Existing Umisushi Outlets

Monthly Data
Number
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
Total
Mean
Median
Mode

Location
Tiong Bahru Plaza
313@ Somerset
AMK Hub
Pasir Ris MRT
Tampines MRT
Eunos MRT
Eastpoint
Paya Lebar MRT
Changi City Point
Kallang MRT
Holland V MRT
Jurong East MRT
Pioneer MRT
Boon Lay MRT
Bukit Gombak MRT
PSA
Kallang Bahru

0.092903
Area in sq m
Location Type
17.00
B
22.02
A
30.00
A
17.50
B
28.62
B
26.00
B
30.01
B
21.50
B
62.76
B
21.00
B
23.92
B
27.42
B
15.20
B
39.92
A
23.85
B
39.69
C
75.00
C
521.41
30.67
26.00
B

Size Type
1
2
2
1
2
2
2
2
3
2
2
2
1
2
2
2
3

$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

Est. Rent
3,740.27
7,706.30
10,500.08
3,850.00
6,296.40
5,720.00
6,601.69
4,730.00
13,807.34
4,620.00
5,262.40
6,032.40
3,344.00
13,972.00
5,247.00
3,175.20
5,999.97
110,605.06
6,506.18
5,859.99

Est. Revenue
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

23,521.32
48,462.32
66,031.45
24,211.34
39,595.92
35,971.13
41,515.76
29,745.36
86,829.64
29,053.61
33,093.44
37,935.71
21,029.28
87,865.15
32,996.60
19,967.75
37,731.79
695,557.58
40,915.15
35,971.13

Est. Income
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$

4,351.81
8,966.29
12,216.86
4,479.48
7,325.87
6,655.23
7,681.07
5,503.36
16,064.85
5,375.37
6,122.81
7,018.70
3,890.75
16,256.43
6,104.89
3,694.35
6,980.97
128,689.08
7,569.95
6,655.23

Monthly Data
Shop Size Types Shop Size in sq m
1
10 to 20
2
21 to 50
3
51 to 100
4
101 to 300
Neo Group's Total Rental Expense
Annual
Monthly
Space Types
Area in sq m
Orange Clove
204
Orange Clove
206
Orange Clove
204
H-Cube
280
H-Cube
239
191
Niwa Sushi Printing
Total
1,324
Umi Sushi Retail
521.41
Total
1,845
% Umi Retail
28%

Location Type
A
B
C
D

$
$

Cost per sq m
$
350.00
$
220.00
$
80.00
$
38.00

1,906,693.00
158,891.08

Cost
$
$
$
$
$
$

7,752.57
7,826.71
7,752.57
10,640.37
9,082.00
7,258.00

$
$
$

50,312.21
110,605.06
160,917.27

Umi Sushi's Total Revenue

Annual
$
Monthly
$
Total Monthly Rent
$
Revenue per dollar rent
$
Umi Sushi's Total Income
Annual
$
Monthly
$
% of Income over Revenue

Monthly

69%

8,346,691.00
695,557.58

110,605.06
6.29
1,544,269.00
128,689.08
19%

Notes:
Amount Allocated for Expansion
5,000,000
Sales from food retail outlets increased by 25.6% from 2011 to 2012
Except for outlet at Pioneer MRT

CVP Analysis

Group Expenses

Umi Sushi Expenses

Umi Sushi Variable Cost Breakdown

Umi Sushi Fix Cost Breakdown

CM Ratio
CM
Net Income

Neo Group Revenue

Revenue of UmiSushi
Percentage of Umi Sushi Revenue

FY2010
FY2011
$22,654.00 $29,998.00
$3,036.00
$4,979.00
13.40%
16.60%

Purchases
Employee benefit
Distribution cost
Depreciation cost
Advertising cost
Rental
Utilities

$9,388.00
$4,883.00
$1,431.00
$504.00
$911.00
$574.00
$683.00

$11,506.00
$7,412.00
$1,612.00
$929.00
$1,165.00
$1,049.00
$890.00

Purchases
Employee benefit
Distribution cost
Depreciation cost
Advertising cost
Rental
Utilities

$1,258.14
$654.40
$191.78
$67.54
$122.09
$396.06
$91.53

$1,909.74
$1,230.23
$267.56
$154.19
$193.36
$723.81
$147.72

Purchases
Variable Staf
Utilities
Distribution
Total:

$1,258.14
$196.32
$91.53
$191.78
$1,737.77

$1,909.74
$369.07
$147.72
$267.56
$2,694.08

Total:

$396.06
$122.09
$67.54
$458.08
$1,043.77

$723.81
$193.36
$154.19
$861.16
$1,932.53

0.43
$1,298.23

0.46
$2,284.92

$254.45

$352.39

Rental
Advertising Cost
Depreciation Cost
Permanent Staf

AY 2010
Contribution Margin (CM)
Breakeven Margin (BE)
Sales Dollars ($)
Percentage (%)
Margin of Safety (MOS)

0.43
$2,440.94
80.40%

Sales Dollars ($)

Percentage (%)
Degree of Operating Leverage (DOL)

$595.06
19.60%
5.10

Note:
Rental calculation is based on the size and location of the outlet (69%)

FY2012
$38,376.00
$8,340.00
21.73%

(all figures are in thousands)

$12,080.00
$9,326.00
$1,972.00
$1,340.00
$1,344.00
$1,907.00
$1,163.00
$2,625.27
$2,026.76
$428.56
$291.21
$292.08
$1,315.83
$252.75
FY2010

$2,625.27
$608.03
$252.75
$428.56
$3,914.60

72.40%
11.30%
5.27%
11.04%

FY2010

$1,315.83
$292.08
$291.21
$1,418.73
$3,317.86

37.95%
11.70%
6.47%
43.89%

0.53
$4,425.40
$1,107.54

AY2011
Contribution Margin (CM)
Breakeven Margin (BE)
Sales Dollars ($)
Percentage (%)
Margin of Safety (MOS)

0.46
$4,211.12
84.58%

Sales Dollars ($)

Percentage (%)
Degree of Operating Leverage (DOL)

$767.88
15.42%
6.48

n thousands)

In Percentage
FY2011

FY2012

70.89%
13.70%
5.48%
9.93%

67.06%
15.53%
6.46%
10.95%

FY2011

FY2012

37.45%
10.01%
7.98%
44.56%

39.66%
8.80%
8.78%
42.76%

AY2012
Contribution Margin (CM)
Breakeven Margin (BE)
Sales Dollars ($)
Percentage (%)
Margin of Safety (MOS)

Sales Dollars ($)

Percentage (%)
Degree of Operating Leverage (DOL)

0.53
$6,252.75
74.97%

$2,087.25
25.03%
4.00

Capital Budgeting
initial Cost Outlay

Item
Fixed

Unit Cost

Quantity

Counter top
Cashier
Display refrigerator

$
$
$

3,500
500
1,400

1
1
2

Variable

Shop Size:

Stove
Refridgerator
Sink
Steamer
Fryer
Rice cooker
Pots and Pans
Renovation
Tables
Chairs

$
$
$
$
$
$
$
$
$
$

2
2
1
1
1
1
10
1
4
12

3,500
1,348
700
1,500
180
240
100
3,800
100
30

Total

Total
$
$
$

3,500
500
2,800

$
$
$
$
$
$
$
$
$
$

7,000
2,696
700
1,500
180
240
1,000
3,800
400
360

###

Shop Size
1
2
3

No. of TablesNo. of ChairsRenovation

4
6
10

12
18
30

1
1.5
2

Shop Size
Types

Shop Size
in sq m

Location
Type

1
2
3

10 to 20
21 to 50
51 to 100

A
B
C

Shop Size and Location Type Categories' and Rental Cost

A
B
Rental Deposit as
1
$
4,860.00 $
2,280.00
Initial Outlay and
2
$ 11,880.00 $
7,220.00
Salvage Value
3

$ 18,090.00 $ 16,720.00

3 month's deposit
1
2

A
B
$ 14,580.00 $
6,840.00
$ 35,640.00 $ 21,660.00

$ 54,270.00 $ 50,160.00

Depreciatio
n per
month
$
$
$

Salvage
Value

97.22 $
13.89 $
77.78 $

$
$
$
$
$
$
$
$
$
$

194.44
74.89
19.44
41.67
5.00
6.67
27.78
105.56
11.11
10.00

Kitchen
Counter

525.00
75.00
420.00

$
$
$
$
$
$
$
$
$
$

Renovation
Seating

1,050.00
404.40
105.00
225.00
27.00
36.00
150.00
570.00
-

685.44 $ 3,587.40

Scale of
Kitchen
1
1.5
2

Total
Capital
###
###
###

Cost per sq
m
$
$
$

Legend

270.00
190.00
80.00

egories' and Rental Cost

$
$
$

C
880.00
2,000.00
6,960.00

$
$

C
2,640.00
6,000.00

posit

Total
Depreciatio
n
$ 685.44
$ 933.72
$ 1,192.56

Salvage
Value
###
###
###

$ 20,880.00

Capital Budgeting
Target Locations
1: Cityvibe
Clementi Central
Price per sq m
Area in sq m
Total Rent
Total Revenue

Negotiation
3
355.2091967
55.74
$ 19,799.36 $
$124,511.44 $

Year
Monthly Revenue
$
Variable Expenses
Direct Materials
-$
Labour
-$
Utilities
-$
Distribution
-$
Contribution Margin $
Fixed Expenses
Rent
-$
Depreciation
-$
Labour
-$
Net income
$
Annual Income
$
Year
Cash flow
Rental Deposit
Salvage Value
Depreciation
Total

1
55,137.25 $

2
74,109.21 $

3
99,609.15

17,092.55
4,135.29
1,720.28
2,834.05
29,355.07

-$
-$
-$
-$
$

22,973.86
5,558.19
2,312.21
3,809.21
39,455.74

30,878.84
7,470.69
3,107.81
5,119.91
53,031.91

15,839.49
1,192.56
9,649.02
2,674.01
32,088.12

-$
-$
-$
$
$

###
###
17,431.60
18,568.27
222,819.21

0
-$ 42,932.00 $
-$ 47,518.47

1
32,088.12 $

2
113,455.05

$
-$ 90,450.47 $

14,310.67
46,398.79 $

###
127,765.72

Sensitivity Analysis

NPV
IRR
Payback Period

Decision Values

-$
-$
-$
-$
$

15,839.49
1,192.56
12,969.11 -$
9,454.59 $
113,455.05 $

Required Rate of Return

Change in Revenue

-20%
284.1673574
55.74
15,839.49
99,609.15

12%

Change in Revenu

20%
$369,229.70
153%
0.98305132

1: Cityvibe

0%
$231,981.26
101%
1.34478479

0%
-20%
$94,732.82
49%
2.422886775

2: Sim Lim Square 3: Harbourfr

NPV
IRR
Payback Period

$231,981.26
101%
1.34478479

$10,802.15
25%
2.347163412

$131,059.35
89%
1.452424845

Revenue per dollar rent

Conversion:
Growth Rate
Direct Material percentage
Direct Labor percentage
% of Income over Revenue
Utilities percentage
Distribution percentage

6.29
0.092903
25.60%
31%
25%
19%
3.12%
5.14%

Input
Per Month
Shop Size
Total Capital
1
$
24,676.00
2
$
33,614.00
3
$
42,932.00

3
$222,819.21
$ 47,518.47
$ 6,154.80
$ 14,310.67
$290,803.14

Total Depreciation

Salvage Value

###
$ 933.72
###

###
###
###

0.1612136

Shop Size in sq m

10 to 20
21 to 50
51 to 100

Capital Budgeting
Target Locations
2: Sim Lim Square
Negotiation
Rochor Canal
-10%
2
Price per sq m
99.673853374 89.70646804
Area in sq m
25
25
Total Rent
$
2,491.85 $ 2,242.66
Total Revenue
$ 15,670.37 $ 14,103.34
Year
Monthly Revenue $
Variable Expenses
Direct Materials -$
Labour
-$
Utilities
-$
Distribution
-$
$
Contribution Marg
Fixed Expenses
Rent
-$
Depreciation
-$
Labour
-$
Net income
-$
Annual Income
-$
Year
Cash flow
Rental Deposit
Salvage Value
Depreciation
Total

1
2
3
7,806.70 $ 10,492.88 $ 14,103.34
2,420.08
585.50
243.57
401.26
4,156.29

-$
-$
-$
-$
$

3,252.79
786.97
327.38
539.33
5,586.41

-$
-$
-$
-$
$

2,242.66
933.72
1,366.17
386.27
4,635.21

-$
-$
-$
$
$

2,242.66
933.72
1,836.25
573.77
6,885.27

-$ 2,242.66
-$
933.72
-$ 2,468.08
$ 1,864.15
$ 22,369.78

0
-$ 33,614.00 -$
-$ 6,727.99

-$ 40,341.99

Required Rate of Return

NPV
IRR
Payback Period

NPV
IRR
Payback Period

1
4,635.21 $

2
3
6,885.27 $ 22,369.78
$ 6,727.99
$ 4,871.10
$ 11,204.67 $ 11,204.67 $ 11,204.67
$ 6,569.45 $ 18,089.93 $ 45,173.53
12%

$10,802.15
25%
2.3471634115

Sensitivity Analysis
Change in Rev

4,372.03
1,057.75
440.02
724.91
7,508.62

Change in

20%
0%
$30,234.71
$10,802.15
46%
25%
1.999754581 2.347163412

0%
-20%
$8,630.41
1%
2.94869418

Revenue per dollar rent

Conversion:
Growth Rate
Direct Material percentage
Direct Labor percentage
% of Income over Revenue
Utilities percentage
Distribution percentage

6.29
0.092903
25.60%
31%
25%
19% 0.16121363
3.12%
5.14%

Input
Shop Size
1
2
3

Per Month
Total
Capital
###
###
###

Total Depreciation

###
$ 933.72
###

Salvage Value

Shop Size in sq m

### 10 to 20
### 21 to 50
### 51 to 100

Capital Budgeting
Target Locations
3: Harbourfront Centre
Negotiation
Harbourfront
2
0%
Price per sq m
204.19146852 204.1914685
Area in sq m
46
46
Total Rent
$
9,392.81 $ 9,392.81
Total Revenue
$ 59,068.17 $ 59,068.17
Year
Monthly Revenue $
Variable Expenses
Direct Materials -$
Labour
-$
Utilities
-$
Distribution
-$
$
Contribution Marg
Fixed Expenses
Rent
-$
Depreciation
-$
Labour
-$
Net income
$
Annual Income
$
Year
Cash flow
Rental Deposit
Salvage Value
Depreciation
Total

1
2
3
32,696.36 $ 43,946.72 $ 59,068.17
10,135.87
2,452.23
1,020.13
1,680.59
17,407.54

-$ 13,623.48 -$ 18,311.13
-$ 3,296.00 -$ 4,430.11
-$ 1,371.14 -$ 1,842.93
-$ 2,258.86 -$ 3,036.10
$ 23,397.23 $ 31,447.89

9,392.81
933.72
5,721.86
1,359.15
16,309.79

-$ 9,392.81
-$
933.72
-$ 7,690.68
$ 5,380.03
$ 64,560.33

0
-$ 33,614.00
-$ 28,178.42

-$ 61,792.42

Required Rate of Return

NPV
IRR
Payback Period

NPV
IRR
Payback Period

1
2
3
$ 16,309.79 $ 64,560.33 $129,413.22
$ 28,178.42
$ 4,871.10
$ 11,204.67 $ 11,204.67 $ 11,204.67
$ 27,514.45 $ 75,765.00 $173,667.40
12%

$131,059.35
89%
1.4524248454

Sensitivity Analysis
Change in Rev

-$ 9,392.81
-$
933.72
-$ 10,336.93
$ 10,784.43
$129,413.22

Change in

0%

20%
0%
-20%
$212,447.60 $131,059.35
$49,671.11
134%
89%
42%
1.0549294774 1.452424845 2.637110757

Revenue per dollar rent

Conversion:
Growth Rate
Direct Material percentage
Direct Labor percentage
% of Income over Revenue
Utilities percentage
Distribution percentage

6.29
0.092903
25.60%
31%
25%
19% 0.16121363
3.12%
5.14%

Input
Shop Size
1
2
3

Per Month
Total
Capital
###
###
###

Total Depreciation

###
$ 933.72
###

Salvage Value

Shop Size in sq m

### 10 to 20
### 21 to 50
### 51 to 100