 358 € 146 600 € 207 878 € 189 147 € 179 494 € 812 029 € 528 773 € 526 600 € 1 823 023 €
R&D - € - € - € - € - € - € - € - € - € - €
G&A 13 958 € 12 405 € 11 240 € 39 734 € 28 602 € 25 715 € 515 990 € 254 116 € 157 403 € 652 225 €
Selling (sales & mkg) 2 070 € 1 242 € 621 € 88 851 € 4 285 € 2 692 € 393 679 € 186 210 € 91 674 € 1 433 747 €
Advertising 0 0 0 0 0 0 0 0 0 0
Operating Profit 9 802 € 55 879 €- 105 398 €- 222 679 € 133 959 € 15 755 € 227 311 €- 210 120 €- 327 361 €- 1 400 906 €
Operating Profit before Depreciation (EBITDA) 9 802 € 55 879 €- 105 398 €- 222 679 € 133 959 € 15 755 € 227 311 €- 210 120 €- 327 361 €- 1 400 906 €
Depreciation 2 125 € 2 125 € 2 125 € 22 225 € 15 350 € 15 350 € 51 425 € 41 800 € 35 550 € 117 675 €
Operating Income After Depreciation 7 677 € 58 004 €- 107 523 €- 200 454 € 118 609 € 405 € 278 736 €- 251 920 €- 362 911 €- 1 283 231 €
Interest Income 585 € 524 € - € 1 935 € 1 379 € - € - € - € - € 19 049 €
Total Income Avail for Interest Expense (EBIT) 8 261 € 57 480 €- 107 523 €- 202 389 € 119 988 € 405 € 278 736 €- 251 920 €- 362 911 €- 1 302 279 €
Interest Expense - € - € - € - € - € - € 5 841 € 5 841 € 2 920 € 34 803 €
Income Before Tax (EBT) 8 261 € 57 480 €- 107 523 €- 202 389 € 119 988 € 405 € 284 576 €- 257 760 €- 365 831 €- 1 267 476 €
Income Taxes 2 891 € - € - € 70 836 € 41 996 € 142 € - € - € - € 443 617 €
Net Income from Continuing Operations 5 370 € 57 480 €- 107 523 €- 131 553 € 77 992 € 263 € 278 736 €- 251 920 €- 362 911 €- 858 662 €
Net Income from Total Operations 5 370 € 57 480 €- 107 523 €- 131 553 € 77 992 € 263 € 284 576 €- 257 760 €- 365 831 €- 823 860 €
Total Net Income 5 370 € 57 480 €- 107 523 €- 131 553 € 77 992 € 263 € 284 576 €- 257 760 €- 365 831 €- 823 860 €
Tax Rate 35% 35% 35% 35% 35% 35% 35% 35% 35% 35%
2013 2013 2013High Realistic Low
13 601 785 € 3 925 065 € 1 478 455 €
13 601 785 € 3 925 065 € 1 478 455 € 3 077 891 € 1 042 128 € 651 482 €
10 121 594 € 2 750 637 € 756 423 € 10 523 894 € 2 882 937 € 826 973 €
3 077 891 € 1 042 128 € 651 482 € - € - € - €
1 566 924 € 506 397 € 339 527 € 2 726 302 € 750 001 € 312 453 €
0 0 06 230 668 € 1 626 539 € 174 993 €
6 230 668 € 1 626 539 € 174 993 €
402 300 € 132 300 € 70 550 € 5 828 368 € 1 494 239 € 104 443 €
40 597 € 31 082 € 24 418 €
5 868 965 € 1 525 321 € 128 861 €
170 120 € 47 375 € 9 845 € 5 698 844 € 1 477 946 € 119 016 € 1 994 595 € 517 281 € 41 655 € 3 874 369 € 1 008 040 € 87 205 € 3 704 249 € 960 665 € 77 360 €
3 704 249 € 960 665 € 77 360 €
35% 35% 35%
Annex 19-57
INPUT DATA BALANCE SHEET
Opening BalanceBalances brought forward at 1st January 2009
Fixed asset cost 0Fixed asset accumulated depreciation 0Inventory 0Trade receivables 0Cash 0Senior debt 0Trade Payables 0Taxes Payable 0Retained earnings 0
Balance sheet DataCurrent asset & liabilitiesInventory days held (days inventory usage) 0Receivable days (days of sales made) 30Payable days (days of purchases made 30Days in year 365
Y1 Y2 Y2 Y3 Y3 Y4 Y4 Y5 Y5High Realistic Low High Realistic Low High Realistic Low High Realistic Low High Realistic
Interest RatesRisk Free Rate 3,50% 3,50% 3,50% 3,50% 3,50% 3,50% 3,50% 3,50% 3,50% 3,00% 3,00% 3,00% 3,00% 3,00%Overdraft Margin 14,00% 14,00% 14,00% 14,00% 14,00% 14,00% 13,00% 13,00% 13,00% 13,00% 13,00% 13,00% 11,00% 11,00%Deposit Rate 2,00% 2,00% 2,00% 2,00% 2,00% 2,00% 1,75% 1,75% 1,75% 1,75% 1,75% 1,75% 1,75% 1,75%Default Spread (Senior Debt Margin) 12,00% 12,00% 12,00% 12,00% 12,00% 12,00% 12,00% 12,00% 12,00% 10,00% 10,00% 10,00% 10,00% 10,00%Loan KFW 6,80% 6,80% 6,80%Loan 3Net Principal begening of period 38 000 € 38 000 € 19 000 € 36 730 € 36 730 € 18 365 € 35 262 € 35 262 € Reimbursement for the period 1 270 €- 1 270 €- 635 €- 1 467 €- 1 467 €- 734 €- 1 695 €- 1 695 €- Interest for the period 5 841 €- 5 841 €- 2 920 €- 5 598 €- 5 598 €- 2 799 €- 5 329 €- 5 329 €- Net principal end of period 36 730 € 36 730 € 18 365 € 35 262 € 35 262 € 17 631 € 33 567 € 33 567 € Loan Period 1 1 1 2 2 2 3 3 Loan 4Net Principal begening of period 190 000 € 35 000 € 28 000 € 183 648 € 33 830 € Reimbursement for the period 6 352 €- 1 170 €- 1 059 €- 7 337 €- 1 352 €- Interest for the period 29 205 €- 5 380 €- 4 304 €- 27 991 €- 5 156,23 €- Net principal end of period 183 648 € 33 830 € 26 941 € 176 311 € 32 478 € Loan Period 1 1 1 2 2 Loan 5Net Principal begening of period 890 000 € 240 000 € Reimbursement for the period 29 755 €- 8 024 €- Interest for the period 136 800 €- 36 890 €- Net principal end of period 860 245 € 231 976 € Loan Period 1 1
Net debt End of period - € - € - € - € - € - € 36 730 € 36 730 € 18 365 € 218 910 € 69 092 € 44 572 € 1 070 123 € 298 022 € Interest expenses - € - € - € - € - € - € 5 841 €- 5 841 €- 2 920 €- 34 803 €- 10 978 €- 7 103 €- 170 120 €- 47 375 €- Net Reimbursement of the period - € - € - € - € - € - € 1 270 €- 1 270 €- 635 €- 7 820 €- 2 638 €- 1 792 €- 38 787 €- 11 070 €- Dibursment of loan - € - € - € - € - € - € 38 000 € 38 000 € 19 000 € 190 000 € 35 000 € 28 000 € 890 000 € 240 000 €
8 000 € 5 000 € 6 000 € 29 000 € 17 000 € 11 000 € #NOMBRE! #NOMBRE! - € - € - € 22 000 € 4 000 € Target leverage 1,25 1,25 1,25 1,25 1,25 1,25 1,25 1,25 1,25 1,25 1,25 1,25 1,25 1,25 Debt proportion 2 693 € 2 276 € 1 985 € 9 838 € 6 879 € 5 717 € 61 101 € 51 346 € 30 681 € 266 080 € 94 006 € 63 877 € 1 164 114 € 328 902 € Total Assets (TA) 58 063 € 39 796 € 40 462 € 196 761 € 122 391 € 87 458 € 304 447 € 256 098 € 151 590 € 1 333 285 € 472 015 € 319 903 € 5 935 568 € 1 667 576 € Financial levarage 1,05 1,06 1,05 1,05 1,06 1,07 1,25 1,25 1,25 1,25 1,25 1,25 1,24 1,25 Financial InstrumentsNet Income 5 370 € 57 480 €- 107 523 €- 131 553 € 77 992 € 263 € 284 576 €- 257 760 €- 365 831 €- 823 860 € 173 258 € 235 883 €- 3 704 249 € 960 665 € Investment Portfolio in WLM Firms (%NI) 20% 0 0 0 26 311 € 15 598 € 53 € - € - € - € 164 772 € 34 652 € 740 850 € 192 133 € Accumulated Book value Investment 26 311 € 15 598 € 53 € 26 311 € 15 598 € 53 € 191 082 € 50 250 € 53 € 931 932 € 242 383 € Coumpounded Value 1 579 € 936 € 3 € 31 236 € 18 518 € 63 € 9 886 € 2 079 € - € 229 167 € 50 010 € Coumpouded intrument End of period 27 889 € 16 534 € 56 € 174 658 € 36 731 € 970 016 € 242 143 €
Annex 19-58
BALANCE SHEET & C ASH FLOW STATEMENT BACKING STAGES (3 SCENARIOS)
Y1 Y2 Y3 Y4 Y5High Realistic Low High Realistic Low High Realistic Low High Realistic Low High Realistic
Revenues 176 876 106 126 53 063 559 142 355 993 223 657 1 494 388 758 979 448 316 5 309 900 2 385 451 965 436 13 601 785 3 925 065
Trade receivables closing balancesOpening trade receivables 0 0 0 14 538 8 723 4 361 45 957 29 260 18 383 122 826 62 382 36 848 436 430 196 064 Sales mades 176 876 106 126 53 063 559 142 355 993 223 657 1 494 388 758 979 448 316 5 309 900 2 385 451 965 436 13 601 785 3 925 065 Receivables Days 30 30 30 30 30 30 30 30 30 30 30 30 30 30Days in year 365 365 365 365 365 365 365 365 365 365 365 365 365 365
Closing trade receivables 14 538 8 723 4 361 45 957 29 260 18 383 122 826 62 382 36 848 436 430 196 064 79 351 1 117 955 322 608
Cash received from customers 162 338 - 97 403 - 48 702 - 527 723 - 335 456 - 209 635 - 1 417 518 - 725 857 - 429 851 - 4 996 296 - 2 251 769 - 922 933 - 12 920 260 - 3 798 521 -
Trade Payables closing balancesOpening trade payables 0 0 0 2 693 € 2 276 € 1 985 € 9 838 € 6 879 € 5 717 € 24 368 € 14 617 € 12 316 € 47 165 € 24 912 € Purchases made 32 763 € 27 693 € 24 149 € 119 700 € 83 693 € 69 560 € 296 483 € 177 836 € 149 845 € 573 837 € 303 094 € 234 875 € 1 143 459 € 375 658 € Payables Days 30 30 30 30 30 30 30 30 30 30 30 30 30 30Days in year 365 365 365 365 365 365 365 365 365 365 365 365 365 365
Closing trade receivables 2 693 € 2 276 € 1 985 € 9 838 € 6 879 € 5 717 € 24 368 € 14 617 € 12 316 € 47 165 € 24 912 € 19 305 € 93 983 € 30 876 €
Cash paid to suppliers 30 070 € 25 416 € 22 164 € 112 554 € 79 090 € 65 828 € 281 952 € 170 099 € 143 246 € 551 041 € 292 799 € 227 886 € 1 096 640 € 369 693 €
Annex 19-59
BALANCE SHEET (3 SCENARIOS)
All amounts € , 2009 2009 2009 2010 2010 2010 2011 2011 2011 2012 2012
High Realistic Low High Realistic Low High Realistic Low High Realistic
Assets
Cash and Equivalents (yc blocked account) 37 150 € 24 698 € 29 726 € 59 943 € 33 608 € 25 097 € 25 385 € 70 192 € 25 514 € 428 523 € 25 701 €
Receivables 14 538 € 8 723 € 4 361 € 45 957 € 29 260 € 18 383 € 122 826 € 62 382 € 36 848 € 436 430 € 196 064 €
Inventories 0 0 0 0 0 0 0 0 0 0 0
Other Current Assets 0 0 0 0 0 0 0 0 0 0 0
Total Current Assets 51 688 € 33 421 € 34 087 € 105 900 € 62 867 € 43 480 € 148 212 € 132 574 € 62 362 € 864 953 € 221 765 €
Gross Fixed Assets (Plant, Prop, & Equip,) 8 500 € 8 500 € 8 500 € 88 900 € 61 400 € 61 400 € 205 700 € 167 200 € 142 200 € 470 700 € 345 700 €
Accumulated Depreciation & Depletion 2 125 € 2 125 € 2 125 € 24 350 € 17 475 € 17 475 € 75 775 € 59 275 € 53 025 € 193 450 € 145 700 €
Net Fixed Assets 6 375 € 6 375 € 6 375 € 64 550 € 43 925 € 43 925 € 129 925 € 107 925 € 89 175 € 277 250 € 200 000 €
Intangibles & other Non current assets - € - € - € 26 311 € 15 598 € 53 € 26 311 € 15 598 € 53 € 191 082 € 50 250 €
Total Non Current Assets
Total Assets 58 063 € 39 796 € 40 462 € 196 761 € 122 391 € 87 458 € 304 447 € 256 098 € 151 590 € 1 333 285 € 472 015 €
Liabilities
Payables 2 693 € 2 276 € 1 985 € 9 838 € 6 879 € 5 717 € 24 368 € 14 617 € 12 316 € 47 165 € 24 912 €
Short Term Debt - € - € - € - € - € - € - € - € - € - € - €
Accrued Accounts - € - € - € - € - € - € - € - € - € - € - €
Other Current Liabilities - € - € - € - € - € - € - € - € - € - € - €
Total Current Liabilities 2 693 € 2 276 € 1 985 € 9 838 € 6 879 € 5 717 € 24 368 € 14 617 € 12 316 € 47 165 € 24 912 €
Long Term Debt - € - € - € - € - € - € 36 730 € 36 730 € 18 365 € 218 910 € 69 092 €
Other Non-Current Liabilities 0 0 0 0 0 0 0 0 0 0 0
Total Non-Current Liabilities - € - € - € - € - € - € 36 730 € 36 730 € 18 365 € 218 910 € 69 092 €
Total Liabilities 2 693 € 2 276 € 1 985 € 9 838 € 6 879 € 5 717 € 61 098 € 51 346 € 30 681 € 266 075 € 94 004 €
Stockholder's Equity
Ordinary Shares 25 000 € 70 000 € 121 000 € 25 000 € 70 000 € 164 000 € 366 000 € 417 000 € 569 000 € 366 000 € 417 000 €
Locked in capital 25 000 € 25 000 € 25 000 € 25 000 € 25 000 € 25 000 € 25 000 € 25 000 € 25 000 € 25 000 € 25 000 €
Retained Earnings (accum deficit) 5 370 € 57 480 €- 107 523 €- 136 923 € 20 512 € 107 260 €- 147 654 €- 237 249 €- 473 091 €- 676 206 € 63 991 €-
Total Equity 55 370 € 37 520 € 38 477 € 186 923 € 115 512 € 81 740 € 243 346 € 204 751 € 120 909 € 1 067 206 € 378 009 €
Total Liabilities & Stock Equity 58 063 € 39 796 € 40 462 € 196 761 € 122 391 € 87 458 € 304 444 € 256 098 € 151 590 € 1 333 280 € 472 013 €
Retained Earnings
Opening retained earnings 0 0 0 5 370 € - 57 480 € - 107 523 € 136 923 € 20 512 € - 107 260 € - 147 654 € - 237 249 €
Net profit of the year 5 370 € - 57 480 € - 107 523 € 131 553 € 77 992 € 263 € - 284 576 € - 257 760 € - 365 831 € 823 860 € 173 258 €
Preference Dividends 0 0 0 0 0 0 0 0 0 0 0
Ordinary Dividends 0 0 0 0 0 0 0 0 0 0 0
Closing retained earnings 5 370 € - 57 480 € - 107 523 € 136 923 € 20 512 € - 107 260 € - 147 654 € - 237 249 € - 473 091 € 676 206 € - 63 991 €
2012 2013 2013 2013
Low High Realistic Low
81 875 € 2 872 231 € 851 385 € 190 644 €
79 351 € 1 117 955 € 322 608 € 121 517 €
0 0 0 0
0 0 0 0
161 226 € 3 990 186 € 1 173 993 € 312 161 €
282 200 € 1 609 200 € 529 200 € 282 200 €
123 575 € 595 750 € 278 000 € 194 125 €
158 625 € 1 013 450 € 251 200 € 88 075 €
53 € 931 932 € 242 383 € 15 525 €
319 903 € 5 935 568 € 1 667 576 € 415 760 €
19 305 € 93 983 € 30 876 € 20 606 €
- € - € - € - €
- € - € - € - €
- € - € - € - €
19 305 € 93 983 € 30 876 € 20 606 €
44 572 € 1 070 123 € 298 022 € 61 767 €
0 0 0 0
44 572 € 1 070 123 € 298 022 € 61 767 €
63 877 € 1 164 106 € 328 898 € 82 373 €
940 000 € 366 000 € 417 000 € 940 000 €
25 000 € 25 000 € 25 000 € 25 000 €
708 974 €- 4 380 454 € 896 674 € 631 614 €-
256 026 € 4 771 454 € 1 338 674 € 333 386 €
319 903 € 5 935 560 € 1 667 572 € 415 759 €
- 473 091 € 676 206 € - 63 991 € - 708 974 €
- 235 883 € 3 704 249 € 960 665 € 77 360 €
0 0 0 0
0 0 0 0- 708 974 € 4 380 454 € 896 674 € - 631 614 €
Annex 19-60
CASH FLOW STATEMENT (3 SCENARIOS)
2009 2009 2009 2010 2010 2010 2011 2011 2011 2012 2012
All amounts in € , High Realistic Low High Realistic Low High Realistic Low High Realistic
Operating Activities
Cash received from customers 162 338 € 97 403 € 48 702 € 527 723 € 335 456 € 209 635 € 1 417 518 € 725 857 € 429 851 € 4 996 296 € 2 251 769 €
Cash paid to suppliers 30 070 €- 25 416 €- 22 164 €- 112 554 €- 79 090 €- 65 828 €- 281 952 €- 170 099 €- 143 246 €- 551 041 €- 292 799 €-
Cash paid to employees 134 312 €- 134 312 €- 134 312 €- 216 763 €- 138 341 €- 138 341 €- 1 425 213 €- 791 262 €- 625 832 €- 3 335 155 €- 1 731 106 €-
Cash generated from operation 2 043 €- 62 325 €- 107 774 €- 198 406 € 118 025 € 5 466 € 289 647 €- 235 504 €- 339 227 €- 1 110 100 € 227 864 €
Interest paid - € - € - € - € - € - € 5 841 €- 5 841 €- 2 920 €- 34 803 €- 10 978 €-
Income tax paid 2 891 €- - € - € 70 836 €- 41 996 €- 142 €- - € - € - € 443 617 €- 93 293 €-
Cash flow from operating activities 4 935 €- 62 325 €- 107 774 €- 127 570 € 76 029 € 5 324 € 295 488 €- 241 345 €- 342 148 €- 631 681 € 123 593 €
Investing activities
Proceeds from sale of eqtp plants - € - € - € - € - € - € - € - € - € - € - €
Interest received 585 € 524 € - € 1 935 € 1 379 € - € - € - € - € 19 049 € 12 704 €
Purchase of equipement & plants -8500 8 500 €- 8 500 €- 80 400 €- 52 900 €- 52 900 €- 116 800 €- 105 800 €- 80 800 €- 265 000 €- 178 500 €-
Investment In WLF financial Instrument - € - € - € 26 311 €- 15 598 €- 53 €- - € - € - € 164 772 €- 34 652 €-
Acquisition of goodwill - € - € - € - € - € - € - € - € - € - € - €
Cash Flow from investing activities 7 915 €- 7 976 €- 8 500 €- 104 776 €- 67 120 €- 52 953 €- 116 800 €- 105 800 €- 80 800 €- 410 723 €- 200 448 €-
Financing Activities
Proceeds from issuance of share capital 25 000 € 70 000 € 121 000 € 43 000 € 341 000 € 347 000 € 405 000 €
Lock in capital (Gmbh) 25 000 € 25 000 € 25 000 €
Change in bank overdraft - € - € - € - € - € - € - € - € - € - € - €
Proceeds from non-current borrowings - € - € - € - € - € - € 38 000 € 38 000 € 19 000 € 190 000 € 35 000 €
Repayement of borrowings - € - € - € - € - € - € 1 270 €- 1 270 €- 635 €- 7 820 €- 2 638 €-
Dividends paid - € - € - € - € - € - € - € - € - € - € - €
Cash flow from financing activities 50 000 € 95 000 € 146 000 € - € - € 43 000 € 377 730 € 383 730 € 423 365 € 182 180 € 32 362 €
Net increase/decrease in cash and cash equivalent37 150 € 24 698 € 29 726 € 22 794 € 8 909 € 4 628 €- 34 558 €- 36 585 € 417 € 403 138 € 44 492 €-
Cash & cash equivalent at begening of the year 0 0 0 37 150 € 24 698 € 29 726 € 59 943 € 33 608 € 25 097 € 25 385 € 70 192 €
Cash & cash equivalent at end of the year 37 150 € 24 698 € 29 726 € 59 943 € 33 608 € 25 097 € 25 385 € 70 192 € 25 514 € 428 523 € 25 701 €
2012 2013 2013 2013Low High Realistic Low
922 933 € 12 920 260 € 3 798 521 € 1 436 289 € 227 886 €- 1 096 640 €- 369 693 €- 249 403 €- 888 791 €- 6 227 655 €- 1 922 866 €- 1 052 757 €-
193 744 €- 5 595 964 € 1 505 962 € 134 129 €
7 103 €- 170 120 €- 47 375 €- 9 845 €- - € 1 994 595 €- 517 281 €- 41 655 €-
200 847 €- 3 431 248 € 941 306 € 82 628 €
- € - € - € - € - € 40 597 € 31 082 € 24 418 €
140 000 €- 1 138 500 €- 183 500 €- 0- € 740 850 €- 192 133 €- 15 472 €- - € - € - € - €
140 000 €- 1 838 753 €- 344 551 €- 8 946 €
371 000 €
- € - € - € - € 28 000 € 890 000 € 240 000 € 20 000 € 1 792 €- 38 787 €- 11 070 €- 2 805 €-
- € - € - € - €
397 208 € 851 213 € 228 930 € 17 195 €
56 361 € 2 443 709 € 825 684 € 108 769 €
25 514 € 428 523 € 25 701 € 81 875 € 81 875 € 2 872 231 € 851 385 € 190 644 €
Annex 19-61
VALUATION & PERFORMANCE
2009 2009 2009 2010 2010 2010 2011 2011 2011 2012 2012
High Realistic Low High Realistic Low High Realistic Low High Realistic
ROE 9,70% -153,20% -279,45% 70,38% 67,52% 0,32% -116,94% -125,89% -302,57% 77,20% 45,83%
with ROE = m*t*l
Operating efficiency = NI/SA 3% -54% -203% 24% 22% 0% -19% -34% -82% 16% 7%
Asset use efficiency= SA/TA 305% 267% 131% 284% 291% 256% 491% 296% 296% 398% 505%
Financial Leverage = TA/EQ 1,05 1,06 1,05 1,05 1,06 1,07 1,25 1,25 1,25 1,25 1,25
with
Net Income(NI) 5 370 € 57 480 €- 107 523 €- 131 553 € 77 992 € 263 € 284 576 €- 257 760 €- 365 831 €- 823 860 € 173 258 €
Sales (SA) 176 876 € 106 126 € 53 063 € 559 142 € 355 993 € 223 657 € 1 494 388 € 758 979 € 448 316 € 5 309 900 € 2 385 451 €
Total Assets (TA) 58 063 € 39 796 € 40 462 € 196 761 € 122 391 € 87 458 € 304 447 € 256 098 € 151 590 € 1 333 285 € 472 015 €
Equity (EQ) 55 370 € 37 520 € 38 477 € 186 923 € 115 512 € 81 740 € 243 346 € 204 751 € 120 909 € 1 067 206 € 378 009 €
CC 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10%
ROE - CC 0,20% -162,70% -288,95% 60,88% 58,02% -9,18% -126,44% -135,39% -312,07% 67,70% 36,33%
2010 2010 2010 2010 2010 2010 2010 2010 2010 2010 2010
ROA 9% -144% -266% 67% 64% 0% -93% -101% -241% 62% 37%
Beta 1,9 1,9 1,9 1,9 1,9 1,9 1,9 1,9 1,9 1,9 1,9
Risk free Rate 3,5% 3,5% 3,5% 3,5% 3,5% 3,5% 3,5% 3,5% 3,5% 3,5% 3,5%
Risk Premium 6% 6% 6% 6% 6% 6% 6% 6% 6% 6% 6%
Market Practice 17% 17% 17% 17% 17% 17% 17% 17% 17% 17% 17%
Default spread 12% 12% 12% 12% 12% 12% 12% 12% 12% 10% 10%
WACC 32% 32% 32% 32% 32% 32% 29% 29% 29% 28% 28%
ROA - WACC -23% -176% -298% 35% 32% -32% -123% -129% -270% 34% 8%
EBITDA 9 802 € 55 879 €- 105 398 €- 222 679 € 133 959 € 15 755 € 227 311 €- 210 120 €- 327 361 €- 1 400 906 € 351 250 €
EBITDA Margin 5,5% -52,7% -198,6% 39,8% 37,6% 7,0% -15,2% -27,7% -73,0% 26,4% 14,7%
Profit margin (NI/SA) 3,0% -54,2% -202,6% 23,5% 21,9% 0,1% -19,0% -34,0% -81,6% 15,5% 7,3%
2013 2013 2013
High Realistic Low
77,63% 71,76% 23,20%
27% 24% 5%
229% 235% 356%
1,24 1,25 1,25
3 704 249 € 960 665 € 77 360 €
13 601 785 € 3 925 065 € 1 478 455 €
5 935 568 € 1 667 576 € 415 760 €
4 771 454 € 1 338 674 € 333 386 €
10% 10% 10%
68,13% 62,26% 13,70%
2010 2010 2010
62% 58% 19%
1,9 1,9 1,9
3,5% 3,5% 3,5%
6% 6% 6%
17% 17% 17%
10% 10% 10%
28% 28% 28%
35% 30% -10%
6 230 668 € 1 626 539 € 174 993 €
45,8% 41,4% 11,8%
27,2% 24,5% 5,2%
High Realistic Low
ROE 69,26% 43,22% -76,05%
with ROE = m*t*l
Operating efficiency = NI/SA 21% 12% -20%
Asset use efficiency= SA/TA 270% 294% 312%
Financial Leverage = TA/EQ 124% 123% 122%
with
Net Income(NI) 4 380 454 € 896 674 € 631 614 €-
Sales (SA) 21 142 091 € 7 531 614 € 3 168 927 €
Total Assets (TA) 7 828 124 € 2 557 875 € 1 015 173 €
Equity (EQ) 6 324 298 € 2 074 466 € 830 539 €
CC 10% 10% 10%
ROE - CC 59,76% 33,72% -85,55%
ROA 56% 35% -62%
Beta 1,9 1,9 1,9
Risk free Rate 3,5% 3,5% 3,5%
Risk Premium 6,0% 6,0% 6,0%
Market Practice 17,0% 17,0% 17,0%
Default spread 11,2% 11,2% 11,2%
WACC 29,7% 29,7% 29,9%
ROA - WACC 26% 5% -92%
EBITDA 7 636 744 € 1 845 749 € 400 241 €-
EBITDA Margin 36,1% 24,5% -12,6%
Profit margin (NI/SA) 20,7% 11,9% -19,9%
Five years average
Five years average
Annex 19-62
FIRM VALUATION (NET PRESENT VALUE ON 3 SCENARIOS)
2009 2009 2009 2010 2010 2010 2011 2011 2011 2012 2012 2012 2013 2013 2013
Hypothesis High Realistic Low High Realistic Low High Realistic Low High Realistic Low High Realistic LowWorking Capital
Accounts Receivable 14 538 € 8 723 € 4 361 € 45 957 € 29 260 € 18 383 € 122 826 € 62 382 € 36 848 € 436 430 € 196 064 € 79 351 € 1 117 955 € 322 608 € 121 517 € Accounts Payable 2 693 € 2 276 € 1 985 € 9 838 € 6 879 € 5 717 € 24 368 € 14 617 € 12 316 € 47 165 € 24 912 € 19 305 € 93 983 € 30 876 € 20 606 €
Investment & Depreciation
Total Capex 8500 8500 8500 80400 52900 52900 116800 105800 80800 265000 178500 140000 1138500 183500 05 yr Deprec 2125 2125 2125 22225 15350 15350 51425 41800 35550 117675 86425 70550 402300 132300 70550
Annual Depreciation 2125 2125 2125 22225 15350 15350 51425 41800 35550 117675 86425 70550 402300 132300 70550
YEAR 1 1 1 2 2 2 3 3 3 4 4 4 5 5 5 High Realistic
Operating Cash FlowEBIT after Tax 5370 -57480 -107523 131553 77992 263 -278736 -251920 -362911 858662 184236 -228780 3874369 1008040 87205Depreciation 2125 2125 2125 22225 15350 15350 51425 41800 35550 117675 86425 70550 402300 132300 70550Interest to Debt 0 0 0 0 0 0 -5841 -5841 -2920 -34803 -10978 -7103 -170120 -47375 -9845
Working CapitalReceivables -14538 -8723 -4361 -31419 -20537 -14021 -76870 -33122 -18465 -313604 -133683 -42503 -681525 -126544 -42166Payables 2693 2276 1985 7146 4603 3732 17223 10014 8584 29942 14898 10721 64041 15978 9885
InvestmentCapex -8500 -8500 -8500 -80400 -52900 -52900 -116800 -105800 -80800 -265000 -178500 -140000 -1138500 -183500 0
0,65 CF=Perp
Free Cash Flows -12850 -70302 -116274 49104 24508 -47576 -409598 -344869 -420963 392873 -37602 -337115 2350565 798899 115629 1527867 519284
Cum FCF -12850 -70302 -116274 36254 -45794 -163850 -360494-320361 -468539 -16725 -382470 -758077 2743438 761297 -221486
Perpetual Discount Rate 15% 15% PGRate
Discount Rate 32% 32% 32% 32% 32% 32% 29% 29% 29% 28% 28% 28% 28% 28% 28% 1,5% 1,5%
0,7582 0,7582 0,7582 0,5748 0,5748 0,5748 0,4454 0,4470 0,4455 0,3481 0,3484 0,3468 0,2727 0,2728 0,2703
Present Values FCF -9742 -53299 -88153 28225 14087 -27346 -182453 -154166 -187538 136760 -13099 -116901 640930 217950 31256Residual Value 3033713 1031623
NPV 3 647 432 1 043 096 -240 740 11125923
YEAR 1 1 1 2 2 2 3 3 3 4 4 4 5 5 5 BE BE
Annual Cash Flow -12 850 -70 302 -116 274 49 104 24 508 -47 576 -409 598 -344 869 -420 963 392 873 -37 602 -337 115 2 350 565 798 899 115 629 1 527 867 519 284Cumulated Free Cash Flow -12 850 -70 302 -116 274 36 254 -45 794 -163 850 -360 494 -320 361 -468 539 -16 725 -382 470 -758 077 2 743 438 761 297 -221 486Cumulated NPV Free Cash Flow -9 742 -53 299 -88 153 18 482 -39 212 -115 500 -163 971 -193 379 -303 038 -27 211 -206 477 -419 939 613 719 11 473 -388 683Operating Profit (EBIT) 8 261 -57 480 -107 523 202 389 119 988 405 -278 736 -251 920 -362 911 1 302 279 277 529 -228 780 5 868 965 1 525 321 128 861Cumulated Income 5 370 -57 480 -107 523 136 923 20 512 -107 260 -153 024 -179 769 -365 568 539 283 -84 503 -601 714 4 528 108 1 133 923 -158 523Net Income 5 370 -57 480 -107 523 131 553 77 992 263 -284 576 -257 760 -365 831 823 860 173 258 -235 883 3 704 249 960 665 77 360
Default spread 12,00% 12,00% 12,00% 12,00% 12,00% 12,00% 12,00% 12,00% 12,00% 10,00% 10,00% 10,00% 10,00% 10,00% 10,00% 10,00%1 - Taxe rate 65% 65% 65% 65% 65% 65% 65% 65% 65% 65% 65% 65% 65% 65% 65% 65%Risk free Rate 3,5% 3,5% 3,5% 3,5% 3,5% 3,5% 3,5% 3,5% 3,5% 3,5% 3,5% 3,5% 3,5% 3,5% 3,5% 3,5%Market Practice 17% 17% 17% 17% 17% 17% 17% 17% 17% 17% 17% 17% 17% 17% 17% 3%Risk Premium 6% 6% 6% 6% 6% 6% 6% 6% 6% 6% 6% 6% 6% 6% 6% 6%Beta 1,9 1,9 1,9 1,9 1,9 1,9 1,9 1,9 1,9 1,9 1,9 1,9 1,9 1,9 1,9 1,9 Cost of equity 32% 32% 32% 32% 32% 32% 32% 32% 32% 32% 32% 32% 32% 32% 32% 18%Cost of debt 10,08% 10,08% 10,08% 10,08% 10,08% 10,08% 10,08% 10,08% 10,08% 8,78% 8,78% 8,78% 8,78% 8,78% 8,78% 8,78%
Equity / (Debt + Equity) 1,00 1,00 1,00 1,00 1,00 1,00 0,87 0,85 0,87 0,83 0,85 0,85 0,82 0,82 0,84 0,70 Debt (Debt + Equity) - - - - - - 0,13 0,15 0,13 0,17 0,15 0,15 0,18 0,18 0,16 0,30
Perpetual Growth
Annex 20-63
20. ANNEX 20 EXAMPLES OF PRICES FOR BANNERS ON WEBSITES
Monthly Advertisement Rates
Scope Including index page and all
subsequent pages in each section
Top Banner 468×60
Side Button 120×60
Bottom Banner 468×60
Front Page
including all pages at the root level
such as news, chat, and search.
$1,250/mo N/A $500/mo
Forum $1,000/mo $500/mo $250/mo
Units and Constants $1,000/mo $500/mo $250/mo
Formulas $800/mo $400/mo $200/mo
Materials $800/mo $400/mo $200/mo
Design Center $500/mo $250/mo $125/mo
Mathematics $500/mo $250/mo $125/mo
Processes $300/mo $150/mo $75/mo
All rates effective 12/1/2001. Rates are subject to changes without prior notice.
ALL CAMPAIGNS ARE INVOICED UPON POSTING. AT THE END OF EACH MONTH, A
SUMMARY WILL BE SENT TO ALL ADVERTISERS DETAILING THE NUMBER OF
IMPRESSIONS AND CLICK-THROUGH RATES FOR THEIR ADS.
HowHowHowHow much much much much do banner ads cost?do banner ads cost?do banner ads cost?do banner ads cost?
Home > How much
Banner ads are like everything else in life: You get what you pay
for...Quality doesn't come cheap.You get the picture. But, at the same
time, we believe we offer some of the best valuevaluevaluevalue on the Web for
Annex 20-64
professional awardawardawardaward----winningwinningwinningwinning banner design and production.
TermsTermsTermsTerms
If you pay in advance, get an extra 5% OFF quoted price AND your If you pay in advance, get an extra 5% OFF quoted price AND your If you pay in advance, get an extra 5% OFF quoted price AND your If you pay in advance, get an extra 5% OFF quoted price AND your
order gets PRIORITY. Order three or more banners and alsorder gets PRIORITY. Order three or more banners and alsorder gets PRIORITY. Order three or more banners and alsorder gets PRIORITY. Order three or more banners and also get 5% o get 5% o get 5% o get 5%
OFF.OFF.OFF.OFF.
RateRateRateRate card card card card
We do all sizes, just ask.
New prices take effect Jan. 1, 2007
Size Animated Price
YES
$75.00
NO
$75.00
468 x 60 IMU - (Full Banner)
120 x 240 IMU - (Vertical Banner)
180 x 150 IMU - (Rectangle)
250 x 250 IMU - (Square Pop-Up)
234 x 60 IMU - (Half Banner)
88 x 31 IMU - (Micro Bar)
120 x 90 IMU - (Button 1)
120 x 60 IMU - (Button 2)
125 x 125 IMU - (Square Button)
FLASH $225.00
* A 5% discount is given for orders of three or more animated .gif banners.
There is no price break for flash.
Size Animated Price
Yes/No $90.00
Annex 20-65
FLASH $250.00
* A 5% discount is given for orders of three or more animated .gif banners.
There is no price break for flash.
Size Animated Price
HTML email
Samples here
Yes/No $199.95
Size Animated Price
Landing page Yes/No $500.00
* A 5% discount is given for orders of three or more banners.
SourceSourceSourceSource files files files files
Sourcce .PSD files can be obtained for $25 each.
TurnaroundTurnaroundTurnaroundTurnaround time time time time
The turn-around time for a normal job, up to three banner ads, is around
seven days. If we get them done sooner, you'll receive them sooner.
Banner ads can be produced faster, but at a premium.
BannerBannerBannerBanner placement placement placement placement
I can also do research and place your banner ads for you. Market
research as to the best sites to place your banners is $50 an hour with
a minimum of two hours. This offer is for creative clients only. Also, my
fee is 15% of the media buy (e.g., you spend $1000, my fee is $150).
Annex 20-66
1. To be effective, your banner ad must be displayed on web pages that receive a high volume of
web traffic. Also, the banner ad should be visible on the initial page load, window frame.
2. Your banner advertising display must be entirely relevant to the material and content that exists
on the page it is displayed.
Fill these shoes first and foremost and you'll run away with a substantial increase in genuine targeted
visitors to your website. Properly executed, banner ad displays can pay off where all too often buried text
links go unnoticed.
Naturally, your banner ad display should be a high quality graphic- crisp, clean and professional looking.
It should easily state its purpose and request an action. Avoid excessive flare, fan-fare, blinking and
flashing episodes. Banner ads should closely match and fit easily into the web page theme and the flow
of the page design.
Your Advertising Banner Arsenal
There are many, many banner ad graphic programs to choose from, should you decide to take the time to
create your own banner ads. If you're not truly creative you'll probably be wasting valuable time, because
many high-traffic volume web sites will more than likely reject your creations. It's best to leave banner
ad creations to the website's graphics team. They should know what's best to fit their site's page theme
and design. Besides that, oftentimes you'll need more than a few different designs, colors and in some
cases different sizes.
What does banner advertising cost?
Website banner advertising rates vary from site to site. Primarily there three payment types.
1. Cost per thousand impressions (views) - You are charged a fixed fee for every 1,000 people who
see your ad, regardless if they click it.
2. Cost per click - You are charged a fee for each person who clicks on your banner ad, sending
them to your site.
3. Cost per visitor - You are charged for each visitor that is delivered to your website.
Annex 21-67
21. ANNEX 21 DEFAULT SPREAD RISK
Class Tranche Tranche Tranche Rating Launch spread Weighted average Life
(EURm) % CE % (Moody?s/ S&P)
A 137,8 69,07% 30,92% [Aaa]/[AAA] 3m Euribor
+0.28%
[6,50]
years
B 20.0 10,02% 20,90% [Aa2]/[AA] 3m Euribor
+0.50%
[6,75]
years
C 10.5 5,26% 15,64% [A2]/[A] 3m Euribor
+0.70%
[6,75]
years
D 14.5 7,27% 8,37% [Baa2]/[BBB] 3m Euribor
+3.90%
[6,75]
years
E 7.7 3,86% 4,51% [Ba1]/[BB] 3m Euribor
+3.90%
[6,75]
years
F 9.0 4,51% Excess
Spread
NR 17 + 3% fixed [6,75]
years
Michael Gerlach, responsible for structuring the capital markets exit for CB MezzCAP, said: "The transaction documents
the successful interaction of the bank's Corporate banking franchise and its securitisation expertise. The pattern of
generating assets tailored for securitisation programmes will be re-used for succeeding transactions." Dalibor Jarnevic.
Annex 22-68
22. ANNEX 22 FIRM VALUATION , NPV OF FCF, EXAMPLE OF BETA
FOR SERVICE COMPANIES
In order to value our WLM agency business, many possibilities can be used:
We could compare to a similar business listed in the stock and derive a certain value of the agency using
multiples like P/E ratio, Price to Sales ratio, Price to Cash ratio, market value to EBIT or revenues to
EBIT.
We can value the stream of cash generated by the business, discounted to the present value.
We can value the stream of cash using probable outcome of each of our business options (6 in our 5 year
plan) or even consider an infinite number of option and outcome using a Black-Scholes option-pricing
model.
The first method is often used in the sales of small cap businesses or with the private businesses (once the
multiples adapted). This method does not provide a single and simple answer to our question and it does
require similar type of businesses in order to compare. Furthermore it only applies to a business with
some historical records.
The second approach, the discounted cash flow, accounts for future assumptions in a clear, simple and
structured framework, while deriving a firm value.
The third is the valuation (at present value) of probable outcomes of each area development (derive either
by the B&S equation or by a decision tree). This last method fits perfectly our model, yet we believe it
introduces a too large complexity to our purpose and does not provide a simple valuation view of our
start-up business. This last method could be used to revise the firm valuation in further steps (second
round of funding or in five years).
VALUATION USING THE NPV OF FCF
Using the NPV method to derive the firm valuation we must first answer to a certain number of questions
and tune the parameters used along the NPV computation.
First we will need to understand which viewpoint will provide the “best” firm valuation: discounted cash
to the equity or to the firm (equity + debt)?
Second, we will have to consider which cash can be discounted?
Annex 22-69
Third, we will determine the discount rate as the cost of capital of the firm using the weighted average
method. The WACC will be based on the firm beta, the risk free rate and the risk premium. Each of these
parameters will be discussed in this appendix.
Cash Flow Equity Valuation or Cash Flow Firm Valuation?
Having done at first valuation of our company with only equity and compared with a debt leverage we
have assessed better results in cash using debt even though differences accounts for a 3% increase on
return on equity and a 4%decrease in cost of capital.
This is why we will value the WLM agency using the firm method.
The WLM agency Free Cash Flow
We will use the free cash flow (FCF) generated by our model. The Free Cash Flow is the net cash
available after having paid all taxes and after the funding of the projects (with positive NPV). The FCF is
available, aside from buying market securities, for dividends, share buy back or acquisition.
It is composed of three elements, the operating cash flow, the decrease in working capital and the
investment cash flow.
THE OPERATING CASH FLOW
We use the EBIT after tax proxy to determine the cash generated by the recurring
activities to which we add-up the depreciation of our IT tools (e-platform and KM
database). Our operation is generating a positive net cash flow.
The Net Working Capital Decrease
Cash flow from a decrease in working capital is being free to equity holders. Our operation shows an
increase in net working capital that reflects our business growth. The increase in net working capital is
mainly driven by the customer credit.
The Investment Cash Flow
Annex 22-70
Cash flow from net operation on assets (disposal of assets minus investment) is negative as we
progressively invest in our e-platform and our knowledge database without any divestiture of assets.
The WLM Agency’s WACC.
Our Weighted average cost of capital is the cost of equity and debt (used in the 3rd year).
The cost of capital can be determined using the “security market line” (SML), the Risk premium for
Germany is estimated to be around 6%. We estimate our beta to be around 1,9 and we add a market
practice of 17% to our cost of equity in order to account for the lack of market experience.
Cost of Equity = Rf + Beta(Rp) + mp = 3,5% + 1,9 (6%) + 17 %= 32%
Cost of debt = (Rf + ds) * Tr = 10 %
The Risk Free Rate (Rf) is evaluated for the German market at 3,5% using a 10 year bond1.
The Risk Premium stated as the difference between the expected of the market portfolio and the risk free
rate in the SML equation is adjusted by a market practice rate in order to reflect our start-up situation
using the following assumption: the excess in expected return (above the risk premium) is equivalent to
the debt interest rate with a default spread rate in excess. Today the spread rate in excess is above 17%2.
1 See Annex 19 2 See Annex 19, 20, 21
2009 2010 2011 2012 2013Hypothesis Realistic Realistic Realistic Realistic Realistic
Working CapitalAccounts Receivable 8 723 € 29 260 € 62 382 € 196 064 € 322 608 € Accounts Payable 2 276 € 6 879 € 14 617 € 24 912 € 30 876 €
Investment & Depreciationwebsiteknowledge databaseTotal Capex 8500 52900 105800 178500 1835005 yr Deprec 2125 15350 41800 86425 132300
Annual Depreciation 2125 15350 41800 86425 132300Perpetual Growth
YEAR 1 2 3 4 5 Realistic
Operating Cash FlowEBIT after Tax -57480 77992 -251920 184236 1008040Depreciation 2125 15350 41800 86425 132300Interest to Debt 0 0 -5841 -10978 -47375
Working CapitalReceivables -8723 -20537 -33122 -133683 -126544Payables 2276 4603 10014 14898 15978
InvestmentCapex -8500 -52900 -105800 -178500 -183500
Free Cash Flows -70302 24508 -344869 -37602 798899 519284Cum FCF -70302 -45794 -320361 -382470 761297
Annex 22-71
We choose a default spread risk of 17% giving a discount rate of 32% during the first two years,
decreasing to 28% in the fifth be leveraging the firm to 1,25
We choose a Beta of 1,9 which is well above beta’s of pure service companies such as Cap Gemini (beta
of 1,45) or Steria (beta of 1,46) but closer to pure Internet platform service player such as Healthgrades3
(beta of 1,6) taking into account our mixed internet model (E-platform and Call center).
During the 3rd year we will introduce debt in order to decrease the cost of capital and reduce payment of
tax.
Our assumptions were to make a leverage of minimum 25 % starting the 3rd year.
The WLM Agency Value (Base Scenario).
Our 32% cost of equity reflects the WACC during our starting phase (3 first years) then we will use debt
that will decrease cost of capital to around 28 %. To simplify our computation we made three
assumptions for the perpetual growth:
We will reach a steady growth of 1,5% after these five years of growth
Our WACC will lower to 15% in line with good business records and market practice
We expect the market to be more competitive after the first five years and cash generated from operation
should decrease while investment will be renew in order to keep a cost advantage, we then expect the
cash “perpetuity” to be at 65% of the fifth year cash level.
Given those assumptions the net present value of the WLM Agency is 1 Mio €.
3 See annex 20
Perpetual Discount Rate 15% Perpetual GrowthRateDiscount Rate 32% 32% 29% 28% 28% 1,5%
0,7582 0,5748 0,4470 0,3484 0,2728Present Values FCF -53299 14087 -154166 -13099 217950Residual Value 1031623
NPV 1 043 096
YEAR 1 2 3 4 5 BEAnnual Cash Flow -70 302 24 508 -344 869 -37 602 798 899 519 284Cumulated Free Cash Flow -70 302 -45 794 -320 361 -382 470 761 297Cumulated NPV Free Cash Flow -53 299 -39 212 -193 379 -206 477 11 473Operating Profit (EBIT) -57 480 119 988 -251 920 277 529 1 525 321Cumulated Income -57 480 20 512 -179 769 -84 503 1 133 923Net Income -57 480 77 992 -257 760 173 258 960 665
Default spread 12,00% 12,00% 12,00% 10,00% 10,00%1 - Taxe rate 65% 65% 65% 65% 65%Risk free Rate 3,5% 3,5% 3,5% 3,5% 3,5%Market Practice 17% 17% 17% 17% 17%Risk Premium 6% 6% 6% 6% 6%Beta 1,9 1,9 1,9 1,9 1,9 Cost of equity 32% 32% 32% 32% 32%Cost of debt 10,08% 10,08% 10,08% 8,78% 8,78%
Equity / (Debt + Equity) 1,00 1,00 0,85 0,85 0,82 Debt (Debt + Equity) - - 0,15 0,15 0,18
Annex 22-72
CALL FOR ACTION
We intend to develop the business using private investors by founding the business in two rounds:
1. A seed round in order to prove the concept and pilot two years of business and prepare the expansion, with a 62K€ round from investors for a 35% share of equity.
2. A deployment phase during three years in order to expend the business into a leadership position in the life management for B2B, with a 225K€ from investors maintaining a 35% share of equity.
Perspective for development in the life management service for B2B may continue to shine in five years, yet with growth at a much slower pace, before starting to stagnate after seven years. At that time we will be ready to propose an expansion phase into the top tiers market for “highflying decision maker” and diversify our brokerage agency into a top “brick and mortar” life management and children education service company.
EXAMPLE OF BETA FROM TYPICAL SERVICE COMPANY
Company Description Market Ticker Sources Beta
Cap Gemini Consulting &
IT services
Paris Stock
Exchange
CAPP http://www.reuters.com/finance/stocks
06/12/2008
1,41
Steria Consulting &
IT services
Paris Stock
Exchange
http://www.techrules.com
02/12/2008
1,46
Healthgrades Business
services
NASDAQ HGRD http://www.clearstation.com
05/12/2008
1,60
225 550 347 000 € 121 450 65% 35% Round 261 750 95 000 € 33 250 65% 35% Round 1
287 300 442000 154 700 65% 35%Investors Total Founders
Investors FoundersSHARES 30% 70%
FINANCING