“PROFORMA FINANCIAL STATEMENT INTEGRATION”

OCASO -GLAMPUR AND GLAMPING-

09/02/2024

Marco Vazquez

Camila Pulido

Alheli Gutierrez

Daniela Lara
 1. Introduction:
a. Purpose:

In the context of our project "Ocaso," pro forma financial statements hold significant importance.
They serve as foundational tools for strategic planning, enabling us to assess potential outcomes and
make informed decisions regarding the project's direction. Through these statements, we can model
various scenarios, considering factors like expansions, operational changes, or market entries, to
evaluate risks and benefits effectively. Moreover, pro forma statements are essential for presenting
our project's anticipated financial performance to stakeholders, investors, and potential partners,
instilling confidence and support. By leveraging these financial projections, we can guide our
decision-making process, ensuring that every step aligns with our project goals and objectives.
Additionally, pro forma statements allow us to forecast future challenges and opportunities, providing
invaluable insights to steer "Ocaso" towards success. Thus, in our project journey, pro forma financial
statements serve as critical tools for strategic navigation, stakeholder communication, and informed
decision-making, ultimately driving the realization of our project's vision.

b. Scope:

The scope of this document encompasses the first year of development for the Ocaso Glamping
project, spanning from its conceptualization to its initial launch and operation. It will address key
areas including initial conceptualization and planning, product design and development, brand
creation and marketing strategies, operations planning and logistics, concept testing and validation,
as well as policy and procedure development. This comprehensive approach aims to establish a strong
foundation for the project's success, ensuring effective execution within a feasible timeframe.

2. Projection Methodology:
a. Methods used:

To project the financial statements for the first year of the Ocaso Glamping project, a combination of
methods will be utilized, aligning with the outlined areas of focus:

Market Research and Analysis:

Percentage of Sales Method: Utilize historical industry data and market research findings to project
revenue based on expected sales volumes and pricing strategies.

Product Design and Development:

Cost-plus Pricing Method: Calculate the cost of goods sold (COGS) for each glamping unit, including
materials, labor, and overhead, then add a markup to determine the selling price.

Brand Creation and Marketing Strategies:

Budget Allocation Method: Allocate funds for marketing activities based on a percentage of projected
revenue, considering the need for brand establishment and customer acquisition.

Operations Planning and Logistics:

Expense Projection Method: Estimate operational expenses such as utilities, maintenance, and
staffing based on industry benchmarks and projected occupancy rates.

Concept Testing and Validation:

Sensitivity Analysis: Conduct scenario planning to assess the impact of various factors on financial
outcomes, such as changes in occupancy rates, pricing strategies, or operational costs.

Policy and Procedure Development:

Regulatory Compliance Assessment: Evaluate potential legal and regulatory requirements impacting
financial operations, such as taxes, permits, and insurance premiums, and incorporate associated costs
into financial projections.

b. Assumptions:

Market Growth Rate: The projection assumes a steady increase in demand for glamping experiences
in Chihuahua, aligning with the global trend towards exclusive and sustainable travel.
Cost Fluctuations: Cost estimates for construction, amenities, and operational expenses are based on
current market rates and may fluctuate over time. However, it's assumed that careful planning and
sourcing ensure cost stability within the projected period.

Impact of Marketing Strategies: The effectiveness of marketing strategies, such as social media
campaigns, collaborations with influencers, and strategic alliances, is assumed to positively influence
brand visibility and customer acquisition, contributing to revenue growth.

Regulatory Compliance: Assumption includes adherence to regulatory requirements and obtaining

necessary permits for operation, ensuring uninterrupted business activities and avoiding legal
complications.

Customer Preferences: Assumption considers that personalized experiences, luxury amenities, and a
focus on inspiration, healing, and rejuvenation resonate well with the target market, driving customer
satisfaction, repeat visits, and positive word-of-mouth referrals.

Economic Stability: It's assumed that the economic conditions remain relatively stable within the
projection period, minimizing the impact of external economic shocks on consumer spending and
travel behavior.

Environmental Sustainability: The projection assumes a commitment to environmental sustainability,

anticipating that eco-friendly practices enhance brand reputation and appeal to environmentally-
conscious travelers.

Market Education: Assumption includes successful market education efforts to familiarize potential
customers with the concept of glamping with geodesic domes, ensuring awareness and acceptance of
the unique offering provided by Ocaso.
Local Engagement: It's assumed that fostering positive relationships with the local community,
engaging in sustainable practices, and contributing to local development enhance Ocaso's reputation
and support business growth.

Franchise Expansion: Assumption involves successful implementation of the franchise model,

enabling efficient expansion beyond Chihuahua and tapping into new markets, both domestically and
internationally.

3. Proforma Financial Statements:

a. Format:

Income Statement: The pro forma income statement will present projected revenues, expenses, and
net income over a specified period, typically annually for the first few years of operation. It will
reflect the impact of sales growth, cost fluctuations, and marketing expenses on the profitability of
Ocaso's glamping venture. The income statement will highlight key metrics such as gross profit
margin, operating expenses, and net profit, providing insights into the financial performance of the
business.

Balance Sheet: The pro forma balance sheet will outline the projected financial position of Ocaso at
the end of each reporting period. It will include assets, liabilities, and equity, reflecting the company's
resources, obligations, and ownership structure. The balance sheet will provide a snapshot of Ocaso's
financial health, incorporating factors such as investments in property, plant, and equipment, debt
financing, and retained earnings.

Cash Flow Statement: The pro forma cash flow statement will detail the projected cash inflows and
outflows over a specified period, typically annually. It will track cash generated from operating
activities, investing activities, and financing activities, providing insights into Ocaso's liquidity,
solvency, and ability to meet financial obligations. The cash flow statement will highlight factors such
as revenue collection, capital expenditures, loan repayments, and dividend payments, helping
stakeholders assess the company's cash management and financial flexibility.
Income Statement (Year 1)

Revenue Amount (MXN)

Room Revenue $500,000

Total Revenue $500,000

Expenses Amount (MXN)

Construction Costs $300,000

Operating Expenses $100,000

Marketing & Advertising $50,000

Total Expenses $450,000

| Net Income | $50,000 |

Balance Sheet (End of Year 1)

Assets Amount (MXN) Liabilities & Equity Amount (MXN)

Cash $100,000 Loans Payable $200,000

Property & Equipment $400,000 Total Liabilities $200,000

Other Assets $50,000 Shareholder's Equity $350,000

Total Assets $550,000 Total Liabilities & Equity $550,000

Cash Flow Statement (Year 1)

Operating Activities Amount (MXN)

Net Income $50,000

Depreciation & Amortization $30,000

Operating Activities Amount (MXN)

Changes in Working Capital $20,000

Net Cash from Operations $100,000

Investing Activities Amount (MXN)

Capital Expenditures ($300,000)

Other Investing Activities ($20,000)

Net Cash from Investing ($320,000)

Financing Activities Amount (MXN)

Proceeds from Loans $200,000

Repayment of Loans ($50,000)

Other Financing Activities $0

Net Cash from Financing $150,000

| Net Change in Cash | $-70,000 | | Beginning Cash Balance | $100,000 | | Ending Cash Balance |
$30,000 |

b. Key Account Descriptions:

Revenue Projection:

The revenue projection for the Glamping project in Chihuahua is based on the expected occupancy
rates and room rates. Revenue will be generated primarily from accommodation charges for guests
staying in the geodesic domes.
Additionally, revenue may include income from ancillary services such as guided tours, outdoor
activities, and special packages offered to guests.

Production Costs:

Production costs encompass the expenses associated with constructing the geodesic domes, including
materials, labor, and contractor fees. These costs are estimated based on quotes from suppliers and
contractors, as well as market research on construction expenses in the region.

It also includes costs related to procuring and installing luxury amenities within the domes, ensuring
that guests experience comfort and convenience during their stay.

Operating Expenses:

Operating expenses consist of ongoing costs incurred to run the Glamping operation. This includes
staffing expenses, utilities, maintenance, insurance, marketing, and administrative overhead.

Staffing expenses cover salaries and wages for various positions such as managers, receptionists,
cleaning staff, maintenance personnel, and marketing personnel. These costs are projected based on
anticipated staffing levels and prevailing wage rates in the industry.

Utilities encompass electricity, water, and other utility expenses required to operate the Glamping site
efficiently.

Maintenance expenses include routine upkeep of the facilities, landscaping, and repairs to ensure that
the property remains in top condition and meets guests' expectations.

Marketing expenses cover promotional activities, advertising campaigns, digital marketing efforts,
and collaborations with influencers to attract guests and increase brand visibility.

Investments:

Investments include capital expenditures for acquiring property, constructing infrastructure,

purchasing equipment, and developing amenities to enhance the guest experience.
It also encompasses investments in technology, such as online booking systems, reservation
management software, and customer relationship management tools, to streamline operations and
improve guest satisfaction.

Additionally, investments may be allocated towards sustainability initiatives, such as eco-friendly

practices, renewable energy solutions, and waste management systems, to align with environmental
objectives and attract environmentally conscious travelers.

4. Integration Process:
a. Coordination of Departments:

Finance Department:

The finance department, leveraging its expertise in financial analysis and resource management, will
play a crucial role in ensuring the financial viability of the geodesic dome glamping project. Drawing
insights from the projected costs associated with construction, marketing, and operations, they will
collaborate closely with the sales team to align revenue forecasts with financial projections. This
collaboration will facilitate the establishment of realistic budget allocations, optimizing resource
utilization while maintaining profitability. Additionally, finance will work in tandem with operations
to monitor expenses, track financial performance, and make data-driven decisions to uphold financial
sustainability throughout the project's lifecycle.

Sales Department:

The sales department, armed with comprehensive market analysis and customer profiles, will
spearhead revenue generation strategies tailored to the unique offerings of the geodesic dome
glamping project. By closely collaborating with finance, they will ensure that revenue targets are
aligned with financial projections, contributing to the project's overall financial objectives. Moreover,
the sales team will take charge of coordinating promotional activities, managing customer feedback,
and refining sales strategies to attract guests and drive bookings. This synergy between sales and
finance will enable the project to achieve its revenue goals while delivering exceptional guest
experiences.

Operations Department:
Operations, responsible for overseeing the project's practical aspects from construction to day-to-day
management, will provide valuable insights into progress, costs, and staffing requirements. They will
collaborate closely with finance to ensure that budgetary constraints are considered at every stage,
optimizing resource allocation and cost efficiency. Furthermore, working in tandem with the sales
team, operations will align service delivery with customer expectations, ensuring that guests receive
exceptional experiences that contribute to the project's success. This cohesive collaboration among
operations, sales, and finance will drive the effective implementation and sustainable growth of the
geodesic dome glamping project in Chihuahua.

b. Review and Approval:

Data Compilation: The finance department compiles financial projections based on historical data
and market analysis, while the sales department generates revenue forecasts considering market
trends and customer demand. Simultaneously, the operations department assesses resource allocation
and cost projections for the glamping project based on construction timelines and operational
requirements.

Initial Review: Each department conducts an initial review of their projections, focusing on data
accuracy, completeness, and relevance to the geodesic dome glamping project in Chihuahua. They
ensure that the projections align with the project's objectives of pioneering leisure tourism, creating
a unique glamping experience, and fostering community engagement.

Cross-Departmental Review Meeting: Representatives from finance, sales, and operations collaborate
in a cross-departmental review meeting. They discuss their projections in the context of the glamping
project, identifying synergies, dependencies, and potential discrepancies. This collaborative approach
ensures that the projected data collectively support the project's goals and strategies.

Data Alignment and Adjustment: During the meeting, the team works to align projections across
departments, reconciling differences and adjusting assumptions where necessary. For example, sales
projections may inform revenue forecasts, which in turn influence financial projections and
operational plans. By aligning projections, the team ensures coherence and consistency in the data
used for decision-making.
Final Review and Approval: Senior management or project stakeholders conduct a final review of the
aligned projections. They assess the quality, accuracy, and relevance of the data in driving key
decisions related to the geodesic dome glamping project. Approval indicates confidence in the
projected data and their ability to support the successful implementation of the project.

Documentation and Communication: The approved projections, along with explanations of key
assumptions and methodologies, are documented and communicated to relevant stakeholders. This
documentation provides transparency and clarity regarding the basis for the projections and their
implications for the project's execution.

Periodic Review and Updates: To maintain data integrity, periodic reviews are conducted to compare
projections against actual performance. Any discrepancies or deviations are analyzed, and projections
are updated as needed to reflect changes in market dynamics, project milestones, or other factors
affecting the glamping project in Chihuahua.

5. Sensitivity and Alternative Scenarios:

a. Sensitivity Analysis:

Occupancy Rates:

Base Assumption: Our initial projection assumes a conservative 60% occupancy rate, considering the
novelty of our offering and the potential seasonality of tourism in Chihuahua. This rate reflects our
estimation of demand based on market research and competitor analysis.

Sensitivity Test: We will assess the impact of occupancy rate fluctuations by incrementally adjusting
it downwards and upwards by 5% increments. For instance, we'll analyze scenarios with occupancy
rates of 55% and 65% to understand how variations in demand may affect revenue projections.

Analysis: Through this sensitivity test, we aim to gauge the project's resilience to changes in
occupancy rates and evaluate its sensitivity to demand fluctuations. Understanding the potential
impact on revenue will enable us to develop contingency plans and optimize operational strategies to
maximize profitability under varying market conditions.
Average Nightly Rates:

Base Assumption: Our initial pricing strategy sets the average nightly rate at $6,000 MXN, reflecting
the perceived value of our unique glamping experience and competitive positioning within the
market.

Sensitivity Test: We will explore the sensitivity of projected revenue to changes in average nightly
rates by adjusting them incrementally. By testing scenarios with rates such as $5,500 MXN and
$6,500 MXN, we can assess how variations in pricing affect demand elasticity and overall revenue.

Analysis: This sensitivity analysis allows us to understand the price sensitivity of our target market
and evaluate the trade-offs between pricing and demand. By identifying the optimal balance between
maximizing revenue and maintaining competitive pricing, we can refine our pricing strategy to
achieve our financial objectives.

Construction Costs:

Base Assumption: Our initial budget allocates $1,000,000 MXN for the construction of the geodesic
domes, covering materials, labor, and architectural design expenses.

Sensitivity Test: We will examine the impact of variations in construction costs by testing scenarios
with ±10% adjustments. This includes scenarios with construction costs of $900,000 MXN and
$1,100,000 MXN to assess the project's sensitivity to cost overruns or savings.

Analysis: By conducting this sensitivity analysis, we can evaluate the project's financial feasibility
and return on investment in light of potential changes in construction expenses. Understanding the
sensitivity of project economics to variations in costs will enable us to mitigate risks and make
informed decisions throughout the construction process.

b. Alternative Scenarios:

Economic Downturn Scenario:

Description: In this scenario, we anticipate a significant economic downturn affecting consumer

spending and travel patterns. Factors such as recession, job losses, and reduced disposable income
contribute to decreased demand for leisure travel and luxury accommodations.
Impact: The occupancy rates and average nightly rates may decline sharply as consumers prioritize
essential expenses over discretionary spending. Additionally, construction costs may increase due to
supply chain disruptions and inflationary pressures.

Response: To mitigate the impact, we may need to adjust our pricing strategy to offer more
competitive rates and implement cost-saving measures in construction and operations. This could
include renegotiating supplier contracts, delaying non-essential expenditures, and exploring
alternative funding sources.

High Demand Scenario:

Description: In this scenario, we experience unexpectedly high demand for our geodesic dome
glamping experience, driven by positive word-of-mouth, viral marketing campaigns, or external
events boosting tourism in Chihuahua.

Impact: Occupancy rates exceed initial projections, leading to higher-than-expected revenue.

However, operational challenges may arise due to capacity constraints, staffing shortages, and
potential strain on infrastructure and resources.

Response: To capitalize on the opportunity, we may consider adjusting pricing dynamically to

optimize revenue while maintaining a balance between supply and demand. Expanding capacity
through phased construction or partnerships with nearby accommodations could help meet increased
demand without compromising guest experience.

Sustainable Tourism Promotion Scenario:

Description: In this scenario, there is a concerted effort by local and regional authorities to promote
sustainable tourism practices and eco-friendly accommodations. This includes incentives, subsidies,
and marketing campaigns aimed at attracting environmentally conscious travelers.

Impact: Our geodesic dome project receives heightened visibility and support, leading to increased
interest from environmentally conscious consumers. This could translate into higher occupancy rates,
premium pricing opportunities, and positive brand association.

Response: To leverage the momentum, we may enhance our sustainability initiatives, such as
investing in renewable energy sources, implementing waste reduction strategies, and obtaining eco-
certifications. Collaborating with local environmental organizations and participating in
sustainability-focused events can further enhance our reputation as a leading eco-friendly destination.

6. Conclusions and Recommendations:

a. Conclusions:

In conclusion, the projected results of the sensitivity analysis and consideration of alternative
scenarios provide valuable insights into the potential performance and resilience of the geodesic dome
glamping project in Chihuahua. Despite facing uncertainties and varying economic conditions, the
project demonstrates promising prospects for success. The sensitivity analysis highlights the
importance of carefully assessing assumptions and their potential impact on financial outcomes. It
underscores the need for robust risk management strategies and contingency plans to mitigate adverse
effects and capitalize on opportunities. Additionally, exploring alternative scenarios allows us to
anticipate and prepare for a range of potential outcomes, empowering the business to adapt and thrive
in dynamic environments. Overall, the projected results reaffirm the viability and potential of the
geodesic dome glamping project, emphasizing the importance of strategic planning, flexibility, and
proactive management to achieve sustainable growth and success.

b. Recommendations:

Optimization of Pricing Strategies: Based on the projected financial outcomes, it is recommended to

periodically review and adjust pricing strategies to maximize revenue while remaining competitive
in the market. This may involve offering seasonal promotions, adjusting rates based on demand
fluctuations, and implementing dynamic pricing algorithms to optimize occupancy rates and revenue
per available room (RevPAR).

Investment in Marketing and Promotion: Allocate resources towards marketing and promotion efforts
to increase brand awareness and attract a diverse clientele. This may include targeted digital
marketing campaigns, collaboration with influencers and travel bloggers, participation in industry
events and trade shows, and leveraging social media platforms to engage with potential guests and
showcase the unique features of our glamping experience.
Expansion of Distribution Channels: Explore opportunities to expand distribution channels beyond
the current online platforms to reach a wider audience. This could involve establishing partnerships
with additional online travel agencies, tour operators, and travel consortia, as well as leveraging
emerging distribution technologies such as mobile apps and online booking engines to streamline the
reservation process and improve accessibility for guests.

Enhancement of Guest Experience: Continuously strive to enhance the guest experience by investing
in amenities, services, and infrastructure improvements. This may include upgrading facilities,
offering personalized services and activities, implementing eco-friendly initiatives, and soliciting
feedback from guests to identify areas for improvement and innovation.

Development of Loyalty Programs: Consider implementing loyalty programs or incentive schemes

to foster repeat business and enhance customer loyalty. This could involve offering discounts, perks,
or exclusive privileges to returning guests, as well as implementing referral programs to incentivize
word-of-mouth marketing and customer acquisition.

Adoption of Sustainable Practices: Given the growing importance of sustainability in the tourism
industry, prioritize the adoption of sustainable practices and eco-friendly initiatives within the
glamping project. This may involve sourcing locally produced materials, minimizing waste and
energy consumption, supporting local conservation efforts, and obtaining certifications or
endorsements that validate our commitment to environmental stewardship.

Continuous Monitoring and Evaluation: Establish a system for ongoing monitoring and evaluation of
key performance indicators (KPIs) to track the effectiveness of implemented strategies and identify
areas for improvement. Regularly review financial performance, occupancy rates, guest satisfaction
scores, and market trends to inform strategic decision-making and ensure the long-term success of
the glamping project.

7. Annexes:
a. Data and Sources:

All the information is taken from research

documents carried out at the university in order to analyze the project in depth.

https://docs.google.com/document/d/1CHFFLmT0Lur_ItQJDZwtw_0GEFuEksubS3FPTGzIqw/edi
t

https://docs.google.com/document/d/1u42vn70bH6vryGfthJZL9z82sg-X8_-LIyTB1EAxbk0/edit

https://docs.google.com/document/d/1AafLHezgaKL5krdLAucTX_73RNpJuluxii3bI--yVIM/edit

https://docs.google.com/document/d/1TyYKlRrI2gAMjsYlZi37K9axbQFIbdhBVUg6kEoHtH8/edit

b. Models & Formulas:

evenue Projection Model:

Utilizes the formula: Total Revenue = Number of Bookings * Average Price per Booking

Cost Projection Model:

Utilizes the formula: Total Costs = Fixed Costs + Variable Costs

Profit Projection Model:

Utilizes the formula: Profit = Total Revenue - Total Costs Review & Update:
c. Revision Frequency:

The pro forma financial statements for the geodesic dome glamping project in Chihuahua will be
reviewed and updated on a quarterly basis. This frequency allows for timely monitoring of financial
performance, market dynamics, and operational metrics to ensure that the projections remain accurate
and relevant. Quarterly reviews enable the project team to promptly identify any deviations from the
projected results, assess the impact of external factors such as economic changes or competitive
developments, and adjust strategies as needed to optimize performance and mitigate risks.
Additionally, quarterly updates facilitate effective communication with stakeholders and provide
transparency regarding the project's progress and financial health.
 8. Approval:
a. Signature and Date:

Daniela Lara: Chief Financial Officer (CFO) [Firma] Fecha: 9 de febrero de 2024

____________________________________

Alheli Gutierrez: Chief Operating Officer (COO) [Firma] Fecha: 9 de febrero de 2024

____________________________________

Marco Vazquez: Director of Sales [Firma] Fecha: 9 de febrero de 2024

____________________________________

Camila Pulido: Chief Executive Officer (CEO) [Firma] Fecha: 9 de febrero de 2024

____________________________________