Assumptions used in the model

Assumptions used in the model

Outpatient services
Price per treatment, $ 80
Annual increase in price per treatment, % 9%
Maximum number of clients per day 90
Utilization rate, % 75%
Annual increase in utilization rate, % 7% Structure of marketing expenses, %
Inpatient services
5%
Average price per day 110 15%
Annual increase in price per day, % 9%
Number of beds: 25%
year 1 20
year 2 30
year 3 30 30%
year 4 30
year 5 100
25%
Utilization rate, % 75%
Annual increase in utilization rate, % 4%
Social Media Traditional marketing tools
Source management information
Online marketing Participation in career fair, printing materials
Other
Assumptions used in the model - expenses
Source: Management inf ormation

Annual marketing costs, $ 100,000

Staff costs, $ 606,000
Other expenses, $ 70,000
Annual increase in marketing expenses, % 35%
Annual increase in other expenses, % 35%
Annual increase in staff costs in year 3 and 4, % 10%
Annual increase in staff costs in year 5, % 35%
Source: Management inf ormation

38
Business plan – Project E ©XXXX - Priv ate and Conf idential
Financial Projections Assumptions

Assumptions used in the model

Annual staff costs, $

Year 1 Year 2 Year 3
Position Annual salary,
# of staff # of staff Annual salary, $ # of staff Annual salary, $
$
Managing Director 1 35,000
Administrator 1 10,000
IT specialist 1 12,000
Accountant 1 10,000
Supplies officer 1 10,000
Psychiatrist 2 28,000
Medical Officer 4 56,000
Paramedics 2 28,000
Nursing Manager 2 28,000
Psychologist 4 56,000
Social Worker 2 16,000
Counsellor 4 40,000
Pastoral Counsellor 2 20,000
Nurses 12 120,000
Security officers 3 27,000
Auxiliary Staff 4 36,000
Cleaners 4 32,000
Groundsman 1 8,000
Administrative Assistant 2 16,000
Drivers 2 18,000
Total 55 606,000
Source: Management inf ormation
 2 80,000 3 160,000
1 15,000 1 15,000
1 13,000 2 40,000
2 23,000 3 40,000
1 12,000 2 28,000
2 28,000 3 42,000
4 56,000 4 56,000
2 28,000 2 28,000
2 28,000 2 28,000
4 56,000 4 56,000
2 16,000 2 16,000
4 40,000 4 40,000
2 24,000 2 24,000
12 132,000 18 216,000
3 27,000 3 27,000
4 40,000 4 48,000
4 40,000 4 50,000
1 8,000 1 8,000
2 16,000 3 24,000
2 18,000 2 18,000
57 700,000 69 964,000

39
Business plan – Project E ©XXXX - Priv ate and Conf idential
Financial Projections Sales

Sales

Revenue structure, %
Utilization rate, %
14,000,000
1
12,000,000 0.9
0.8
10,000,000
0.7
8,000,000 0.6

6,000,000 0.5
0.4
4,000,000
0.3
2,000,000 0.2
0.1
-
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 0
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Outpatient services Inpatient services Telemedicine
Outpatient services Inpatient services
Source: Management inf ormation Source: Management inf ormation
Changes in average price per treatment, $
200 Structure of operating expenses, %
180
160 4%
8%
140
120
10%
100 42%
80
60 15%
40
20
0 12%
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 9%

Outpatient services, per treatment Inpatient services, per day Staff costs Marketing costs Medical and surgical supplies
Source: Management inf ormation
Contracted services Other supplies and services Communications and utilities
Other expenses
Source: Management information

40
Business plan – Project E ©XXXX - Priv ate and Conf idential
 Profit and Loss
Financial Projections
Account

Projected profit and loss account – the Company will become operationally profitable
starting from year 1

Projected Profit and Loss account

$ Year 0 Year 1 Year 2 Year 3 Year 4
Revenue - 2,573,250 3,322,843 4,226,140 5,109,335 9,8
Operating expenses
Staff costs - (606,000) (700,000) (964,000) (1,060,400) (1,4
Marketing costs - (100,000) (135,000) (182,250) (246,038) (3
Medical and surgical supplies - (167,356) (193,316) (266,223) (292,846) (3
Contracted services - (208,734) (241,112) (332,046) (365,251) (4
Other supplies and services - (149,096) (172,223) (237,176) (260,893) (3
Communications and utilities - (119,277) (137,779) (189,741) (208,715) (2
Other expenses - (70,000) (77,000) (84,700) (93,170) (1
Total operating expenses - (1,420,463) (1,656,430) (2,256,136) (2,527,312) (3,3
EBITDA - 1,152,787 1,666,413 1,970,003 2,582,022 6,4
Deprecation - (106,429) (106,429) (106,429) (106,429) (9
Income tax (22%) - (230,199) (343,197) (409,986) (544,631) (1,2
Net profit/(loss) - 816,159 1,216,788 1,453,588 1,930,963 4,2
EBITDA margin, % 32% 37% 34% 38%
Source management information