THLC Ltd

Health and Leisure Centre- Uganda, 2012 on

Final Pitch

Dec 5th 2011

David Torr

EBAC 52 Venture management

Oct 17th 2011

datoran@hotmail.comdat031@mail.usask.ca

Uganda

• MINUS: post war, developing nation, leader 25 years, next election 2017

• PLUS: Oil, minerals, coffee, growing tourism and expatriate community

• PLUS: Growing investment• PLUS: rapid population growth: 33 million people, many poor but also

a significantly growing middle and high income population.

Uganda – a new economy

Roads, some good some bad Increasing middle class, High bank rates

Luxury cars for the government, ($31M per year for fleet of 11,000 vehicles, “bodas” (m/bikes) and “matatus” (minivans) for the general population

THLC Ltd multi facility complex center

Layout

2) Accommodation

• Comfortable lakeside accommodation, • conducive for Rest and Relaxation

Key centres:

1). Restaurant• Looking at healthy foods but also what the people want, in

essence allowing choice

3) THLC Spa and Mariner

THLC Ltd combined sections net incomes

Net Income

Total 6 years

2012 2013 2014 2015 2016 2017

Restaurant 636,550 (15,820) 58,296 99,165 130,314 163,883 200,711

Accommodation 2,103,557 (44,875) 167,757 313,424 481,618 537,007 648,625

Spa and mariner 950,731 19,520 110,974 152,167 186,645 226,279 255,147

Totals 3,690,838 (41,175) 337,027 564,757 798,577 927,168 1,104,484

Critical Negative Variables and Risks

• Wages and benefits may change as new bills come into play.

• Inflation is a factor, having been higher than usual in 2011 with escalation of fuel prices.

• Weather patterns – rains, less clients especially the mariner when it rains.

• Competition when it builds up.

• Political situation – elections 2016/7

Critical Positive variables

• Lakefront and people’s love for water

• Investment license:

- 5 year tax break with investment license- purchases (a percentage of VAT (currently at 18%) is reimbursed

• Tourism figures steadily and significantly increasing as are expatriate staff working and living in country.

• The Oil industry – more jobs = more people with income to spend

• Enthusiasm for spa and leisure (including mariner)

Return on Investment

• Though with initial loss in the first year because of initial investment costs and fewer running days, it will start to generate profit the second year

• Profit momentum builds in the third year and the original investment can be paid off by the fourth year.

• High IRR allows for contingencies that are still being looked at. Having this buffer makes the feasibility of the project good.

In conclusion…

• Like anything, there are conditions and hard work that must be met, and challenges that must be overcome, but….

• From the base business plan: a promising venture, and good investment.

• Good charismatic outlook.

• A definite potential winner!